Houston, TX and 0% down payment

[Desmond Alexander]

Hi,

So, I am from Houston and I was there last week helping friends and family recover from Hurricane Harvey. It was a very sad, fulfilling and humbling experience. I notice upon my return that EVERY REAL ESTATE AGENT I knew was starting to offer 0% down FHA LOAN to assist people getting into a new home or slightly distressed home.

I was wondering if someone that has been doing this longer than me think. What are the pros and cons? If I am able to assist my family and friends recover STRATEGICALLY I am definitely up for the job.

I appreciate all of the feedback.

[Jessica McKinney]

@Desmond Alexander

My comment got deleted because I linked to a blog post on the subject. Opps! But here's what I had to say minus the link.

It's the FHA 203(h) program, The pro's are definitely the 0 down, and that the qualification guidelines are more relaxed. They can exclude the existing mortgage payment from liabilities when figuring DTI under certain situations. And credit issues post disaster and caused by the disaster can be overlooked. The con's are mostly the same as with a regular FHA loan, in that there's upfront and ongoing MIP.