FHA (Federal Housing Administration) Loan Refinance
FHA is not a lender; they simply insure your loan so that lenders can offer you better rates. FHA loans can be used for many different types of loans. Whether you are refinancing your upside down mortgage loan in this troubled housing market to a stable fixed rate(30, 40,50 years),or buying your first home where your down payment is as little as 3% of the purchase price of your home (most closing fees can be included in the loan). Or just fixing up an investment property, and/or remodeling your current home, the FHA can help you. Since 1934 the Federal Housing Administration has been helping people to become homeowners. A loan from FHA insures that lenders will be provided with a payment, even if the home buyer defaults. (H.R. 3221 Housing Reform Bill, FHA Loans)
March 2008 FHA increases mortgage limits. That limit was bumped to a minimum of $417,000 or 125% of median sales price, whichever is greater with a top end of $729,750.
FHA Blemished Credit History
Is your credit less than perfect? FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.
FICO scores can be lower than those for a conventional loan.
Bankruptcy. You can obtain an FHA loan two to three years from the date of your bankruptcy discharge, as long as you’ve maintained good credit since your debts were discharged.
Foreclosure. If you keep your credit in excellent shape since a foreclosure, an FHA loan will be available to you two (2) to three (3) years from the final date of your foreclosure.
Which type of Loan is Right for You?
FHA Cashout FHA Streamline
FHA Home Loan Guarantee Program
FHA loans offer a loan guarantee for mortgage companies. If you acquire a FHA loan to purchase a home, the FHA is not actually lending money to you, the buyer; the FHA simply guarantees the lender in case you, the borrower, default on your mortgage payments.
You can pay as little as a 3%of the purchase price of your home for your down payment, and finance your closing costs with your mortgage loan. The FHA can guide you toward programs that require no down payment.
You can purchase a home in need of repairs and finance the repair costs with the mortgage. This way you can make the necessary repairs immediately without having to come up with the money yourself.
You can purchase manufactured homes and condominiums with a FHA loan.
You can finance the cost of energy-efficient repairs with the mortgage.
A FHA loan can allow you to include the costs of your home improvements in your loan. With HUD’s 203(k) program you can purchase or refinance a home that needs improvements and include all repair and improvement costs in the loan.
FHA loans can even help you to make your home more energy-efficient. The FHA recognizes that with a more energy-efficient home, the homeowner can afford to pay a higher mortgage; therefore, the FHA can also include these types of repairs in the original loan also.
Learn About the FHA Energy Efficient Program
FHA loans are funded by financial institutions such as mortgage centers or banks. The Federal Housing Administration is a branch of the Department of Housing and Urban Development and provides lenders with insurance on your loan. The FHA is here to help you become a homeowner. Both the FHA and HUD also offer mortgage insurance for those who are part of the VA Home Loan Guarantee Program. Contact one of our specialists to see if you are eligible for this type of loan.
