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Thank you so much for your help in refinancing my mortgage loans.  You were wonderful in being patient with me and going into detail to explain anything I had any questions about.  I will be sure and recommend you for future friends. 


- Desiree Young, TX

Key Benefits

  • Lower Down Payments/Equity requirements - An FHA mortgage requires a minimum down payment as low as 3.5% on a new home purchase and on a refinance the equity requirement is just 2.25%. This is ideal if you are a first time home buyer and looking to get your first home with the lowest possible down payment, the product is also ideal for home owners who have limited equity in their property and looking to refinance to a lower rate. 


  • Lower Credit Thresholds - One of the benefits of the FHA loan program is that home buyers & home owners may qualify even without a long credit history or outstanding credit. The minimum credit qualifying score required on an FHA loan could be as low as 530 making it an ideal choice if you have a low credit score or if your credit has not been established. Few NICHE products cover FHA loan products which would allow financing with no scores too. If you have an existing FHA loan and you are looking to refinance, FHA offers a streamline refinance option that does not require credit qualification or an appraisal to help you with the financing. 


  • Higher Income ratio tolerance - FHA loan programs offer a higher tolerance on your debt to income ratio as compared to other loan programs provided you have a well established credit. If you have an existing FHA loan and you are looking to refinance, If your existing mortgage is an FHA then FHA offers a streamline refinance option that does not require credit qualification or an appraisal to help you with the financing. 

FEDERAL HOUSING ADMINISTRATION - FHA

CLIENT RESPONSES

This section will give you a good Idea of the mortgage process and the time frame involved.  The knowledge will help you feel more comfortable as you understand and go through the steps.

LOAN ​PROCESS

​An FHA mortgage is a government-backed home loan with more flexible lending requirements than those for conventional loans. Because of this, you need to pay a monthly mortgage insurance premiums along with your monthly loan payments and an Upfront mortgage insurance premium that is rolled into your loan.

FHA loans are available with fixed rates or as adjustable-rate mortgages. FHA loans are insured by the Federal Housing Administration (FHA) and may have an easier qualification process due to less stringent down-payment and credit requirements than conventional mortgages.

Frequently asked questions about this program

  • Is there a closing costs involved in this loan program? - Whether you are buying a new home or refinancing your existing mortgage, there will be a closing cost applicable which would include lender fees, broker fees, title fees and other third party charges as applicable. Requesting a detailed fee worksheet of the closing cost is always advisable when comparing loan offers across different companies.


  • Can I get a no closing cost loan? - On a new home purchase check with your real estate broker if you could negotiate for a seller contribution towards closing cost, FHA allows sellers to contribute up to 6% of the purchase price towards your closing cost. On a refinance, you can always opt for a higher rate which would allow your loan officer to apply a lender credit towards your third party charges which could reduce your fees significantly and possible make it a no cost loan for you.


  • Can the closing cost be financed? - On a refinance, YES, the closing cost can be rolled into the new loan amount as long as we do not exceed the maximum allowable loan amount for an FHA loan based on your property value. On a new home purchase, the closing cost cannot be rolled into the loan and you will have to bring the money on table at the time of closing along with the applicable down payment. On an FHA streamline refinance, the closing cost cannot be rolled into the loan and you are required to bring that money on table to close the loan. 


  • What is an escrow account and is it mandatory? - An escrow account is a third party account specifically opened to manage your property taxes and home owners insurance. Every monthly mortgage payment you make would include a portion of your property taxes and home owners insurance which would get deposited in an escrow account and when the property taxes and home owners insurance is due the Escrow company will ensure a timely payment for same. On an FHA loan an escrow account is mandatory both for new home purchase and refinance.


  • What is a Mortgage Insurance and can it be waived? - On FHA loans, there are two types of mortgage insurance applicable i.e. Upfront Mortgage Insurance Premium (UFMIP) and Monthly Mortgage Insurance Premium (MMIP). The UFMIP is a percentage of your loan amount and it is financed into the loan and it is a one time insurance. MMIP is paid monthly and it becomes a part of your mortgage payment. On an FHA loan, both the UFMIP & MMIP are mandatory and this requirement cannot be waived.

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