What are the benefits to an FHA loan?
- Lower interest rates
- Easier to Qualify
- Relaxed credit score requirements
- Relaxed income and asset requirements
- Low down payment options – as low as 3.5% down
- Easy refinancing options through the FHA streamline program
- Good option for 1st time home buyers
- No Pre payment penalties
- Gifted down payment funds are allowed
- Bankruptcy? Can Qualify after 2 years
- Foreclosure? Can Qualify after 3 years
Refinance or Purchase?
Refinancing an FHA loan is easy and convenient through the FHA streamline program.
- No appraisal Required
- No Income verification
- No credit qualifications
- Investment properties allowed
- The mortgage to be refinanced must already be FHA insured.
- The refinance results in a lowering of the borrower's monthly principal and interest payments,
or, under certain circumstances, the conversion of an adjustable rate mortgage (ARM) to a
- No cash may be taken out on mortgages refinanced using the streamline refinance process.
Purchasing a home with an FHA loan is easy.
The following types of properties are eligible:
- Owner-occupied properties at least one year old
- Attached and detached single family residences
- One- to four-family property
- Townhouses (PUD’s)
- FHA-approved condos
FHA loan limits vary based on a variety of housing types and the state and county in which the
property is located.
Loan Programs Available:
|30 Year Fix||20 Year Fix||15 Year fix|
|5/1 Arm||7/1 Arm||10/1 Arm|
What is UFMIP (Upfront Mortgage Insurance Premium)
- UFMIP is charged only once, upfront and typically financed into the loan
- UFMIP is 1.75% of the loan amount for 30 year and 15 year fixed loans
What is MIP (Mortgage Insurance Premium - Effective April 1st, 2013
- An annual premium, shown below, paid monthly, will also be charged based on the initial
Loan to Value and length of the mortgage according to the following schedule:
- 30 Year Loans MIP Fee for loan amounts <= 500
- Loan to Value Less than 95% = 1.25%
- Loan to Value Greater than 95% = 1.35%
- 30 Year Loans MIP Fee for loan amounts > 500
- Loan to Value Less than 95% = 1.50%
- Loan to Value Greater than 95% = 1.55%
- 15 Year Loans MIP Fee for loan amounts <= 500
- Loan to Value Less than 90% = 0.45
- Loan to Value Greater than 90% = 0.70
- 15 Year Loans MIP Fee for loan amounts > 500
- Loan to Value Less than 90% = 0.70
- Loan to Value Greater than 90% = 0.95