The Federal Housing Administration (FHA) does not directly make loans to borrowers but rather provides insurance on loans made by government approved FHA lenders. FHA-insured mortgages can be obtained for single-family, multi-family, manufactured and mobile homes.
FHA loans differ from conventional loans in a number of ways. The down payment required for a FHA loan is much lower than a conventional mortgage, and can even be a gift from a family member or an approved down payment assistance program. FHA loans also have lower credit requirenments than conventional loans, making then more available to a wider range of potential homebuyers.
Refinance with the FHA
Use the great flexibility of the 95% cash-out refinance of the FHA to get cash to pay off higher-interest debts.
If you have an ARM that is adjusting upwards, you can refinance your mortgage up to 96.5% of your home's value.
Even if you are facing foreclosure there is a FHA program for you. "HOPE for Homeowners" allows borrowers to refinance their existing mortgage into a 30 year fixed mortgage, even if they are upside down in their current mortgage.
New higher loan amounts across the country.
The FHA recently raised the loan limit on FHA loans across the country and that's good news for you.
Is FHA for you?
Is your ARM adjusting and you need to refinance to a low-cost fixed-rate mortgage?
Do you want to get cash out of your home?
Do you want a fast approval?
Do you have a lower credit score or lower household income?
Are you purchasing a home and have a low down payment?
If so FHA is the best option
The Federal Government has designed the FHA programs to be easy to quality for regardless of your prior credit history. The key essentials to qualifying for a loan are
Steady employment and verifiable income.
Credit scores in the 500's are acceptable
Previous bankruptcies are ok with re-established credit
Previous foreclosures are ok with re-established credit
Buying a home with a FHA loan is easier than you may think!
FHA allows a minimum of 3.5% down payment, in fact the entire down payment can be a gift.
FHA will allow the seller to contribute 6% of purchase price toward closing costs.
FHA will has no reserve requirenments, so you don't have to have a certain amount of assets in the bank.
FHA allows for co-signers that aren't going to live in the property.
FHA backed loans are assumable by a qualified buyer.
FHA backed loans are fixed mortgages with fixed payments, and have no prepayment penalties.
Refinancing with an FHA loan
You can refinance up to 96.5% of your home value.
FHA even offers up to 95% cash-out, the highest amount of any of our home loans.
There are even FHA programs designed to help home owners who are behind on their payments, upside down in their current mortgage or facing foreclosure.