FHA Home Loan Advantages:

The FHA home loan insurance guarantees private FHA approved mortgage lenders like us against loss making it easier for homebuyers to qualify. FHA home loans are backed by the Government and insured by HUD. The Government backed  FHA home loan is a safe secure way to purchase or refinance a home!

FHA home loan advantages include:

• The easiest home loan to qualify for
• Lower Interest Rates
• Gift Funds OK for  down payment  OK
• Seller paid closing cost.
• No prepayment penalty
• No Reserves required.
• Higher loan to values finance more of the purchase.
• Non Occupying Co-Signer is ok for FHA loan qualifying
• No Minimum Credit Score or credit score needed to qualify for an FHA Mortgage
• Use 3 Non Traditional Trade lines to qualify including (Rent, Electric, Cable, phone, etc.)
• NO Minimum or Maximum Income limits
• Fully Assumable
• FHA 203-K to finance the purchase and Rehab of fixer upper homes all with one FHA mortgage
• NO pre-payment penalty with an FHA Loan
• You Do NOT have to be a first time home buyer to use the FHA mortgage program!
• Purchase a Single Family, Condo, Town house and Mobile homes.
• 30 year and 15 year fixed FHA mortgage loans

Have Questions? Fill out a Quick Response form or (Apply Now).

FHA down payment, interest rates, payments rates and FHA mortgage program guidelines and minimum fico score requirements are subject to change without notice and are not guaranteed due to fluctuating mortgage market conditions.

FHA Loans for home buyers

The FHA Home Loans were created with the home buyers in mind. FHA home loans offer home loan applicants the same opportunities regardless of income or credit. When determining FHA loan approval, underwriters do not consider credit score. FHA loans are granted upon a common sense approach to lending rather than a credit score driven approach. For example, homebuyers that can prove on time payment history for the last twelve month will most likely qualify for an FHA home loan even though they may have a low credit score. The FHA loan is about helping home buyers become homeowners based upon their resent payment history and not credit scoring. This is why the FHA home loan truly makes purchasing a home easier than any other home loan program available today.

Why FHA to Buy a home?

(HUD) also know as the Housing and Urban Development was formed in 1965. Within HUD operates the (FHA) which is short for the Federal Housing Administration in charge of the FHA home loan insurance program. The primary focus of HUD is administering government FHA home loan programs. FHA insurance allows FHA home loan applicants who might otherwise not qualify for a conventional home loan qualify for an FHA home loan because FHA insures the FHA home loan lender against loss. Because FHA insures the private mortgage lender against loss, FHA lenders are willing to lend up to 97% of the purchase price and home loan applicants have the ability to purchase a home with little or no money down. FHA home loans have the lowest down payment options and are more flexible than any other home loan program making it easier for homebuyers to qualify! FHA loans are popular with first time home buyers and can be equally attractive to moving up homebuyers. And, FHA offers a rehabilitation home loan that you simply will not find in any other home loan program. Homebuyers needed a FHA 203K home improvement loan can purchase a home and include all of the home improvements and upgrades into the purchase. With an FHA home loan you can borrow up to 97% of the purchase price or the appraised value with only a 3% down payment. And, FHA home loans allows the down payment to come from a family member, grant or non profit.

What Is the FHA home Loan Program?

In 1937, congress created the Federal Housing Administration (FHA home loan) in order to provide a better and broader opportunity for the average American family to become home owners.

Before the FHA home loan ownership was achieved with excessively large down payments of 30% to 50%. In the past these home loans were acquired through the local community bank under restrictive terms and conditions that the majority of Americans simply couldn't afford. Enter, the FHA Loan Program!

 The act of congress which created the FHA home loan to stimulate the economy and get homebuyers into homes. The FHA home loan has opened the door to home ownership for  millions of Americans. The FHA home loan  launched a revolution in the mortgage lending industry. The FHA home loan is one of the few things in history congress actually got right!

Concerning the FHA home loan

When considering an FHA loan for your next home purchase or refinance, there really are a number of issues which you should take into consideration. One of the most important issues relevant to the FHA home Loan is in fact credit. While your credit score is no factor, your credit quality is. The realty is , you're better off having no credit history, than having recent bad credit history. For FHA underwriter to approve your FHA home loan request they will require written explanation into what caused your credit problems within the past 12 months to ensure you have addressed and rectified these financial issuers.

