FHA Loan and Financing Information from, fha mortgage.#Fha #mortgage


FHA Loans Explained and Delivered

Federal Housing Administration (FHA) Loans have returned to the lending market as a smart option for home financing for first time home buyers and those with less than perfect credit. At FHA Mortgage Center.com, we provide expert resources to consumers through a wealth of information on FHA home financing.

FHA Loans by State

More Information on FHA Mortgages

Choose an FHA Loan and Save Money. Choosing FHA Financing for your home loan can be a wise decision depending on your specific situation. The costs associated with the FHA Loan Program differ from other types of home financing. Benefits may include the following:

  • Smaller down payments
  • Attractive interest rates
  • Allowance of gift funds
  • 6% seller contributions
  • Lower closing costs

All of these benefits mean less money is required from you at the closing table!

By definition, FHA financing is a government-insured loan program that delegates loan approval to approved lenders.

Changes in the Housing Market Make FHA the Right Choice

Fha mortgage

After the fallout of the subprime and Alt-A loan markets in 2007, FHA Loans have received a new shot of energy throughout the housing market. Lenders, realtors, politicians, and investors have all issued statements championing the return of the FHA Home Loan Program to its rightful place in helping Americans purchase homes.

Borrowers like you, who once would have been better off in a conventional mortgage, may now find a FHA Home Loan to be the cheapest and safest option for securing a home.

FHA Resources

No matter what program you decide to use for your home loan, the basic terminology is something all home buyers need to be familiar with. You can use our new FHA Loan Term Glossary to learn and become comfortable with the financial terminology you will encounter with any home loan.

NOT a Government Agency

FHA Mortgage Center.com is not affiliated with any government agencies, including the FHA (Federal Housing Administration) or the HUD (Department of Housing and Urban Development).

FHA Mortgage Center.com Blog

Latest Articles

Fha mortgage


Fha mortgage, fha mortgage.#Fha #mortgage


2017 Guide to the FHA Insured Reverse Mortgage

5 Costly Mistakes to Avoid to Save Thousands in Your Home’s Equity

Fha mortgage

  1. 28 Page FHA Reverse Mortgage Guide. Gain complete understanding of the reverse mortgage.
  2. How to Avoid Five Costly Mistakes. Learn to easily avoid these pitfalls and save thousands in your home’s equity.
  3. Reasons Not to Get a Reverse Mortgage. Learn the three reasons avoiding the reverse mortgage may be the correct choice.
  4. Four Cash Out Options and which may work best for you to maximize your financial future.
  5. 7 Myths debunked. Get the right information – not misinformation.
  6. How benefits of program may be shrinking soon…
  7. New! Bonus Informational Kit Lists Typical Costs and Fees. Now included with your guide, along with 9 important questions to ask your lender.

This website is used for the primary purpose of educating those seeking information regarding the reverse mortgage. Obtaining a reverse mortgage is a big decision in one’s life and getting the proper balanced education prior to that decision is of the utmost importance. After receiving your reverse mortgage guide, our system will automatically send you a series of 15 educational emails. Thereafter, you will receive no more correspondence from us unless you sign up for our reverse mortgage newsletter, in which case you will receive the email newsletter once per month. Your personal information will not be sold or shared with any other company.

What is FHA and why is it important to the mortgage industry? The Federal Housing Administration (FHA) was established in 1934 to facilitate homeownership in the United States during the depression of the 1930’s. Its primary role was and is to insure FHA approved mortgage loans, protecting lenders from potential losses. With the backing of this governmental agency lenders can more confidently loan money in cases that, without this backing, the lender would not normally consider.

Traditionally, FHA insured mortgages were obtained as a low down payment option for first time homebuyers and others with little cash for a down payment. Once considered the ugly sister to the more popular conventional mortgage products, the number of new FHA insured mortgage loans have surged dramatically since the financial collapse of 2008.

