FHA Loan Programs
The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States. It is the largest insurer of mortgages in the world; insuring over 34 million properties since its inception in 1934.
FHA loans are a great option for borrowers that do not have a lot of cash on hand for a down payment and may need some flexibility in qualification guidelines.
Features include:
- low 3.5% down payment
- most of your closing costs and fees can be included in the loan
- low monthly mortgage insurance
- no maximum income/earning limitations (there are investor overlays to this guideline)no cash reserves if loan meets FHA guidelines
- minimum FICO score 640 (with investor overlays)
- no landlord rating required
- gifts are acceptable
- seller credits are allowed
- non-occupant cosigners okay to help qualify
- fixed rate and ARM loans available
FHA Streamline Refinance
If you already have a FHA Mortgage and you are current on your payments and in good standing, then a Streamline Refinance may be a great option for you to lower your interest rate and monthly payments.
Features include:
- appraisal usually not required
- very little paperwork
- no credit check, income verification, employee verification, or underwriting fee
- easily increase or decrease the length of the term of your existing loan
- little or no out-of-pocket costs
Please note: Cash-out is not an option on this type of refinance and you must have opened your current loan at least six months prior to refinancing.