FHA Loans?

What is an FHA Loan?


A FHA loan is a Government Program created by The National Housing Act of 1934. It was established primarily to increase home construction, reduce unemployment and operate various loan insurance programs. In the latter halve of the 1960s, their role has expanded as the agency became the administrator of interest rate subsidy and rent supplement programs. Further changes in 1980 raised ceilings on single-family loan limits, it permitted negotiated interest rates on certain FHA programs & created a new FHA subsidy program for middle income families. In August 2007 FHA added a new refinancing program called FHA-Secure to help borrower hurt by the 2007 subprime mortgage financial crisis. On March 6 2008, the FHA-Forward program was initiated. This was part of the stimulus package put in place to raise the loan limits for all FHA programs and in some instances it's loan limits are higher than conventional programs put in place by Wall Street.

What is an FHA Loan?

A FHA loan is a Government Program created by The National Housing Act of 1934. It was established primarily to increase home construction, reduce unemployment and operate various loan insurance programs. In the latter halve of the 1960s, their role has expanded as the agency became the administrator of interest rate subsidy and rent supplement programs. Further changes in 1980 raised ceilings on single-family loan limits, it permitted negotiated interest rates on certain FHA programs & created a new FHA subsidy program for middle income families. In August 2007 FHA added a new refinancing program called FHA-Secure to help borrower hurt by the 2007 subprime mortgage financial crisis. On March 6 2008, the FHA-Forward program was initiated. This was part of the stimulus package put in place to raise the loan limits for all FHA programs and in some instances it's loan limits are higher than conventional programs put in place by Wall Street.


Eligibility

Available for primary homes Purchase & Refinance loans FHA MIP Streamline with no appraisal needed


Flexible Benefits

No Mortgage Insurance- No costly Private Mortgage Insurance if you currently do not have it

More flexible underwriting requirements- To make the program assessable to more people, H.A.R.P. guidelines are Significantly more lenient than those of conventional loans. Example- Debt-to-Income (DTI) ratios can be 40% higher versus conventional loans

Lower closing costs- Closing costs are capped, which makes H.A.R.P. loans attractive options for homeowners who qualify

No appraisal- Waived in most cases based on DU Findings at Approve/Eligible

Better Mortgage Terms- H.A.R.P. Loans offer more attractive mortgage conditions, as lower rates, closing costs & shorter loan terms

FHA 203K rehab loans
Includes rehab and remodeling costs of your home into a FHA insured loan versus out-of-pocket expenses
Streamline FHA Program- You can be the Contractor up to $30,000 in Improvements
Regular FHA Program- You need a licensed Contractor for $30,000+ in Improvements
FHA 203K rehab loans are capped at 96.5% Loan-to-Value (LTV)

Liberal Credit History
FHA loan guidelines do not require a minimum credit score. Borrowers can be approved with little or no credit history, as long as there is no negative credit history on their report. For those that have credit, you need only one year of clean credit history. You can qualify for an FHA mortgage in as little as two years after a bankruptcy and three years after a foreclosure, as long as there is clean credit within that time frame. Conventional loan guidelines require two years of clean credit and a minimum of four years after a bankruptcy or 7 years after a foreclosure. Exemptions can be made if extenuating circumstances caused your Bankruptcy or foreclosure due to Loss of employment or 25% reduction in gross income and you have managed your money in a responsible manner and have improved your credit since a bankruptcy or foreclosure.


Higher Debt Ratios
DTI (Debt-to-Income) ratios can be 30% higher versus conventional loans

Less Stringent Qualifications
Can be approved with less than perfect credit history
FHA loans are government backed
Easier to qualify for a competitive rate
Up to 97% of appraised value
97% of home value to pay off your 1st mortgage or any additional mortgages on your home
85% of home value topay off credit cards, Installment loans, 2nd mortgage, emergency expenses & Cash in hand

Home Improvements
Major Home repairs
Upgrade your home
Remodel your kitchen or bathrooms

FHA Streamline for current FHA mortgages
The FHA Streamline Refinance is one of the best options for Homeowners who currently have a FHA Loan and would
Like to refinance into a lower interest rate & monthly payment
No appraisal needed in most cases
Little or no Out-of-Pocket costs can be rolled into the balance of the loan
Borrower certify that he or she has previously occupied the property
Must be current on the mortgage payment & no more than one 30 day late in the past 12 months

And much more is available, Fill out our form "See if you Qualify" or contact our Toll-Free number


FAQs


What is an FHA loan?
FHA home loan advantages?
Can I use my FHA Benefits to Purchase a Home?
Can I pay off debt or take out cash with my FHA Benefits?
What if I have a low credit score or have been late on my monthly payments?
Can I Remodel or Rehab a home with a FHA loan programs?
Is there a program to help my finances for my retirement?
How do I start the process to see which FHA loan benefits I qualify for?