What is an FHA insured reverse mortgage? In 1988, President Reagan signed the FHA Reverse Mortgage Bill into law which placed FHA, an insuring and regulatory body, in the reverse mortgage industry. Since 1988, FHA has insured over 1,000,000 reverse mortgages and FHA reverse mortgages account for at least 98% of all reverse mortgages in the U.S.

Very much like regular forward mortgages, FHA insures reverse mortgage lenders against foreclosure losses, thereby opening up the market to more possible reverse mortgage borrowers than would normally exist without FHA involvement.

Furthermore, acting as the regulatory body, FHA sets the rules for the entire industry and actively and prodigiously audits FHA approved lenders for compliance reasons.

At least 10% of all FHA loans are eventually audited by FHA for compliance purposes. Those lenders failing to comply with the set rules are subject to heavy fines and, if problems persist, a lender can be stripped of its FHA approved status. For most lenders, the latter penalty is tantamount to expulsion from the mortgage industry.

Phone: (855) 469-7383, Ext. 802 • Fax: (972) 332-4135

GenEquity Mortgage • 6060 N. Central Expwy., Ste. 500 • Dallas, TX 75206

NMLS #773830 | Corporate NMLS #2236

State of Texas Disclosures:

GenEquity Mortgage is licensed under the laws of the state of Texas and by State law is subject to regulatory oversight by the Texas Department of Savings and Mortgage Lending. Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550.

The Department maintains a Recovery Fund to make payments of certain actual out of pocket damages sustained by borrowers caused by the acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the deparment’s website at www.sml.texas.gov.

This information is not from HUD or FHA and was not approved by HUD or any government agency.

GenEquity Mortgage is licensed in the following states: Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Louisiana, Minnesota, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin.


What is an FHA Loan? Complete Guide to FHA Loans, Zillow, fha mortgage.#Fha #mortgage


What is an FHA Loan? – The Complete Consumer Guide

In this article:

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.

Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower s credit score can be between 500 579 if a 10% down payment is made. It s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.

The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable for people with less than stellar credit or a low down payment. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

FHA Loan Requirements

For borrowers interested in buying a home with an FHA loan with the low down payment amount of 3.5%, applicants must have a minimum FICO score of 580 to qualify. However, having a credit score that’s lower than 580 doesn’t necessarily exclude you from FHA loan eligibility. You just need to have a minimum down payment of 10%.

The credit score and down payment amounts are just two of the requirements of FHA loans. Here’s a complete list of FHA loan requirements, which are set by the Federal Housing Authority:

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money can be gifted by a family member.
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers back-end ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. FHA-qualified lenders will use a case-by-case basis to determine an applicants credit worthiness.
  • Typically borrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made if you are out of bankruptcy for more than one year if there were extenuating circumstances beyond your control that caused the bankruptcy and you ve managed your money in a responsible manner.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.
  • The property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).

See today s rates for FHA loans on Zillow Fha mortgage

Benefits of FHA Loans: Low Down Payments and Less Strict Credit Score Requirements

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.

Borrowers who cannot afford a 20 percent down payment, have a lower credit score, or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

Another advantage of an FHA loan it is an assumable mortgage which means if you want to sell your home, the buyer can “assume” the loan you have. People who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon may be able to still qualify for an FHA loan.

Mortgage Insurance is Required for an FHA Loan

You knew there had to be a catch, and here it is: Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront -– or, it can be financed into the mortgage –- and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.

Upfront mortgage insurance premium (UFMIP) — Appropriately named, this is a one-time upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250. This sum can be paid upfront at closing as part of the settlement charges or can be rolled into the mortgage.

Annual MIP (charged monthly) — Called an annual premium, this is actually a monthly charge that will be figured into your mortgage payment. The amount of the mortgage insurance premium is a percentage of the loan amount, based on the borrower s loan-to-value (LTV) ratio, loan size, and length of loan:


FHA Loans – 7 Crucial Facts About FHA Loans, fha mortgage loans.#Fha #mortgage #loans


7 crucial facts about FHA loans

Fha mortgage loans

Christian Science Monitor/Getty Images

What is an FHA loan?

