FHA loans have been helping people become homeowners since 1934. The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so that you can be eligible for a better deal. Many homeowners are taking advantage of FHA loans if they have little to no money for a down payment, little to no credit, or bad credit. What has been increasingly popular is that current homeowners are refinancing from high interest rate and/or adjustable rate loans into a FHA loan.
PURCHASE YOUR HOME USING A FHA MORTGAGE
Benefits of purchasing a home with the FHA Mortgage Program
Credit Score as Low as 580
3% Down Payment for Purchases
Low 30 year Fixed Rate with No Prepayment Penalty
6% Seller Credit to Help with Closing Costs
Speedy Mortgage Processing
Manufactured Homes Allowed
Non Traditional Credit OK
Higher Loan Limits
Chapter 13 Buyout Available
Non Occupying Co Borrower Allowed
Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
Want a fixer-upper?
FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.
Need help with you down payment?
No problem. Call us and we will tell you how to get down payment assistance.
Private Mortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided by the value of your home — is greater than 80 percent.
PMI isn't a bad thing — it allows you to make a lower down payment and still qualify for a mortgage loan. In fact without PMI, many of us would not be able to purchase our first home.
For loans made after July 1999, lenders are required by federal law to automatically cancel Private Mortgage Insurance (PMI) when the loan balance falls below 78 percent of your purchase price — not when you achieve 22 percent equity, which will happen much more quickly with rising property values. (Certain "higher risk" loans are excluded.) But you have the right to cancel PMI (for loans made after July 1999) once your equity reaches 20 percent, regardless of the original purchase price.
You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are - or will be - located in mobile home parks.
REFINANCE YOUR HOME USING A FHA MORTGAGE
Benefits of refinancing into a FHA Mortgage Program
Cash Out up to 95% Loan to Value Ratio (LTV)50% Debt to Income Ratio (DTI)
Low 30 year Fixed Rate with No Prepayment Penalty3% Down Payment for Purchases
Credit Score as Low as 580
Speedy Mortgage Processing
Non Traditional Credit OK
Commonsense Underwriting
Chapter 13 Buyout Available
Higher Loan Limits
Manufactured Homes Allowed
Non Occupying Co Borrower Allowed
Refinance your home using FHA Loan
As we know the “Credit Crisis” is causing Lenders to tighten credit and loan guidelines. That is making it increasingly difficult for everyday Homeowners to refinance into Lower Fixed Rate mortgages. FHA loans are not as difficult as it use to be to qualify. Now our Government is opening FHA guidelines just for homeowners like yourself to remortgage their homes from high interest rate and/or adjustable rate loans in to low interest rate, 30 year fixed loans.
Two Types of FHA Refinancing
Rate & Term Refinance
Cash-Out Refinance
FHA Rate & Term FHA Refinance will lower your interest rate and payment into a secure 30 year fixed loan.
FHA Cash-out Refinance will allow you to take cash out of your home for home improvements, business capital, property taxes, debt consolidation, and more. FHA Cash-out refinance loans on properties owned more than one year prior to the refinance are permitted on owner occupied principal residences only, and are limited to 95% of the appraised value plus the allowable closing costs.
The following are basic requirements of a cash-out FHA refinance home loan:
The subject property must have been owned by the borrower as his or her principal residence for at least 12 months preceding the date of the loan application.
If said property is encumbered by a mortgage, the borrower must have made all of his/her mortgage payments within the month due for the previous 12 months, i.e., no payment may have been more than 30 days late and is current for the month due.
Applies to owner occupied properties only
The property that is security for the refinanced mortgage must be a 1- or 2-unit dwelling.
Loan amounts may not exceed the maximum loan limits for the area.
Subordinate financing may remain in place, but subordinate to the FHA insured first mortgage, regardless of the total indebtedness or combined loan-to-value ratio, provided the homeowner qualifies for making scheduled payments on all liens.
All borrowers must credit qualify.
Any co-borrower or co-signer being added to the note must be an occupant of the property. Non-occupant owners may not be added in order to meet FHA's credit underwriting guidelines for the mortgage.
Financial help for seniors using Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
Acute Financial Solutions is offering free FHA loan consultation, Call now at 407-931-1284 or complete the form below.
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Acute Financial Solutions Company 3355 W. Vine Street, Suite 102 Kissimmee, Florida 34741-4663
