An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA), which is the largest insurer of residential mortgages in the world. These loans are very popular, especially among first-time homebuyers because they allow for very low-down payment options. You can get into a home with just 3.5% down!
What are FHA Loan Requirements?
While FHA loans give opportunities to people with lower income and lower credit scores, there are specific guidelines that must be met.
Here are just a few:
FHA will only lend on an Owner Occupied Primary Residence
The borrower must have a steady history of employment
The borrower must have a down-payment of 3.5%. Gift funds are acceptable
The property must meet minimum standards at time of the appraisal
What are the Benefits of an FHA Loan?
Generally, FHA loans are one of the easiest mortgage loans to qualify for. The low down-payment requirement and flexibility with less than perfect credit situations allow more potential buyers to become homeowners. And the interest rates on FHA loans are generally lower than Conventional financing options!
Can I refinance my FHA Loan?
Yes! In fact there is a FHA Streamline Refinance program which allows for exactly what it says, a “streamline refinance”. You can refinance your current FHA loan without a full credit check or income verification as long as you have paid your mortgage on time over the last 12 months. There may not be a need for an appraisal either depending on your home equity and the loan balance.
How do I get approved for an FHA Loan?
The first step is to contact one of our FHA Loan Specialists.
Questions about Lendem Financial mortgage loan options? Why you should think about using a mortgage broker vs a bank? Using a Mortgage Loan Officer that has access to all sources of lending institutiuons helps people get the best loan for their situation and offers all options on the market vs the programs at one bank. Call Todd Rubick of Lendem Financial and tell him why the bank said no... If your tax returns do not show your true income, or credit is less than perfect... Full service all source lending strategies will be offered for those that need them.