National FHA Home Loan Mortgage FHA 203k & 203h loans| Streamline and cash out refinance serving all buyers across the U.S. – Miami, Tampa, Chicago, Los Angeles, San Francisco, Denver, Houston, Nashville, Dallas, Atlanta, Las Vegas, Charlotte, Seattle, Boston, Philadelphia, St. Louis, Kansas City, Phoenix, Little Rock, Memphis, Indianapolis, Portland
FHA Home Mortgage
Please note before applying, the FHA home loan now requires a min 620 credit score and NO manufactured or mobile homes permitted. Please see the helpful video below for more information.
FHA stands for the Federal Housing Administration. FHA was created in 1934 to help Americans realize the dream of Homeownership. FHA was absorbed into HUD in the 1960s and is now known as HUD-FHA.
There are a great many benefits to the FHA loan program. FHA loans are insured by the US government. They provide lenders with greater security than they get when they write traditional loans. HUD sets the basic FHA guidelines for lenders, however, lenders are able to add on their own specific requirements. This is why not all lenders are able to offer FHA loans to the same individuals. It is very important that you deal with a company well versed in FHA loans and that knows exactly how to take advantage of all of their great features. Please see the FHA Loan Limits per county here.
Listed below are some of the prime benefits of the FHA program:
- FHA has a low down payment of 3.5% ( except for the HUD $100 down program seen below)
- 1.75% Up Front Funding Fee (rolled into the loan) and 0.85% monthly mortgage insurance for 2018. MI goes lower with down payments greater than 3.5% – see chart below.
- Low mortgage insurance coverage (typically lower than conventional mortgage insurance)
- Co-signers (including non-occupant co-signers) are allowed
- No income limitations at all. However, income must be fully documented
- No approved zoning requirements
- Mobile Homes, lot loans, and vacant land is not permitted.
- 85% loan to value on FHA cash out refinance permitted in most cases.
- No need to pay off medical or small collection accounts (letters of explanation are used)
- No prepayment penalties EVER
- Security of a 30 year fixed mortgage. Borrowers can also choose other fix rate or adjustable rate terms.
- 6% seller contribution is allowed for closing costs with FHA
- Ability to use non-traditional trade lines to qualify (phone bills, light bill, electric bill, cell phone bill, etc..)
- High debt to income ratios over 50% often allowed with compensating factors (great credit, etc)
- Compensating factors such as length of time on the job or funds (savings) in reserves help overlook negative factors
- No minimum bank savings reserves required from buyer
- Gifts funds are allowed from family, friends, work, or other interested parties
- FHA is great for first time home owners and public service workers like Teachers, Police, Firefighter, etc. FHA loans also allow buyers with challenged credit access to low-cost secure fixed rate mortgage.
2018 FHA MIP chart based on loan amount and down payment:
If you are a home buyer located in USDA rural eligible area, please be sure to also check out the 100% USDA rural loan page. The USDA mortgage offers 100% financing in selected locations around the U.S. – even many locations in Florida, Texas, and California.
Other FHA Home Purchase Options:
FHA HUD $100 Down Program: This is a specialty FHA mortgage program offered for HUD owned houses throughout the nation. You can search the list of HUD owned homes in the HUD web link below. The big benefit of the HUD 100 down loan program is home buyers can purchase a property with nearly NO money out of pocket. Again, please be remember this program is only available for HUD owned properties. Learn more about the HUD REO $100 down program here.
FHA 203K Loans: Looking for a home loan that can finance the cost of remodeling or improvements? If you’ve found the ideal home, but it needs a little work, the FHA 203K Loan could be the answer. This program allows buyers to purchase a home and roll in the expense of renovations. Standard conventional loans require that homes have certain things in working order before closing. The FHA 203k is a resourceful program for short sale or foreclosed properties that may be distressed due to lack of maintenance. The program is an important program for expanding home ownership, revitalizing neighborhoods, and for making homes safer for homeowners. Please note: FHA 203K loans are only for primary residences, borrowers must occupy the home full-time. Please learn more about FHA 203K loan details here.
FHA 203H Loans: These loans are specifically designed for Presidentially declared disaster zones. FHA permits flexible financing options up to 100% for those affected by recent natural disasters like Fire, Flood, Wind, etc. This includes Hurrican Harvey victims in Texas – Houston, Corpus Christi Galveston, etc, and Hurrican Irma victims in Florida – Miami, Naples, The Keys, Tampa, Jacksonville. Read more detailed information about FHA 203(h) loans here.
FHA Refinance Mortgage Programs:
FHA streamlined refinance – No appraisal or equity is required when you refinance your current FHA mortgage loan into a new FHA loan. The streamline refi program allows homeowners to take advantage of historically lower interest rates and lock into a new FHA mortgage – all without having to provide as much documentation. No appraisal means the streamline loan does NOT have equity requirements like many other loan programs. In addition, no new appraisal, survey or home inspections save the homeowner money on their closing costs. We can also structure the loan so that there is no out of pocket expenses for our client’s. Homeowners will need a few things to be eligible for the Streamline program:
- Must currently have an FHA insured mortgage ( regardless of original lender, we can help)
- Must have on-time mortgage payments for the last 6 months.
- Must have “reason to refi” like reduced interest rate and lower payments, or refinancing out of adjustable rate mortgage, into a fixed rate loan, etc.
- You cannot have refinanced within the past 6 months.
- Must have a 620+ credit score.
- Cash out is not permitted with the streamline refinance program. However, homeowners that have equity can contact us about other cash-out refinance options. Regular FHA cash out refinance options are available up to 85% loan to value. Cash out refinance options will require full appraisal and income, asset documentation.
Please take note if you received an FHA loan before 2015 you may want to consider an FHA streamline refinance. FHA implemented some positive changes by reducing the monthly mortgage insurance premiums. The new monthly mortgage insurance (MIP) rate is currently .85% for FHA purchases ( 96.5% financing) and refinances. Homeowners that are currently paying the higher MIP rates of 1.15% – 1.35% please take note and contact us below with questions.
Low interest rates along with the new lower revised FHA mortgage insurance costs (noted above) makes this a wonderful time to consider a new refinance. The FHA streamline refinance program is providing much needed relief to current FHA homeowners “upside down” or “underwater” on their mortgage.
Borrowers across the U.S. can contact us to learn more about any of the FHA program. Please select the Request Contact icon at the top of your screen, or call ph: 800-871-2636. We generally respond to all submitted requests within minutes during regular business hours!