Purchasing your Home with an FHA Mortgage

[ by Victoria Belle-Miller ]

Reasons to Purchase Your New Home with an FHA Mortgage!

FHA mortgages are great for current and first-time home buyers because of the multiple benefits that they offer. FHA mortgages do not have strict eligibility requirements, so you are more likely to qualify for this type of financing than with other home loans. Continue reading to find out how you can save money with an FHA mortgage!

Benefits of Purchasing a Home with an FHA Mortgage

FHA mortgages have low down payment requirements for purchases. So, if you do not have a large sum of money to put down up front, an FHA mortgage would be a great option for you. This will leave you with more money to put toward your monthly mortgage payment.

FHA mortgages are insured by the Federal Housing Administration, which allows them to feature low FHA mortgage rates. FHA mortgage rates are typically lower than interest rates on conventional home loans. A low interest rate can save you money on your monthly mortgage payment and leave you with more money for your other expenses.

Eligibility for an FHA Mortgage

The FHA does not have strict credit or income eligibility guidelines. To qualify, you must have a clean credit history of at least one year, meaning you have no delinquent payments. Most lenders will require that you have a credit score of at least 620. If you have a credit score that is lower than this, our FHA mortgage specialists can help you determine whether you can still qualify for an FHA mortgage.

FHA Mortgage Requirements

In addition to a small down payment, you must pay a mortgage insurance premium on your FHA mortgage, which is equal to 1.75% of the loan amount. You are also required to deposit up to one year’s worth of taxes and insurance into an escrow account. This ensures that your property taxes and homeowner’s insurance are paid and kept current.

You should consider applying for an FHA mortgage now before FHA requirements change. Soon, a higher down payment will be required for borrowers who have a credit score below 580, and the mortgage insurance premium is slated to increase to 2.25%.

To learn more information about purchasing a home with an FHA mortgage or to find out how to apply, contact an FHA mortgage specialist today at 1-877-264-4736.

FHA Mortgages Have Low FHA Mortgage Rates!

[ by Victoria Belle-Miller ]

Low FHA Mortgage Rates are One Reason to Finance with an FHA Mortgage

FHA mortgages are a popular financing option for borrowers because of the many great advantages they offer. FHA mortgages are available to first time homebuyers who want to purchase a new home and current homeowners who want to refinance their current FHA mortgages. FHA mortgage rates are traditionally lower than most other conventional home loans, so now is a great time to take advantage of them!

Low FHA Mortgages Rates Will Save You Money!

With an FHA mortgage, you can receive a low, fixed FHA mortgage rate. Having a low interest rate will save you money on your monthly FHA mortgage payment. As you spend less on your mortgage payments, you will have more funds available for all of your other expenses.

If you already have an existing FHA mortgage, you can refinance in order to receive a lower FHA mortgage rate. Refinancing your FHA mortgage also allows you to change the terms of your loan. You could switch from an adjustable FHA mortgage rate to a fixed rate, which would save you money over time because your rates would not increase.

How You Can Qualify to Receive Low FHA Mortgage Rates

The Federal Housing Administration insures most FHA mortgages and it does not require that you have a high credit score or a large income to qualify. The FHA does require that you have a clean credit history of at least one year. Most lenders will require that you have a credit score of at least 620 in order to qualify for the loan.

Act Now Before FHA Mortgage Rates Increase!

Right now FHA mortgages have a low down payment in addition to low FHA mortgage rates. FHA mortgage rates are currently low, but always have the potential to increase in the future. The FHA has already announced that they will be changing some of their FHA mortgage requirements, including an increase in the mortgage premium and the down payment requirement for those who have lower credit scores.

Act now to take advantage of low FHA mortgages rates and other FHA mortgage benefits. Call 1-877-264-4736 to speak with an FHA loan specialist today for more information!

FHA Streamline Refinances Help Borrowers Save Money

[ by Annie Johnson ]

A program that is available to borrowers who currently have an FHA loan is the FHA streamline refinance. This is a benefit that sets the FHA home loan program apart from most other types of mortgages. The FHA streamline refinance has been around since the 1980s as a way to help FHA borrowers take advantage of market changes without having to go through the hassle of a complete refinance.

Does my FHA mortgage qualify for a streamline refinance?
In order for a homeowner to take advantage of an FHA streamline refinance, certain criteria must be met. To qualify for the FHA streamline refinance, the mortgage that is to be refinanced must be FHA insured already and the mortgage must be current. The FHA streamline refinance must act to lower the borrower’s monthly principal and interest payments or to switch the loan from an adjustable interest rate to a fixed interest rate. With an FHA streamline refinance, no cash can be taken out on the mortgage.