The next issue to give consideration when applying for an FHA home loan is the FHA home loan limits. The fact is, there are not any Jumbo or Super Jumbo FHA Home loan programs. FHA Home loans are not designed for these types of luxury properties, so you'll want to be certain your looking for a home within the FHA Lending limits.

With a refinance or new purchase using an FHA home loan you will hear about UFMIP and MIP. Your UFMIP is your "upfront mortgage insurance premium" and your MIP is your "mortgage insurance premium" paid monthly. These are your (FHA mortgage insurance premiums) which will add to the costs of the FHA home loan. The UFMIP, is financed by the FHA mortgage lender into the loan amount. And your MIP (monthly insurance premium) is added to the monthly payment of your FHA home loan. Before you get to discouraged, keep in mind that PMI (private mortgage insurance) not provided by the Federal Government is twice as expensive then FHA's MIP in your mortgage payment. Further, the FHA's MIP does NOT protect you, it protects only the FHA mortgage lender incase you default on the FHA home loan. However, only with an FHA home loan comes the benefits of qualifying with very little money down and the government protections you will NEVER find with a conventional or subprime home loan.

When home loan rates are going up, typically, the FHA home loan rates are lower. Why? It traditionally home loan takes 3 to 5 business days for the rates to react to the market. So, when rates are going down, naturally, you have to wait before locking an FHA home loan to give them time to catch up. Otherwise, FHA home loan rates are typically as low as traditional interest rates in the conventional loan market.

We've taken time to attempt to help you understand all of the real negatives associated with the FHA loan. The fact is, the FHA home loan program offers home buyers and homeowners, far more than any other home loan program today. Most importantly, the FHA home  loan program offers you security and piece of mind. Something you can't put a price on. Have Questions? Fill out a Quick Response form or (Apply Now) for a pre approval.

 FHA home loan Buyers Cash investment

To purchase a home only requires a cash investment of 3.5%. If you do not have the 3.5% down payment requirement. FHA permits you to receive the funds from a family member, non profit or grant. All FHA down payment funds for a FHA home loan down payment must be verified, sourced and documented. There are many Acceptable Down payment sources including the following:

Savings and Checking Accounts– The most common source for an FHA home loan down payment source comes from a buyers checking or savings account. All savings and checking accounts can be used for the down payment as long as they can be sourced or seasoned for at least 60 days. FHA loans allows allow funds to be seasoned though verification of deposit and are sufficient as long as the (VOD) is accompanied with the most recent bank statement.

 Gift Funds– FHA allows the home loan applicants to receive an outright gift if the donor is the borrower’s relative, the home loan applicants employer or labor union, a charitable organization, a governmental agency or public agency. All FHA gifts for down payment must be sourced.

Sales Proceeds- FHA home loan applicants can use the net proceeds from an arms-length sale of real estate owned may be used for the cash requirement to qualify for an FHA home loan. A fully executed HUD-1 Settlement Statement must be provided as satisfactory evidence of the cash sales proceeds accruing to the borrower.

Collateralized Loans- FHA home loans allow down payment funds to be borrowed from stock accounts, bonds, life insurance policies, loans secured by 401K, etc.

Trade Equity- FHA home loans allows the mortgage applicants to trade his or her real estate to the seller as part of the cash investment. The amount of the FHA home loan buyers equity contribution is determined by subtracting all liens against the home being traded along with any real estate commission from the lesser of that properties appraised value or sales/trade price.

Sale of Personal Property- If the FHA home loan applicant intends to sell personal property items (cars, recreational vehicles, stamps, coins, baseball card collections, etc.) to obtain the FHA down payment required for closing, the FHA home loan applicant must provide a satisfactory estimate of their worth, in addition to conclusive evidence the items have been sold.

 Employer Assistance Plans- If the FHA home Loan applicants employer, to attract or retain employees agrees to pay the FHA loan applicants FHA down payment and closing costs, the FHA home loan insurance premium, and any portion of the FHA required cash investment is considered employee compensation and no adjustment to the maximum FHA home loan amount is required. If the FHA loan applicants employer provides this benefit after loan settlement, the FHA Home loan applicant must provide evidence of sufficient cash for closing. A salary advance, however, cannot be considered as assets to close since it represents an unsecured loan.