Less rigorous lending standards and lower down-payment requirements make FHA loans popular with mortgage borrowers.

An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.

Why people get FHA loans

Because of that insurance, lenders can — and do — offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements. The FHA is an agency within the U.S. Department of Housing and Urban Development.

Here are seven facts that borrowers should know about FHA loans.

Fha mortgage loans

Less-than-perfect credit is OK

Minimum credit scores for FHA loans depend on the type of loan the borrower needs. To get a mortgage with a down payment as low as 3.5 percent, the borrower needs a credit score of 580 or higher.

Those with credit scores between 500 and 579 must make down payments of at least 10 percent.

Know your credit score before you borrow. Check it today for free at myBankrate.

People with credit scores under 500 generally are ineligible for FHA loans. The FHA will make allowances under certain circumstances for applicants who have what it calls “nontraditional credit history or insufficient credit” if they meet requirements. Ask your FHA lender or an FHA loan specialist if you qualify.

Fha mortgage loans

Eric Audras/Getty Images

Minimum down payment is 3.5 percent

For most borrowers, the FHA requires a down payment of just 3.5 percent of the purchase price of the home. That’s a “huge attraction,” says Dennis Geist, senior adviser at Treliant Risk Advisors and formerly a vice president of government programs for another lender. In late 2014, Fannie Mae and Freddie Mac reduced minimum down payments to 3 percent from 10 percent, but such loans have limited availability.

FHA borrowers can use their own savings to make the down payment. But other allowed sources of cash include a gift from a family member or a grant from a state or local government down-payment assistance program.

Ready for a mortgage with a low down payment? Search now for an FHA loan.

Fha mortgage loans

Closing costs may be covered

The FHA allows home sellers, builders and lenders to pay some of the borrower’s closing costs, such as an appraisal, credit report or title expenses. For example, a builder might offer to pay closing costs as an incentive for the borrower to buy a new home.

Lenders typically charge a higher interest rate on the loan if they agree to pay closing costs. Borrowers can compare loan estimates from competing lenders to figure out which option makes the most sense.

Fha mortgage loans

/ JGI/Jamie Grill/Getty Images

Lender must be FHA-approved

Because the FHA is not a lender, but rather an insurer, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA). Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan.

Costs, services and underwriting standards will vary among lenders or mortgage brokers, so it’s important for borrowers to shop around.

Fha mortgage loans

Jakub Krechowicz / Fotolia

Two-part mortgage insurance

Two mortgage insurance premiums are required on all FHA loans: The upfront premium is 1.75 percent of the loan amount — $1,750 for a $100,000 loan. This upfront premium is paid when the borrower gets the loan. It can be financed as part of the loan amount.

The second is called the annual premium, although it is paid monthly. It varies based on the length of the loan, the loan amount and the initial loan-to-value ratio, or LTV. The following premiums are for loans of $625,500 or less.

Annual premiums for FHA loans

  • 30-year loan, down payment (or equity) of less than 5 percent: 0.85 percent
  • 30-year loan, down payment (or equity) of 5 percent or more: 0.80 percent
  • 15-year loan, down payment (or equity) of less than 10 percent: 0.70 percent
  • 15-year loan, down payment (or equity) of 10 percent or more: 0.45 percent

Fha mortgage loans

Image Source/Getty Images

You can borrow cash for repairs

The FHA has a special loan product for borrowers who need extra cash to make repairs to their homes. The chief advantage of this type of loan, called a 203(k), is that the loan amount is not based on the current appraised value of the home, but on the projected value after the repairs are completed.

A so-called “streamlined” 203(k) allows the borrower to finance up to $35,000 for nonstructural repairs, such as painting and replacing cabinets or fixtures.

Fha mortgage loans

mother image/redshorts/Getty Images

Financial hardship relief allowed

Of course, FHA insurance isn’t supposed to be an easy out for borrowers who are unhappy about their mortgage payments.

