FHA
Home Loans / Purchases
No Social Security number required
FHA HOME LOANS
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What
is an FHA Loan? What does is Stand For?
FHA stands for
Federal Housing Administration, FHA is
part of HUD or Housing and Urban Development.
The Federal Housing Administration was
established in 1934 to advance opportunities for
Americans to purchase homes. FHA
provides private mortgage lenders with mortgage
insurance, the FHA gives them the security they
need to lend to first-time buyers who might not
be able to qualify for conventional loans. FHA
Loans are a
government
backed home mortgage loan that only requires 3%
down payment. FHA Loan Rates are fixed for up to
30 years.
FHA Home Loans
were created by the federal government to
provide affordable housing financing for
qualified borrowers. Down
Payment Assistance Programs (DAPS) are loan
programs designed to assist first-time home
buyers with the required down payment and
closing costs required by the FHA loan program.
Government
backed Loan means that you pay 1.5% up front
mortgage insurance (MIP) & hud covers the loan
if you are foreclosed on up to the amount over
80% of the value that is still owed.
The
FHA loan generally helps low income, first time
buyers afford to buy a home. FHA does
not actually lend the money. They insure
100% of a loan amount that a lender funds,
assuming that the loan conforms to FHA
guidelines.
FHA loans
are home mortgage loans, they are the easiest to
qualify for. The FHA loan requirement guidelines
for loan qualification are the most flexible of
all mortgage loans that require less than 4%
down payment.
FHA insured Home loans require mortgage
insurance to protect lenders against losses that
result from defaults on home mortgages.
FHA Loan Borrowers must provide proof of income sufficient to demonstrate the ability to pay the mortgage. FHA guidelines are more relaxed, for example, a bankruptcy, which was unloaded at least 2 years, the use of other forms of credit (utilities, cable TV, auto or medical insurance premiums, caring for children, school fees, furniture or appliance store accounts) Place of traditional credit, and higher ratios of debt to income. FHA interest rates are extremely competitive with conventional rates.
FHA Home Loan Qualification If
you meet the credit requirements, and can afford
the mortgage loan payments, and use the home
as a primary residence you can obtain an FHA
Home loan.
FHA Loan Income
Ratio - 29% of your income towards
housing costs and 41% towards housing expenses
and other long-term debt.
The borrower must have 5% of its
own funds for the payment and 2 months reserves
of the deposit. Closing costs should be paid by
the borrower. Borrowers who meet Fannie Mae guidelines are rewarded with an interest rate slightly lower than an interest rate FHA.
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FHA Loan Program
- New purchase Or refinance
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FHA Loan down
payment can be a gift from a family member,
relative, or non-profit organization
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FHA Loans are
available on most property types, single
family homes, duplex's, triplex, Fourplex's
FHA HOME LOANS
Seller can contribute more on a FHA Loan – Up
to 6%
Borrower can obtain a gift from a relative –
Borrower can obtain 6% of the sale price from
Nehemiah, Ameri-Dream, these are non-profit
agencies approved for gift/down-payment
assistant programs with FHA Loans
FHA
LOAN BENIFITS
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| FHA |
| | Maximum Loan Limits per County
- VARIES | Yes |
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FHA Mortgage insurance included in loan | Yes |
| | *Maximum purchase loan
on an FHA | 97% |
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FHA Loan
Interest Rates depend on your Credit Score | No |
| | Seasoning requirement for bankruptcy | 2+ yr | | | Seasoning requirement foreclosure | 2+ yr |
| | Open Collections | None |
| | Drop mortgage insurance with equity | No |
| | Non-verified (stated) income programs | No |
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FHA Streamline refinance LOAN | Yes |
| | Non-occupant cosigner | Yes |
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FHA Stream line Refinance
- FHA Requirements
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