A FHA mortgage allows some borrowers to qualify for the lower interest rates of a conventional loan, rather than using a higher rate sub-prime mortgage. This can save thousands in interest charges.

The FHA or Federal Housing Administration is now a part of HUD or House and Urban Development, which are responsible for making home ownership more accessible for more Americans. What is great about the FHA, is that you do not have to have perfect credit or a high paying job. The payments are usually smaller than bank made loans, as well as the down payment needed towards a home is also much smaller than what would normally be accepted.

Qualifying for a FHA loan is surprisingly very easy! You must be able to meet the minimal credit requirements, plan to use the home as a primary residence, and of course can afford to make the monthly mortgage payments, which are often comparable to rent payments. You must be able to show a steady income for three years and have paid your bills on time. There is no limit on the amount of income that is needed to qualify.

 The FHA Loans FHA Refinance(HARP) has been designed to complement Making Home Affordable by helping homeowners who have not been delinquent on their monthly mortgage payments, but are still unable to refinance and take advantage of the historically low mortgage rates due to the declining home values, thus raising their current loan-to-value (LTV) over 80%.

FHA helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

The FHA also limits fees that can be charged to the borrower. For example, the loan origination fee cannot surpass 1% of the mortgage amount. FHA loans are a very attractive mortgage option. Unlike a private mortgage, FHA loans are designed to cut you a major break so you can buy a home.

President Obama's $75 Billion Making Home Affordable housing stimulus program will assist as many as 9 million homeowners by either making their monthly mortgage payments more affordable, or by stemming foreclosure

FHA Loans FHA Refinance loans will allow the flexibility necessary to make the refinance process quicker and more cost-effective for both the borrower and the lender. All HARP loans require less documentation for underwriting, and some HARP loans will not require an appraisal.

 

Mortgage lending down 1.5 pct as rates inch up Applications for home loans dipped last week as mortgage rates ticked up slightly from the lowest level in decades. The Mortgage Bankers Association says overall applications fell 1.5 percent from a week earlier. Applications to refinance home loans fell 3.1... Mortgage - Mortgage Bankers Association - Refinancing - Financial Services - Business Extending Credit to Self-Employed Borrowers; FDIC Sells Delinquent Loans ... - MortgageNewsDaily.com FreeRateUpdate.com Extending Credit to Self-Employed Borrowers; FDIC Sells Delinquent Loans ... MortgageNewsDaily.com Pinnacle Capital told its brokers that the minimum trade line requirements for FHA and VA loans have been removed. It was not a good day for rates on ... FHA Mortgage Refinancing ProgramSheridan Media (press release) Federal Housing Administration Short Refinance Program–FHA Underwater ...Red, White, and Blue Press (blog) What's Right for Me, an FHA or Conventional Mortgage? Cost ComparisonFreeRateUpdate.com Stock Markets Review -Housing Wire -MSN Money all 27 news articles »

Loan Facts - Rehabilitation Loans - SEE: Section 203(k) FHA Loan -