MY COLLEAGUE thought our discussion about where to locate the causes of the financial crisis had left the issue of inequality behind. I didn't really think it had. I may have misunderstood what he was arguing, both in his initial post and in his reading of Raguram Rajan, but this is the thrust of the...
FHA Mortgage Home Loans
Why are many people choosing FHA Mortgage Home Loans?
FHA mortgages make it easy to refinance. Reduced down payment requirements for buyer and higher loan to value for refinance customers.
Many satisfied clients have been able to purchase their first home with an FHA Loan.
Refinance customers that have lost equity in their homes are also turning to FHA Home Loans to help them refinance high interest rate mortgages into more affordable monthly mortgage payments.
On average we can save you $5000 in closing costs over most of our competitors
As our customer you will deal with the same customer service representative from beginning to end.
We can submit your loan to many of our lenders with one credit report. No need to have your credit pulled multiple times.
- Competitive Interest Rates.
- Low Closing Costs.
- Personal customer service representative.
- We can submit your loan to many lenders with one credit report.
Please call us Now at 1-800-350-9987
We are ready to assist you.
FHA Mortgage Home Loan Information
We know you have more question regarding FHA Mortgage Loans. Please bookmark this page and visit us often. We will keep it updated with current news and articles related to FHA Mortgage Loans.
Please note that these guidelines are for reference purposes only. Loan approval is made at each lenders discretion. There are many other programs available that may better suit your needs please contact us so we can custom tailor a loan program specially for you.
Some of the most commonly searched terms for FHA Loans and detailed guidelines section:
- FHA Mortgage Home Loan Limits
- FHA Mortgage Loan Interest Rates
- What is an FHA Mortgage Loan?
- History of FHA
- FHA Mortgage Home Loan Refinance
- FHA Mortgage Home Loan Requirements
- FHA Mortgage Loan Programs
- FHA 203k Home Improvement program
- FHA Streamline Refinance
- FHA Jumbo Mortgage Home Loan
- FHA Terms
- FHA Down Payment Requirements
- FHA Mortgage Loan Detailed Guidelines
Fha Mortgage Loan Limits
| 1 Unit | $417,000 | AK-HI $626,500 |
| 2 Units | $533,000 | AK-HI $800,775 |
| 3 Units | $645,300 | AK-HI $967,950 |
| 4 Units | $801,950 | AK-HI $1,202,925 |
FHA Mortgage Home Loan Interest Rates
Don't be fooled by advertised rates. The best way to find out is to get a custom quote. We have very competitive interest rates on FHA Mortgage Loans. Every borrower has different needs so please fill out our contact form to receive a custom quote.
You can save up to $5000 in closing costs and fees over most of our competitors. We are a discount lender with low overhead we pass substantial saving to our customers.
What is an FHA Mortgage Home Loan?
An FHA mortgage loan is is backed by the Department of Housing and Urban Development or HUD. Unlike a conforming mortgage loan an FHA Mortgage Home Loan has many advantages such as lower down payments which can be as low as 3.5%. In order to be able to lend with such low down payments lenders usually require additional insurance in case the borrower defaults on the loan and the lender is faced with a major loss on the property. The FHA provides the lender with Mortgage Insurance. If the lenders loses on a loan they can file a claim against this insurance and recover some if not all of their losses.
Due to the added security lenders can be more lenient in their lending guidelines. The most obvious is the reduced down payment, little or no cash reserves, lower credit score requirements and higher debt to income ratios.
History of FHA
Initially established by congress in 1934 during the Great Depression era as the Federal Housing Administration or commonly know as FHA.
According to the HUD.gov website during that era home buyers were required a 50% down payment. Most loans required three to five year paybacks and had a larger balloon payment at the end. As a result the United States was a nation of renters in that only 40% of households owned a home.
At its onset the FHA helped finance homes for veterans returning from World War II. In the years that followed the FHA assisted in the production of apartment units to help lower income Americans obtain affordable housing.
The FHA has provided relief to the housing market through the ages. In the 1980's it helped finance purchases as prices were falling during that recession. This helped the nation obtain stability in an otherwise free falling housing market.
