FHA Loans (Federal Housing Administration) are government-backed loans that allow the borrower to have a minimum amount of money to put down on a home.
Some people believe that FHA is only for first time homebuyers, or for people who have had credit problems in the past. The truth is that FHA is a wonderful loan for everyone.
If you have owned a home previously, and have great credit, FHA may still be the best loan for you. Your RMLO will compare a conventional, VA (if eligible) and an FHA loan for you so you can decide which program is in your best interest!
There are many advantages to an FHA loan. One is the low minimum down payment of 3.5%. The seller can contribute up to 6% of the purchase price toward the buyer’s closing costs and pre-paid expenses.
This can significantly reduce your out-of-pocket expenses at closing. Gift funds are also allowed as well as co-signers.
Streamline refinances are available for FHA customers who have been making their mortgage payments on time for the most recent 12 months.
With a streamline refinance, the loan document requirements are greatly reduced. In fact, a streamline refinance is a great option to take advantage of to lower your rate, or term of your loan without having to fully re-qualify.
Call today to speak to a professional and find out which FHA loan is right for you.