FHA Morgages
What is an FHA Mortgage Loan?
FHA loans are mortgages that are insured by the Federal Housing Administration. These loans are available through banks and lenders that are federally qualified.
Who can benfit from an FHA Mortgage Loan?
Virtually anyone looking to purchase or refinance a home can qualify provided that certain criteria is met. There aren’t limitations like being a veteran (for VA loans) or being a minimum of 62 years of age (for reverse mortgages).
These qualification include:
1. FHA Loan Amount Limits – loan limits depend on whether the loan is for a single family or a multi-unit property.
2. Credit History – although slightly more lenient than conventional loans, a good credit history
3. Mortgage Insurance Requirements – FHA required both up front mortgage insurance (paid at the closing) and monthly mortgage insurance payments depending on the down payment
4. Income Ratios – FHA requires that a borrower’s debt to income ratio should be less than 41% of your gross income
What are the benefits Of FHA Mortgages
For starters, FHA mortgage loans allow people who traditionally wouldn’t qualify for a home with conventional loan programs to purchase a home due to higher debt ratios and lower credit restrictions.
The other benefit of purchasing a home through an FHA mortgage loan is the fact that the down payment requirement is only 3.5% of the purchase price which can come from multiple sources, not just the buyer.
A benefit of refinancing into an FHA mortgage is the ability to finance up to 95% of the appraised value which isn’t normally allowed for other types of loans.
What’s my next step?
All you have to do is call our office at 847-487-9915 or use the form on this website and schedule an appointment to get assessed on the best loan suitable for your situation. Best of all, its absolutely free with no obligations.
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