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FHA Loans

Learn About Our FHA Loan Options

FHA Loan

What are FHA Loans?

 

Backed by the Federal Housing Administration, FHA loans are extremely popular among first time homebuyers and others interested in low down payment mortgage options.  There are also FHA loans that make the construction, renovation or repair of a home affordable and easy through one mortgage loan, whether purchasing or refinancing.

 

Benefits of FHA Loans

  • Low down payment requirements
  • Low Mortgage Rates
  • May be easier to qualify for compared to other loans
  • 1- to 4-unit properties allowed
  • Available in 15, 20, 25, and 30 year fixed and adjustable-rate loan terms
  • No Pre-Payment Penalty

 

Available FHA Loan Options

  • Purchase Loans – Financing to buy a home for as little as $100 down. FHA guidelines also allow for the down payment to come from gift funds and for seller-paid closing costs up to 6% of the purchase price
  • Refinance Loans – If you are moving from one FHA loan into a new FHA refinance, you may qualify for a Streamline Refinance that has reduced fees and a more simplified process

  • Construction Loans – FHA new construction loan programs allow for costs of the lot and construction of your home to be included in the financing, whether you’re purchasing or refinancing your home
  • Renovation Loans – FHA renovation loan programs allow the remodeling or repair costs on a property in need of repairs or renovations to be included in the financing, whether you’re purchasing or refinancing your home

 

Available FHA Loan Programs

FHA 203(b):  The FHA 203(b) mortgage is the standard FHA loan used to finance the purchase or refinance of primary residence.  As little as 3.5% down allowed on a purchase and can borrower up to 97.75% on a refinance.

FHA Streamline Refinance:  The FHA Streamline Refinance provides homeowners with a simplified, low-cost refinancing option when refinancing a FHA loan to a new FHA loan.  The FHA Streamline Refinance requires much less documentation when compared to a standard purchase or refinance mortgage, has an easier underwriting process, an appraisal may not be needed, the costs of energy-efficient improvements can be included, and there are less closing costs.

FHA $100:  This specialty FHA mortgage was created to remove some of the barriers to home ownership and make it easier to purchase HUD homes, with only a $100 down-payment.  The FHA $100 can be used in conjunction with the all of the FHA Renovation Programs.

FHA Good Neighbor Next Door:  The FHA Good Neighbor Next Door Loan Program is a unique mortgage option that allows School Teachers, Emergency Medical Technicians (EMTs), Firefighters, Police Officers and other Public Service Workers to buy a HUD owned home at 50% off the list price.  The FHA Good Neighbor Next Door Loan Program can be used in conjunction with the FHA $100 Loan Program and the FHA Renovation Loan Options.

FHA 203(b) Repair Escrow:  The FHA 203(b) Repair Escrow Program allows homebuyers to purchase a HUD home that may need minimal repairs and include up to $10,000 for the cost of improvements, all in one loan.  The FHA 203(b) Repair Escrow Loan Programs can be used in conjunction with other FHA loan programs to purchase a HUD home.

FHA 203(h) For Disaster Victims: The FHA 203(h) Loan is a specialty FHA loan program that provides up to 100% financing to help victims of disasters purchase new properties or rebuild after their homes have been substantially damaged.  Available to homeowners, who have incurred property damage, and renters, who have been displaced, due to a disaster.

FHA 203(k) Limited Renovation:   The FHA 203(k) Limited Home Renovation Loan finances both the purchase or refinance of a home, plus up to $35,000 towards the cost of repairs, upgrades, or updates to the property, all in one loan.  The FHA 203(k) Limited Home Rehabilitation Loan is intended for smaller projects and those that do not include structural repairs.

FHA 203(k) Standard Renovation: The FHA 203(k) Standard Home Renovation Loan is a mortgage that provides financing of both the purchase or refinance of a home, and the cost of repairs, upgrades, or updates to the property. The FHA 203(k) Standard Home Rehabilitation Loan is intended for larger projects and those that include structural repairs.

FHA One-Time Close:  The FHA One-Time Close (OTC) Construction Loan is a product that allows borrowers to combine financing for a lot purchase or refinance, and the construction and permanent financing into one loan. Ideally suited for borrowers who are purchasing new construction, the FHA One-Time Close Construction Loan offers the benefits of low money down financing, competitive interest rates and one closing for all financing.

 

How do I qualify for an FHA Loan?

Qualification requirements will vary depending on which type of FHA loan you apply for, but will be based on several factors including:

  • Credit history and score
  • The amount of income you earn
  • The amount of your other debts
  • How much equity you will have in the property
  • Home must be used as your primary residence
  • Loan amounts are restricted to the FHA loan limits for the county in which the property is located

 

Have questions?  Give us a call!  One of our mortgage specialists would be happy to answer all of your questions.

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