But loan servicers can offer some relief to borrowers who have an FHA-insured loan, have suffered a serious financial hardship or are struggling to make their payments. That relief might be in the form of a temporary period of forbearance, a loan modification that would lower the interest rate or extend the payback period or a deferral of part of the loan balance at no interest.


Home Loans for Bad Credit, FHA Mortgages – Refinancing, GovHomeLoans, fha mortgages.#Fha #mortgages


fha mortgages

Fha mortgages

It takes less than 30 seconds to move toward homeownership. And it is free. Let us help you.

Home Loans For Bad Credit

Are you wondering how to buy a home with bad credit? Do you know how to acquire a bad credit home loan? Thanks to the fact that they are government insured, the FHA (Federal Housing Authority) and FHA backed Mortgages, allow people to get home loans with bad credit; so you buy the home you ve been wanting. These “Bad Credit Mortgages” are not as expensive as some other home loans, and their relaxed qualifications help people every day stop being renters and become homeowners.

Most people consider owning a home at one point or another in their lives, but do not know what it takes to do so. What houses can I afford? How much is it going to cost? Do I have enough down payment? Will a bank lend to me? Perhaps you have gotten past that part and actually have gone to a bank to find you are not eligible for a home loan, but were not told why, or do not understand why. Then you re left with even more questions. Do I have bad credit? Do bad credit home loans exist? How can I get home loans for bad credit or even how to buy a home with bad credit? What is my debt to income ratio? What do I need to qualify for an FHA bad credit mortgage loan?

At Government Home Loans, we have answers and resources for every step in the home loan process, focusing heavily on FHA loans due to the relaxed guidelines and their ability to help the first time home buyer. Our goal is to give you a timeline and a plan to get you access to home loan that is both a safe, and responsible loan that you can succeed in.

We have highly trained loan specialists available to you, and we are committed to sharing all of our resources to get you into your own home with an FHA Mortgage. Whether you are a first time home buyer and are looking for home loans for people with bad credit, or have owned before but have been recently turned down, our specialists as well as many online resources can provide you the tools you need to attain your goals. Things have changed a lot, you can buy a home with bad credit now. Talk to one of our bad credit mortgage lenders or find the information that may help you right here on the website.


Conventional, FHA Or VA Mortgage, fha mortgages.#Fha #mortgages


Which mortgage is right for you? Comparing conventional, FHA and VA loans

For most mortgage borrowers, there are three major loan types: conventional, FHA and VA. Here is how they compare.

1. Conventional loans

Who they’re for: Conventional mortgages are ideal for borrowers with good or excellent credit.

How they work: Conventional mortgages are “plain vanilla” home loans. They follow fairly conservative guidelines for:

  • Borrower credit scores.
  • Minimum down payments.
  • Debt-to-income ratios.

Debt-to-income ratio

Percentage of monthly income that is spent on debt payments, including mortgages, student loans, auto loans, minimum credit card payments and child support.

Cost: Lender fees, third-party fees, down payments, mortgage insurance and points can mean the borrower has to show up at closing with a sizable sum of money out of pocket.

Find out more about closing costs and how to save money.

What’s good: Conventional mortgages generally pose fewer hurdles than Federal Housing Administration or Veterans Affairs mortgages, which may take longer to process.

What’s not as good: You’ll need excellent credit to qualify for the best interest rates.

2. FHA loans

Who they’re for: Federal Housing Administration mortgages have flexible lending standards to benefit:

  • People whose house payments will be a big chunk of take-home pay.
  • Borrowers with low credit scores.
  • Homebuyers with small down payments and refinancers with little equity.

How they work: The Federal Housing Administration does not lend money. It insures mortgages.

The FHA allows borrowers to spend up to 56 percent or 57 percent of their income on monthly debt obligations, such as mortgage, credit cards, student loans and car loans. In contrast, conventional mortgage guidelines tend to cap debt-to-income ratios at around 43 percent.

For many FHA borrowers, the minimum down payment is 3.5 percent. Borrowers can qualify for FHA loans with credit scores of 580 and even lower.

