FHA Loans

FHA loans have been helping people become homeowners since 1934.

Some benefits of FHA loans are:
 

• Low down payments
• Low closing costs
• Easier credit qualifying

What does FHA have for you?
 

Buying your first home?
 

FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and FHA allows the seller to pay up to 6% of the purchase price toward YOUR closing costs.  FHA also allows for you to receive a gift from a family member that you can use for some or all of your down payment and closing costs.  FHA loans are for buyers who intend to move into the home as their primary residence.

 

Interested in having someone else pay your mortgage payment too?  FHA allows you to buy a multi-family property and rent out the other units.  Your LoansA2z Team has closed several transactions on tri-plex and 4 -plex properties allowing the buyer to occupy one of the units and collect enough rent from the other units to make the mortgage payment.  Sweet deal, indeed.
 

Want a fixer-upper?
 

Many buyers are interest in "sweat equity" loans.  FHA has about the closest thing to it.  A loan that allows you to buy a home, fix it up, and include all the costs in the same loan.  Your LoansA2z team members are 203k cert ified. This means they have been schooled and tested to make sure they know and understand the 203k process.  Not every lender can do 203k loans, and even fewer are certified.

 

Have a fixer-upper? 

 

The FHA 203k can also be used in conjunction with a refinance of a property you already own.  Looking to remodel your kitchen or baths?  The 203k refinance loan can provide all of the necessary funds to do the job and you may not even need to come out of pocket with any of the remodel costs.  refinance what you owe and add the cost of repairs - all in one loan.
 

Financial help for seniors
 

Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.  Follow this link for more information about Reverse Mortgages.
 

Want to make your home more energy efficient?
 

You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
 

How about manufactured housing and mobile homes?
 

Yes, FHA has financing for Manufactured homes, which used to be called mobile homes. Currently, FHA requires these type of homes to be affixed to a parcel of land owned by the borrower.

 

General FHA Information. 

 

FHA mortgages are home loans that are insured by the Federal Government. This insurance protects the lender from losses suffered if the home goes into foreclosure. It is not the same as hazard insurance or insurances that pay in the event the borrower dies or becomes disabled.

 

FHA allows a buyer to purchase a home with as little as 3.5% down. They tend to be more lenient on areas such as credit, funds to close and co-borrowers.

 

Most loans use a method of analyzing credit called credit scoring in the underwriting process. Studies have demonstrated a direct relationship between low credit scores and higher mortgage delinquency rates. As a result many lenders have established minimum credit scores at which they will accept loans. Unfortunately, a lack of credit, old delinquencies or incorrect information on the credit report can cause a low credit score. FHA does not have specific credit score requirements. Although a high credit score may assist in getting the mortgage approved, a low score is not automatically cause for denial. If the credit scores are low, then it is up to the borrower to demonstrate his/her ability and willingness to pay the loan back. This allows the borrower to explain the circumstances surrounding the credit difficulties and have that explanation considered in the underwriting process.

 

The underwriter on an FHA loan will review the credit and payment history of a customer concentrating on the most recent 12 to 24 months. If the customer has had a good payment record over the past 12 to 24 months they can often get approved for an FHA mortgage even when they would not qualify for Conventional financing. An experienced loan originator, like those on the LoansA2z team can help you clearly tell your story and will often make suggestions as to how to make the file more acceptable to FHA. Because of FHA's leniency, some borrowers with past credit problems elect to use FHA for loans when they have a substantial down payment rather than getting a higher interest rate conventional loan. FHA tends to be more flexible than Conventional financing in the money needed to purchase the home.