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FHA Mortgage Loan
Programs
What is a FHA Mortgage
Loan? FHA mortgage loans are designed to make
housing more affordable for first-time homebuyers and
those with low to moderate income.
Both fixed- and adjustable-rate FHA loans are available,
and in most states, an FHA loan can be used for
refinancing. The difference is, they're insured by the
U.S. Department of Housing and Urban Development (HUD).
With FHA Insurance, eligible buyers can put down as
little as 3% of the FHA appraisal value or the purchase
price, whichever is lower. Qualifying standards are not
as strict and the rates are slightly better than with
conventional loans. Apply Now for
a FHA Home Loan!
What are the benefits of FHA Mortgage Loans?
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FHA mortgages can
require smaller down payments.
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FHA allows the borrower
to finance both the closing costs and the PMI.
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HA permits households to
carry more debt and still qualify for a mortgage.
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Borrowers pay a
generally smaller monthly premium (0.5) for FHA
insurance coverage than PMI.
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FHA allows borrowers to
use gifts from others for the entire down payment.
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FHA is more lenient than
conventional lenders on explainable credit issues.
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FHA loans are assumable.
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Apply Now for a FHA Home Loan!
What's the downside to a
FHA Mortgage Loan? There is a maximum on the loan
amount. This amount is not nearly so high as
conventional loans. The reason the loan amounts are less
is that the Federal Housing Administration is geared
toward first-time buyers or borrowers who cannot afford
higher-priced homes and the cash down payments they
would require. Apply Now for a
FHA Home Loan!
How to Qualify for a FHA Mortgage Loan: The
Federal Housing Administration used to qualify by a
residual income method that only a statistician could
appreciate. Now, they use, just like conventional loans,
gross qualifying, but with the following higher ratios:
FHA now accepts computer
underwriting. Its computer underwriting will allow lower
credit scores and the lender can issue an approval
within one to two hours from the beginning of
application. It used to take as long as 30 to 45 days.
Apply Now for a FHA Home Loan!
An important thing to keep
in mind is that if you pay off FHA loan early, part of
the MIP, Mortgage Insurance Premium, will be refunded to
you. The longer you hold the loan, the less is refunded.
Apply Now for a FHA Home Loan!
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