Employer's Guarantee Purchase Plans- If the FHA home loan applicants employer guarantees the purchase the borrower's previous residence as the result of relocation, the FHA home loan applicants must submit evidence of the agreement and the net proceeds must be guaranteed.

Stocks and Bonds- An FHA home Loan applicant can use monthly or quarterly statement provided by the stockbroker or financial institution managing the portfolio may be used to verify the value of these securities. FHA will allow these as long as FHA home loan applicant provides actual receipt of funds so the down payment funds verified and documented.

Savings Bonds, Etc- Government issued bonds are counted at original purchase price, unless eligibility for redemption and redemption value are confirmed. Actual receipt of funds at redemption must be verified.

 IRAs, Savings Plans est- FHA permits FHA home loan applicants to use assets such as IRAs, savings plans, and 401ks, etc for FHA down payment requirement. This may be included in the underwriting analysis up to only 60 percent of value unless the FHA home Loan applicant provides conclusive evidence that a higher percentage may be withdrawn after subtracting any federal income tax and any withdrawal penalties. Evidence of redemption is required.

Cash Saved At Home- FHA home loan applicants may use saved cash at home as a down payment as long as the borrower to explain in writing how such funds were accumulated and the amount of time taken to do so. The FHA home loan lender must determine if the FHA home loan applicant could have reasonably accumulate the funds based on the borrower's income stream, the time period during which the funds were saved. The funds must then be deposited into a financial institution and verified.

Rent Credit- FHA home loan applicants may use a rent credit towards qualifying for an FHA mortgage. In addition, a renter whose cumulative amount of the rental payments exceed the appraiser's estimate of fair market rent may be considered accumulation of the FHA home loan applicants cash investment. Both the Rent with Option agreement and the Appraisers Estimate of market rent must be included in the endorsement package. Conversely, if the sales agreement reveals that the renter has been living in the property (or one owned by the seller) rent-free, or that an agreement was made allowing the renter to occupy at a rental amount considerably below fair market value in anticipation of eventual purchase of the property, this situation must be treated as an inducement to purchase with an appropriate reduction to the FHA home loan. Exceptions may be granted in situations, such as when a builder fails to deliver a property at an agreed-to time and then permits the FHA home loan applicants to occupy that or another home for less than rent temporarily until construction is complete.

 Sweat Equity- FHA home loan applicants can perform labor and provide materials furnished by the buyer before closing, on the property being purchased to be used towards the FHA required cash investment.

Commission from Sale- FHA home loans allow a mortgage applicants if licensed to a real estate commission from the sale of the property to use the commission as the FHA home loan cash requirement with no adjustment to the maximum mortgage required. A family member entitled to the commission also may provide gift funds towards the FHA home loan down payment requirement.

Disaster Relief Grants and Loans- Grants or loans from state and federal agencies such as FEMA that provide immediate housing assistance to FHA home loan applicants displaced due to natural disaster may be used for the FHA down payment requirement. Secured or unsecured disaster relief loans administered by the (SBA) Small Business Administration also may be used towards the FHA home loan down payment requirement. However, if the SBA loan will be secured against the home being purchased, it must be clearly subordinate to the FHA insured home loan. And, any monthly payment arising from such a loan must be included in the FHA guidelines for debt to income ratios.

Cash Accumulated with Private Savings Clubs- FHA loans allow FHA home loan applicants to use non traditional savings methods as long as they can be verified. Some FHA home loan applicants may choose methods of saving money by making deposits into a private savings club. Often, these private savings clubs pool funds for use among the membership group. If an FHA home loan applicants claims that the cash needed to close the FHA home loan from savings held with a private savings club, the FHA home loan applicants must be able to document the accumulation of those assets with the club. While such clubs are not supervised banking institutions, the clubs must (at a minimum) have receipts or account ledgers from the club, verification from the club treasurer, and identification of the club so that the lender can revivify the information provided. The FHA home loan lender must be able to determine that it was reasonable for the borrower to have saved the money claimed and that there is no evidence these funds were borrowed or expectation of repayment.

Have Questions? Fill out a Quick Response form or (Apply Now).

FHA down payment, interest rates, payments rates and FHA mortgage program guidelines and minimum fico score requirements are subject to change without notice and are not guaranteed due to fluctuating mortgage market conditions.