FHA LOANS

FHA loans can be used for many different types of loans. Whether you are buying your first home, fixing up an investment property, or remodeling your current home, the FHA can help you. Since 1934 The Federal Housing Administration has been helping people to become homeowners. It is important to note that the FHA is not a lender; they simply insure your loan so that lenders can offer you better rates. All that is needed for your down payment is as little as 3% of the purchase price of your home, and most closing fees can be included in the loan.

Advantages of an FHA Home Loan Refinance or Purchase:

• Pay as little as 3.5% of the purchase price for your down payment (Zero Down with Downpayment Assistance)
• Downpayment Assistance Programs which allow for no money down from the buyer
• Manufactured Homes and Condo's allowed
• Get Cash Out for Home Improvements, Vacations or College Tuition
• Lower your monthly payments
• Consolidate High Interest Credit Cards and Installment Loans
• Payoff outstanding judgments and tax liens
• Improve monthly cash flow
• Easy Qualification
• Possible Tax Advantages
• No Closing Costs Options
• Problem Credit or Discharged Bankruptcy Accepted

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 homebuyers 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