FHA Streamline Refinance Details
FHA streamline refinances are aptly named because they allow homeowners to refinance their mortgages by using a streamlined or simplified process. The FHA streamline refinance allows the borrower to refinance their mortgage with reduced documentation requirements for income, credit, and employment information. Although the costs of an FHA streamline refinance are reduced, this is not a no cost loan. A borrower may have the option to eliminate out of pocket costs in exchange for a higher rate rate than they actually qualify for on their FHA streamline refinance. The costs are still present but the lender will pay them instead of the borrower in exchange for the higher interest rate.

With FHA interest rates lower than they have been in many years, it may be advantageous to use the FHA streamline refinance program. To see how much you can save or to simply speak with an FHA streamline refinance specialist, call (877)264-4736 today!

Why Should You Apply For an FHA Loan?

[ by Annie Johnson ]

FHA home loans are loans that are insured by the Federal Housing Administration. There are many reasons why homeowners could benefit by applying for an FHA loan. FHA home loans have low down payment requirements, which is perfect for first-time home buyers and others who do not have much money saved for a down payment.

New Guidelines Make it Harder to Apply for an FHA Loan
FHA loan guidelines are going to change beginning April 2010, which could make obtaining an FHA home loan slightly more difficult for some borrowers. Currently, the required up front mortgage insurance premium is 1.75% of the loan amount. Beginning in April, this is raising .5% to 2.25%. Another change that will be implemented is a minimum credit score to use the 3.5% down payment program. If a homeowner wanting to apply for an FHA loan has a credit score of less than 580, they will have to put down at least 10% of the purchase price. This should not affect most people who want to apply for an FHA home loan because the current average FHA home loan credit score is a 693.

Low FHA Loan Rates
Another reason to apply for an FHA loan is to take advantage of the low interest rates that are currently offered on this type of program. In the past, FHA loan interest rates have been higher than the rates offered on other types of financing but are now comparable to, if not lower than, other types of financing. When you apply for an FHA loan, you will not have the same rigorous credit qualifying requirements as you might on other loans, which allows for more home owners to access low rates.

FHA loans are good solutions for people who wish to take advantage of a low down payment and low interest rates. To learn about the changes in FHA loan guidelines or if you simply need additional information about how to apply for an FHA home loan, call an FHA loan specialist today at (877) 264-4736!

Should You Apply for an FHA Loan?

[ by Victoria Belle-Miller ]

Why Apply for an FHA Loan?

FHA loans are great for both first-time home buyers and current homeowners who want to refinance their current mortgages. The low down payment requirement and low interest rates make now the perfect time to apply for an FHA loan! FHA loans also have more relaxed qualification guidelines than other types of home loans, so it is easier to qualify.

pply for an FHA Loan for Purchase

An FHA loan is a great option if you are a first time home buyer who may not have a large sum of money for a down payment. One good reason to apply for an FHA loan is that the down payment can be as low as 3.5%. A low down payment leaves you with more money to put toward your monthly mortgage payment or toward your other expenses.

FHA loans are insured by the Federal Housing Administration (FHA). Because FHA loans are insured, FHA lenders are able to offer lower interest rates than on most conventional loans. With a low interest rate, you will have a lower monthly mortgage payment and spend thousands less in interest over the long term, which is another great reason to apply for an FHA loan.

Apply for an FHA Loan Refinance

There are several reasons to apply for an FHA loan refinance. With an FHA loan refinance, you can lower your interest rate or switch from an adjustable rate to a fixed rate, which will save you money on your monthly payments, as well as over time. You can also change the terms of your loan to better suit your needs, such as adjusting the repayment period in order to pay off your home faster.

Another reason to apply for an FHA loan refinance is that you can consolidate all or some of your debt into one payment and make paying off your debt a more simplified process. There is also a cash out refinance option that you can utilize which allows you to take out extra cash for personal expenses or home renovations and repairs.

Are you Eligible to Apply for an FHA Loan?

Applying for an FHA loan is easy because the FHA loan guidelines are more relaxed than on other types of home loans. You do not have to have a high credit score or a large income to qualify. The FHA requires that you have a clean credit history of at least one year and most lenders will require that you have a credit score of at least 620.

If you would like more information about how to apply for an FHA loan, please contact an FHA loan specialist at 877-264-4736 today!