FHA Loans

 

 

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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

Rules:

  • 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 
    fixed-rate mortgage.
  • 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:

MIP 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