Cost: Each FHA loan has two mortgage insurance premiums:

  • An upfront premium of 1.75 percent of the loan amount, paid at closing.
  • An annual premium that varies. Most FHA homebuyers get 30-year mortgages with down payments of less than 5 percent. Their premium is 0.8 percent of the loan amount per year, or $66.67 a month for a $100,000 loan.

What’s good: FHA loans are often the only option for borrowers with high debt-to-income ratios and low credit scores.

What’s not as good: To get rid of FHA premiums, you must refinance the loan.

3. VA loans

Who they’re for: Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.

How they work: No down payment is required from qualified borrowers buying primary residences. The VA does not lend money, but guarantees loans made by private lenders.

Cost: The VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee varies from 1.25 percent to 3.3 percent of the loan amount.

The VA allows sellers to pay closing costs but doesn’t require them to. So, the buyer might need money for closing costs. Borrowers may need money for the earnest-money deposit.

What’s good: VA borrowers can qualify for 100 percent financing. Veterans do not have to be first-time buyers and may reuse their benefit.

What’s not as good: According to the VA, there isn’t a cap on the amount you can borrow. “However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified veteran with full entitlement may be able to borrow without making a down payment. These loan limits vary by county, since the value of a house depends in part on its location.”


FHA Loan and Financing Information from, fha mortgage rates.#Fha #mortgage #rates


FHA Loans Explained and Delivered

Federal Housing Administration (FHA) Loans have returned to the lending market as a smart option for home financing for first time home buyers and those with less than perfect credit. At FHA Mortgage Center.com, we provide expert resources to consumers through a wealth of information on FHA home financing.

FHA Loans by State

More Information on FHA Mortgages

Choose an FHA Loan and Save Money. Choosing FHA Financing for your home loan can be a wise decision depending on your specific situation. The costs associated with the FHA Loan Program differ from other types of home financing. Benefits may include the following:

  • Smaller down payments
  • Attractive interest rates
  • Allowance of gift funds
  • 6% seller contributions
  • Lower closing costs

All of these benefits mean less money is required from you at the closing table!

By definition, FHA financing is a government-insured loan program that delegates loan approval to approved lenders.

Changes in the Housing Market Make FHA the Right Choice

Fha mortgage rates

After the fallout of the subprime and Alt-A loan markets in 2007, FHA Loans have received a new shot of energy throughout the housing market. Lenders, realtors, politicians, and investors have all issued statements championing the return of the FHA Home Loan Program to its rightful place in helping Americans purchase homes.

Borrowers like you, who once would have been better off in a conventional mortgage, may now find a FHA Home Loan to be the cheapest and safest option for securing a home.

FHA Resources

No matter what program you decide to use for your home loan, the basic terminology is something all home buyers need to be familiar with. You can use our new FHA Loan Term Glossary to learn and become comfortable with the financial terminology you will encounter with any home loan.

NOT a Government Agency

FHA Mortgage Center.com is not affiliated with any government agencies, including the FHA (Federal Housing Administration) or the HUD (Department of Housing and Urban Development).

FHA Mortgage Center.com Blog

Latest Articles

Fha mortgage rates


What is an FHA Loan? Complete Guide to FHA Loans, Zillow, fha mortgage requirements.#Fha #mortgage


What is an FHA Loan? – The Complete Consumer Guide

In this article:

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.

Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower s credit score can be between 500 579 if a 10% down payment is made. It s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.

The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable for people with less than stellar credit or a low down payment. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

FHA Loan Requirements

For borrowers interested in buying a home with an FHA loan with the low down payment amount of 3.5%, applicants must have a minimum FICO score of 580 to qualify. However, having a credit score that’s lower than 580 doesn’t necessarily exclude you from FHA loan eligibility. You just need to have a minimum down payment of 10%.

