FHA Mortgage Information

FHA Mortgage Information

What is the Federal Housing Administration (FHA)?
The Federal Housing Administration, known as "FHA", provides mortgage insurance on house loans made by FHA lenders throughout the United States. The FHA insures mortgages on single family and multifamily homes and is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.

How is the FHA funded?
The FHA is presently the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing. The proceeds from the mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely.

Why choose an FHA Mortgage?
There are lots of good reasons to apply for an FHA Loan, especially if one or more of the following apply to you:

You don't have perfect credit

You don't have a lot of money to spend on a down payment

You're worried about your adjustable rate monthly payments increasing

You're a first-time home buyer

You want a low interest fixed-rate loan

If any of these things describe you, then an FHA Mortgage may be your best mortgage option. Why? FHA-insured loans offer many benefits and protections that you won't find in other loans including:

FHA Mortgages are Credit Flexible
FHA Loan Credit guidelines are not completely score driven. They are written in a way that provides the borrower the benefit of the doubt that there had been circumstances beyond their control in their past. Provided the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA Mortgage. A 620 FICO credit score is required to obtain an FHA Loan Approval through ENG Lending.

FHA Mortgages Carry Great Rates, Low Monthly Mortgage Insurance
Another advantage of FHA Mortgages, as compared to a conventional loans, is great interest rates and lower monthly mortgage insurance (MI). Standard FHA Mortgage interest rates are usually better than a conforming 30-Year Fixed loan.

FHA Mortgages Have Smaller Down Payments
FHA Loan Qualifications only require a 3.5% down payment and the money can be a gift from a family member, employer or charitable organization, which other programs don't allow.

FHA Mortgages Offer More Protection to Keep Your Home
The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, the FHA Mortgages have many options to help you keep you in your home and avoid foreclosure.

What Kinds of FHA Mortgages are Available Today?

Purchase FHA Mortgages - FHA Mortgages can be used to purchase a home in all 50 states. Purchase FHA Mortgages are available with very low fixed FHA Mortgage Interest Rates. The Maximum FHA Mortgage Amount varies from area to area. The lowest maximum FHA Loan Amount for any area is $271,050.

Refinance FHA Mortgages - FHA Mortgages can be used to refinance home loans for various purposes including interest rate reduction, payment reduction, debt consolidation, cash out, and home improvement. FHA Mortgage Refinance can be used to access up to 97.75% of your homes current appraised value.

Fixed rate loans - Most FHA Loan Terms offered are in fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

Adjustable rate loans - Most first-time home buyers are a little stretched financially, so they want payments as low as possible at the beginning. With FHA's adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT the most widely used index, to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

As you can see, there are many options that are available when considering an FHA Loan Online. Let ENG Lending help you navigate the FHA Mortgage process and get the result you want - Approval!

Why choose an FHA Mortgage?

FHA Mortgage Loans require a low 3.5% down payment.
Non-occupant, co-borrower are permitted by FHA Mortgage Requirements.
FHA Mortgage Guidelines guidelines use expanded qualifying ratios.
There are no pre-payment penalty requirement for an FHA Home Mortgage.
FHA Mortgage Programs carry low fixed interest rates.
An FHA Mortgage Home Loan has lower MI premiums.
An FHA Mortgage is eligible for non-credit qualifying, streamline refinance.
An FHA Insured Mortgage is available all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards and the price is below the FHA Mortgage Limit for that area.
You can get a HUD FHA Mortgage to purchase or refinance a new or existing one to four family home in urban and rural areas.
FHA Mortgage Financing Fixed-Rate Loans are offered at terms of 15 or 30 years.

FHA Mortgage FAQ's

What is an FHA Loan?
An FHA loan provides low-cost insured home mortgage loans that suit a variety of purchasing and refinancing options.

What are FHA Loan Limits?
Today's maximum FHA Loan Limits are determined by the area where the subject property is located.

How can I qualify for an FHA Loan?
You must obtain correct FHA Mortgage Information to determine if you could qualify for today's FHA Mortgage Insurance guidelines. Certain FHA Loan Credit Score and FHA Mortgage Income guidelines must be met.

What are current FHA Mortgage Fees?
The FHA has a list of allowed fees that can be charged to the borrower on FHA Loans. These fees are referred to as allowable closing costs, and can vary from lender to lender. The FHA Loan MIP (Mortgage Insurance Premium) amounts to 1.75% of the loan amount and in usually financed in the mortgage.

Do FHA Loans have Mortgage Insurance?
FHA Loans have Monthly Mortgage Insurance on loans with a term of greater than 15 years and a loan-to-value ratio of 90% or greater (meaning you are borrowing more than 90% of the value of the home). FHA Mortgage Insurance (MI) is not considered FHA Loan PMI, because it is not provided by a private mortgage insurance company like on Conventional Loans. When comparing the monthly mortgage insurance rates on an FHA Mortgage vs Conventional Mortgage PMI, the FHA MI Rates are usually better.