The Mission of the FHA was to increase homeowner ship in the United States. With rates as high as 68% the FHA continues to provide Americans affordable homes through lenient mortgage loan programs.
FHA Mortgage Home Loan Refinance
If you have tried to refinance but find that you lack the equity than make sure you consider an FHA Mortgage. One of the main advantages of an FHA Mortgage is that you don't need a lot of equity to qualify. In fact most programs allow loan to values as high as 97.75%. Which means you can refinance even if you bought your home in the last year or two. Even if you have lost some of our equity due the to the decline in real estate prices and unlike conventional loans an FHA mortgage doesn't not require you to have a lot of cash reserves to qualify.
Refinancing you mortgage can reduce your monthly mortgage payments and save you thousands of dollars in interest over the life of you home loan.
FHA Mortgage Home Loan Requirements
There have been changes made in HUD's FHA Loan requirements.
- Minimum credit score is 580 (most lenders will require higher scores).
- Down Payments of 3.5% up 10% for lower credit scores
- Valid Social Security Number.
- Non-citizens must have valid work permits.
- See guidelines for more details.
FHA Mortgage Home Loan Programs
- FHA 203k Home Improvement Mortgage Loan
- FHA Streamline Refinance
- FHA Jumbo Mortgage Loan Purchase or Refinance
FHA 203k Home Improvement program
Most loans only provide permanent financing. In other words a lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a home buyer wants to purchase a house in need of repair or modernization, the home buyer usually has to obtain mortgage financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k)mortgage program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.
To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.
An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
Source:Hud.gov
More home improvement information
FHA Streamline Home Mortgage Refinance
Streamline mortgage refinance loans have recently gained popularity in that those that currently have may refinance into a lower interest rate without the traditional paperwork. This is of greater benefit to those that may underwater on their mortgage.
Basic guidelines for streamline refinance mortgages:
Streamline refinances are designed to lower the monthly principal and interest
on a current FHA mortgage and must involve no cash back to the borrower
except for minor adjustments at closing not to exceed $500. A mortgage on a principal residence may be refinanced to a shorter-term
mortgage, provided the monthly principal and interest increases no more than
20%. Any increase exceeding 20% requires a credit review.
The existing loan, including subordinated financing, must be seasoned for six (6)
months with an acceptable payment history (i.e., no late payments of 30 days or
beyond).
- There are credit or no credit report mortgage options
- Streamline refinance mortgages can be insured with or without an appraisal
- Streamline refinances by investors or for secondary residences may only be made
without an appraisal. - Repair costs may not be included in the mortgage amount. FHA does
not require repairs on streamlined mortgage refinances
with an appraisal
FHA Jumbo Mortgage Home Loan
In some areas a loan amount of $417,000 won't buy an entry level home. As a result loans in this price range were not being serviced by a lot of lenders. In recent years it was almost impossible to obtain financing for a jumbo loan. In order to stabilize the housing market FHA started to offer larger loan amounts after the passing of the Economic Stimulus Act of 2008. This has brought some stability in areas where prices are above the national average.
Please fill out our contact form today to get an interest rate on an FHA Jumbo Mortgage Loan.
If your loan exceeds any of the following amounts then you may need a Jumbo FHA Mortgage.
| 1-unit | $417,000 |
| 2-unit | $464,449 |
| 3-unit | $561,411 |
| 4-unit | $697,696 |
FHA Home Mortgage Loan Terms
FHA Mortgage loans have a variety of payment terms available here are a few:
- 30 year fixed mortgage
- 15 year fixed rate mortgage
- 5 Year ARM mortgage
- 3 Year Arm mortgage
FHA Mortgage Home Loan Down Payment Requirements
One the great benefits of an FHA mortgage home loan is the reduced down payment requirements. Currently most areas only require 3.5% down on the purchase of a primary residence.
FHA Mortgage Home Loan Detailed Guidelines
Click here to see detailed FHA Mortgage Loan Guidelines
Location
CA
United States