The credit score and down payment amounts are just two of the requirements of FHA loans. Here’s a complete list of FHA loan requirements, which are set by the Federal Housing Authority:

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money can be gifted by a family member.
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers back-end ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. FHA-qualified lenders will use a case-by-case basis to determine an applicants credit worthiness.
  • Typically borrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made if you are out of bankruptcy for more than one year if there were extenuating circumstances beyond your control that caused the bankruptcy and you ve managed your money in a responsible manner.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.
  • The property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).

See today s rates for FHA loans on Zillow Fha mortgage requirements

Benefits of FHA Loans: Low Down Payments and Less Strict Credit Score Requirements

Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a low down payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.

Borrowers who cannot afford a 20 percent down payment, have a lower credit score, or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

Another advantage of an FHA loan it is an assumable mortgage which means if you want to sell your home, the buyer can “assume” the loan you have. People who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon may be able to still qualify for an FHA loan.

Mortgage Insurance is Required for an FHA Loan

You knew there had to be a catch, and here it is: Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront -– or, it can be financed into the mortgage –- and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.

Upfront mortgage insurance premium (UFMIP) — Appropriately named, this is a one-time upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250. This sum can be paid upfront at closing as part of the settlement charges or can be rolled into the mortgage.

Annual MIP (charged monthly) — Called an annual premium, this is actually a monthly charge that will be figured into your mortgage payment. The amount of the mortgage insurance premium is a percentage of the loan amount, based on the borrower s loan-to-value (LTV) ratio, loan size, and length of loan:


FHA Loans for First Time Home Buyers & FHA Loans to Refinance, fha mortgage requirements.#Fha


fha mortgage requirements

Fha mortgage requirements

Licensed in the State of Florida

Licensed in the State of New Jersey

First Time Home Buyer or Refinance

November 8, 2017

Do you want to learn more about becoming a first time home buyer ?

The FHA program was created as part of the National Housing Act on June 28, 1934. FHA was created to help stimulate the housing market making loans more accessible and more affordable. The FHA program was created as a result of The Great Depression to help anyone including families, the elderly, people on disability and lower-income families be able to buy a home.

After the financial crisis of 2008 all the major banks raised their credit standards for approving FHA loans. Because the banks make the rules for loans they will approve, they may require a minimum credit score of 640 for their loans. These guidelines are the bank’s guidelines.

When you apply for an FHA loan at a major bank and they tell you their minimum credit score requirement is 640. This does not mean that it’s FHA’s minimum credit score requirement. It means that they are the bank’s credit score requirements .

Credit score – On January 20, 2010 FHA announced a new policy to address risk. FHA changed the minimum credit score for new borrowers .

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment

This has allowed the FHA to better balance its risk and continue to provide financing for home buyers.

Debt-to-income ratio – April 1, 2013 FHA loan requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender and FHA can calculate the borrower’s debt-to-income ratio.

  • FHA maximum debt to income ratio can be over 55%
  • Manual underwriting maximum debt to income ratio is 50%

Mortgage Insurance – On January 9, 2015 the Federal Housing Administration (FHA) announced the reduction of it’s annual Mortgage Insurance Premium (MIP) rates.

Effective on or after January 26, 2015 FHA will reduce the premium from 1.35% to .85% a reduction of .5%.

Combined with low interest rates and the reduction of MIP rates means that it is a great time to buy a home or refinance your mortgage.

First Time Home Buyer – FHA Refinance

Closing cost – FHA allows the seller to pay up to 6% of your closing cost.

If you are buying a $100,000.00 house FHA allows the seller to pay up to $6,000.00 for your closing cost. It must be in writing in the sales contract, “Seller will pay up to 6% of buyer’s closing cost.”

If you do not write it into the sales contract then you will be paying the closing cost. In the state of Florida closing cost for a $100,000.00 house average around $4,300.00 depending on taxes, insurance and who’s paying the transfer tax and owner’s title insurance.

By allowing the seller to pay for your closing cost you will decrease the amount of money required to buy a home. Buying a $100,000.00 property requires $3,500.00 down payment and if the seller pays up to $6,000.00 for your closing cost you will only need around $4,000.00 to buy a $100,000.00 in Florida.

