Solutions That Fit Your Client: 5 Government Loans

When you truly meet your clients’ needs, you set yourself apart from the competition. Offering a wide array of loans allows you to find a solution that truly fits the client, rather than trying to fit the client to your solutions. This mindset of finding a real solution instead of merely selling a product gives you credibility. It tells clients that you genuinely are looking out for their needs first. When this happens, don’t be surprised if you’re rewarded with referrals for years to come.

Caliber Home Loans, Inc. helps you accomplish this by offering so many loan products to your portfolio. Here, we will look at loans offered by the Federal Housing Authority (“FHA”). These loans are meet the needs of clients with lower credit scores. They allow for lower down payments because they are guaranteed by the FHA. Let’s take a deeper look at five FHA home loan solutions you should always have in your pocket.

FHA Loans for Low Down Payments
Two of the most popular government-backed home loan types in the nation are FHA ARM and Fixed Rate Mortgages. Eligible property types generally include primary residences: detached or attached single-family, Planned Unit Development (“PUD”), FHA-approved condominiums (detached or attached), 2-4 units, and modular homes.

FHA Fixed Rate
This loan is ideal for borrowers with a 600 or better FICO score. A feature that makes it so desirable is the low down payment requirement, oftentimes as little as 3.5% down.

FHA ARM
For clients with less cash flow and who are planning to move within the next 5 to 10 years, an adjustable-rate FHA loan may be the solution they’re looking for. Not only does it feature down payments as low as 3.5%, but it usually offers a lower initial interest rate as well. This typically results in lower monthly payments during the initial period, which can make it feasible for the borrower to qualify for a larger loan amount. This is a huge plus for clients with limited cash flow.

Special notes: The minimum loan amount must be $25,000, and the maximum may not exceed applicable loan limits for the area.

FHA High Balance Fixed Rate
This type of loan may be needed for high cost markets. It also allows borrowers to qualify for a loan that may cover a second home or investment property.

Fixed and High Balance Fixed Mortgages
Unfortunately, victims of natural disasters such as floods and fires are a growing category of clients. In 2020 alone, there were 20 Major Disaster Declarations issued in the United States for the following: fires (3), flooding (6), hurricanes (8), and tornadoes (3). (Declared Disasters | FEMA.gov).

These people have very definite and pressing needs. Thankfully, you are equipped with loan options specifically designed to help them obtain mortgages and once again become homeowners. The FHA 203(h) Loan provides home financing to victims of a recent major disaster (declared within the last 12 months) whose homes were substantially damaged or destroyed. It offers financing up to 100% of the sales price and does not require the new home being purchased be in the same location.

Special notes: For borrowers with a FICO score of 620 or better. This loan is solely for primary residences, and is subject to conforming or statutory loan limits. Ineligible property types include investment properties, second homes, attached properties, and manufactured or mobile housing.

Offer clients exactly what they need
Here at Caliber, we offer these FHA loan products, plus other government, conventional and refinance products - so you can meet the needs of every type of customer. Partner with us to have immediate access to all our loan options, proprietary tools and top-notch support team. Helping others realize their dreams is our daily passion.