Not sure if your current finances will let you qualify for a mortgage? An FHA mortgage could be your solution. Run by the Federal Housing Administration, FHA home loans were created to make it easier for home owners to qualify for a loan- whether to buy a home or refinance your mortgage.
Who is an FHA Loan Best For?
FHA home loans can benefit almost all home buyers and refinances, who don’t want to tie up a lot of cash in their homes. FHA mortgages are great for people who desire a secure government-insured home loan, while also needing to finance more than 80% of their home value. Check in with a loan expert or call us at (800) 872-5063 to review your options and see if a FHA home loan is the best fit for you.
What Are The Benefits of a FHA Loan?
Qualifying for a FHA loan is less difficult than other loan options. With a FHA mortgage, you can buy a home with a down payment as small as 3.5% and lower credit scores.
With an FHA loan, you are able to use gifts (such as borrowed money or a monetary gift from a family member) towards down payments and closing costs.
There are no prepayment penalties with a FHA mortgage, allowing you to refinance or pay off your home early without having to worry about paying an extra fee.
FHA Streamline Refinance Program
Launched in June 2012, the Federal Housing Association announced its Streamline Refinance program. This program dramatically reduces mortgage insurance costs and does not require an appraisal of your home – even if you’re underwater on your mortgage. To qualify, borrowers must be have no late’s on their mortgage payments for the most recent six months and save at least 5% on their monthly mortgage payment (including the mortgage insurance) due to the refinance.