Are you short funds to close? The FHA no closing cost loan allows all of your closing cost to be rolled into your loan including your appraisal fee, hazard insurance premium and even your escrow account.

Are you a first time home buyer? Do you need to get pre-approved for a first time home buyer program in Florida? Apply now!

First Time Home Buyer – FHA Mortgage – FHA Refinance

Fha mortgage requirements

Call us 888.958.5382

www.MORTGAGE-WORLD.com, LLC is a licensed residential mortgage broker in the state of Florida and will match you with the lender that will approve your FHA loan down to a 500 credit score.

We look forward to working with you.


FHA Loans for First Time Home Buyers & FHA Loans to Refinance, fha mortgage requirements.#Fha


fha mortgage requirements

Fha mortgage requirements

Licensed in the State of Florida

Licensed in the State of New Jersey

First Time Home Buyer or Refinance

November 8, 2017

Do you want to learn more about becoming a first time home buyer ?

The FHA program was created as part of the National Housing Act on June 28, 1934. FHA was created to help stimulate the housing market making loans more accessible and more affordable. The FHA program was created as a result of The Great Depression to help anyone including families, the elderly, people on disability and lower-income families be able to buy a home.

After the financial crisis of 2008 all the major banks raised their credit standards for approving FHA loans. Because the banks make the rules for loans they will approve, they may require a minimum credit score of 640 for their loans. These guidelines are the bank’s guidelines.

When you apply for an FHA loan at a major bank and they tell you their minimum credit score requirement is 640. This does not mean that it’s FHA’s minimum credit score requirement. It means that they are the bank’s credit score requirements .

Credit score – On January 20, 2010 FHA announced a new policy to address risk. FHA changed the minimum credit score for new borrowers .

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment

This has allowed the FHA to better balance its risk and continue to provide financing for home buyers.

Debt-to-income ratio – April 1, 2013 FHA loan requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender and FHA can calculate the borrower’s debt-to-income ratio.

  • FHA maximum debt to income ratio can be over 55%
  • Manual underwriting maximum debt to income ratio is 50%

Mortgage Insurance – On January 9, 2015 the Federal Housing Administration (FHA) announced the reduction of it’s annual Mortgage Insurance Premium (MIP) rates.

Effective on or after January 26, 2015 FHA will reduce the premium from 1.35% to .85% a reduction of .5%.

Combined with low interest rates and the reduction of MIP rates means that it is a great time to buy a home or refinance your mortgage.

First Time Home Buyer – FHA Refinance

Closing cost – FHA allows the seller to pay up to 6% of your closing cost.

If you are buying a $100,000.00 house FHA allows the seller to pay up to $6,000.00 for your closing cost. It must be in writing in the sales contract, “Seller will pay up to 6% of buyer’s closing cost.”

If you do not write it into the sales contract then you will be paying the closing cost. In the state of Florida closing cost for a $100,000.00 house average around $4,300.00 depending on taxes, insurance and who’s paying the transfer tax and owner’s title insurance.

By allowing the seller to pay for your closing cost you will decrease the amount of money required to buy a home. Buying a $100,000.00 property requires $3,500.00 down payment and if the seller pays up to $6,000.00 for your closing cost you will only need around $4,000.00 to buy a $100,000.00 in Florida.

Are you short funds to close? The FHA no closing cost loan allows all of your closing cost to be rolled into your loan including your appraisal fee, hazard insurance premium and even your escrow account.

Are you a first time home buyer? Do you need to get pre-approved for a first time home buyer program in Florida? Apply now!

First Time Home Buyer – FHA Mortgage – FHA Refinance

Fha mortgage requirements

Call us 888.958.5382

www.MORTGAGE-WORLD.com, LLC is a licensed residential mortgage broker in the state of Florida and will match you with the lender that will approve your FHA loan down to a 500 credit score.

We look forward to working with you.