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FHA Loans
Federal Housing Administration's Mission
The
Federal Housing Administration was started in 1934 as part of the new deal. The FHA's goals have remained the same through
out the years and they are to contribute to building and preserving healthy neighborhoods and communities, maintain and expand
homeownership, and to stabilize credit markets in times of economic disruption.
Details of an FHA Home Loan
The
FHA now offers a variety of loan programs to a large population and FHA mortgages can have fixed or adjustable interest rates.
Many find these home loans attractive because they require very small down payments, gifts can be used for down payments and
closing costs, and because the FHA regulates the closing costs. These loans also have qualifications that are easier to meet
than traditional mortgages. The FHA does not require a minimum FICO score to meet qualifications and these programs will allow
home purchase two years after a bankruptcy filing.
Energy Efficient Mortgages
Energy Efficient Mortgages,
EEMs, recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy
improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a
principal residence and incorporate the cost of energy-efficient improvements into the mortgage. The borrower does not have
to qualify for the additional money and does not make a down payment on it. The mortgage loan is funded by a lending institution,
such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD. FHA insures loans.
FHA does not provide loans.
Rehabilitation Mortgage Insurance (203K)
Section 203(k) insurance enables home
buyers and homeowners to finance both, the purchase (or refinancing) of a house and the cost of its rehabilitation through
a single mortgage - or to finance the rehabilitation of their existing home. FHA approved lending institutions which include
many banks, savings and loan associations, and mortgage companies can make loans covered by Section 203(k) insurance.
Reverse
Mortgages
Reverse mortgages are becoming popular in America. Reverse mortgages are a special type of home loan that
lets a home owner convert the equity in his/her home into cash. They can give older Americans greater financial security to
supplement social security, meet unexpected medical expenses, make home improvements, and more.
FHA Refinance Requirements
FHA has permitted streamline refinances on insured mortgages since the early 1980's. The "streamline" refers only
to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are
no costs involved in the transaction. The basic requirements of a streamline refinance are:
* The mortgage to be refinanced
must already be FHA insured.
* The mortgage to be refinanced should be current (not delinquent).
* The refinance is
to result in a lowering of the borrower's monthly principal and interest payments.
* No cash may be taken out on mortgages
refinanced using the streamline refinance process.
FHA Loan Down Payment Grants
We have grants availible to help you cover a down payment.
Please call today to discuss how we can get you money for a down payment and Closing costs.
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