What is an FHA loan?
A FHA loan is a Government Program created by The National Housing Act of 1934. It was established primarily to increase home construction, reduce unemployment and operate various loan insurance programs. In the latter halve of the 1960s, their role has expanded as the agency became the administrator of interest rate subsidy and rent supplement programs. Further changes in 1980 raised ceilings on single-family loan limits, it permitted negotiated interest rates on certain FHA programs & created a new FHA subsidy program for middle income families. In August 2007 FHA added a new refinancing program called FHA-Secure to help borrower hurt by the 2007 subprime mortgage financial crisis. On March 6 2008, the FHA-Forward program was initiated. This was part of the stimulus package put in place to raise the loan limits for all FHA programs and in some instances it\'s loan limits are higher than conventional programs put in place by Wall Street. Who is eligible for a FHA home loan? You must have sufficient income , a more liberal credit score requirements to be eligible for a FHA- insured home loan. FHA does not make loans; rather it insures the loan made by Banks and private lenders that are FHA-Approved by the U.S. Department of Housing and Urban Development. As each lender sets its own rate and terms, H.A.R.P. Programs helps you find the right lender to meet your financial needs.
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FHA home loan advantages?
The insurance FHA Benefits provide you with more favorable terms including:

Purchase down payment of only 3.5% of the Purchase Contract
Refinance Equity as low as 2.25% of the appraised value
Higher loan Loan-to-Value (LTV) for cash out then conventional mortgage terms
Closing costs on a Purchase can be added to the loan through seller\'s concessions
More favorable underwriting guidelines to qualify for all FHA programs available
More liberal credit history to make home ownership possible
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Can I use my FHA Benefits to Purchase a Home?
FHA loans allow an Eligible and Qualified borrower the opportunity to purchase a home with no down payment. Additional benefits includes: Reduced credit qualifications, Lower interest rates & monthly payments, Seller\'s Concessions to include closing costs into the Purchase Contract and other benefits you qualify for.
Buying a home process:

-We will help you find a lending institution that participates in the FHA program to issue you a Pre-Approval Letter -Determine your Eligibility with a FHA program to meet your needs
-Help you find a local preferred realtor if you do not have one
-Sign a Purchase Agreement for your Dream Home
-Apply for a FHA Loan with a Lending Institution
-Collect your documents, process it through underwriting
-Have closing to finalize your purchase of your Dream Home
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Can I pay off debt or take out cash with my FHA Benefits?
Not only can you refinance your home but also pay off additional credit cards, installment loans, 2nd mortgages, remodel or rehab your home and take any additional cash you choose to.
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What if I have a low credit score or have been late on my monthly payments?
Some of our clients have been hit due to unforeseen circumstance. With the programs our investors & lenders offer, they have the capability to use an In-house rescore program which only takes 5-7 business days not the typical 6-12 months it takes if you go directly through the three credit bureaus; Equifax, Transunion & Experian.
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Can I Remodel or Rehab a home with a FHA loan programs?
Section 203(K) insurance enables homebuyers and homeowners to finance both the purchase and refinance of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. FHA 203K fills a unique and important need for homebuyers and homeowners. When buying a house that needs repair or modernization, 203K limits the complicated and costly process by combining the purchase and repairs into one loan for the consumer. FHA 203K also does the same for a homeowner that already owns their property. For less extensive repairs/improvements, the limited FHA 203K also lets the homeowner be the contractor on their own project.

The types of improvements that borrower might make include:
-Structure alterations & reconstruction
-Modernization & improvements to the home\'s function
-Eliminate health & safety hazards
-Changes that improve appearance & eliminate obsolescence
-Recondition or replace plumbing; install a new well or septic
-Adding or replacing roofing, gutters & downspouts
-Adding or replacing floors and/or floor treatments
-Major landscape work or site improvements
-Enhancing accessibility for a disabled person
-Making energy conservation improvements
-Or modernizing the properties amenities

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Is there a program to help my finances for my retirement?
The Home Equity Conversion Mortgage (HECM) is FHA\'s reverse mortgage program which enables consumers use the equity in their home for greater financial security. Many seniors use it to supplement their retirement income. HECM is a special type of home loan that lets you convert a portion of the home into cash. The equity that you built up over the years of making mortgage payments can be paid directly to you. This can help eliminate mortgage payments, pay off debt, unexpected medical expenses, make home improvements and receive cash for any unexpected future expenses. The HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their primary residence. Our preferred lenders will be able to qualify you for the right program and explain the qualifications that need to be met for your approval and the lifetime benefits you can enjoy. HECM can also be used to purchase your dream home in your golden years of your retirement to enjoy the benefits of all your years in the workforce.
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How do I start the process to see which FHA loan benefits I qualify for?
All you have to do is fill out a few basic questions and H.A.R.P. Programs will put you in touch with our preferred lenders. After you have submitted these basic answers, our preferred lenders will contact you within 24 hours and they will be able to answer any questions you may have. They will also make sure that you qualify for these programs. You can see what you qualify for by filling out our easy to use form "See if You Qualify" or by calling our Toll-Free number today.
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