The easiest home loan!
FHA loans reflect the Federal Government's commitment to expanding homeownership and home buying opportunities through reduced down payment requirements, mortgage insurance charges, and relaxed underwriting standards when compared to conventional mortgage loans.
FHA has recognized Washington DC and other areas as a high housing cost area and has increased the maximum one family home mortgage amount to $234,650 increasing the number of homes which qualify for FHA insured financing. Nationally, the limits are as follows:
High cost area
The FHA loan program is the easiest way to get a home loan because the program requires only 3% cash (which may be a gift) into the transaction and is significantly more forgiving of past credit issues. We will look specifically at the last two years of your credit history. If there are some credit problems, we may be able to overcome them with sufficient explanations and supporting documents of why the issues occurred. Never rule yourself out of qualifying for FHA loan because of credit, prequalify and have me review your credit. I have more information on FHA credit requirements available
This page is focused on the using FHA programs to purchase a home. If your interest is in refinancing an existing FHA or VA loan please go to my refinance center. For extensive information on the FHA 203(k) program to remodel a home please see my renovation loans page.
There are some credit issues that we must allow for a certain time to pass before you can qualify for a FHA loan. They are follows:
FHA requires any outstanding collection accounts, judgments, charge off's be paid in full before closing. If you have had some credit difficulties in the past, compensating factors can often get your loan approved.
If you currently have an FHA loan and are considering refinancing to lower your monthly housing cost there is a simple low cost " FHA streamline" refinance process which you should consider. One of the important features of the FHA program is that the loan is assumable should you sell in the future. If interest rates rise, an assumable mortgage may be the difference between being able to sell your home or not.
Other FHA Loan Programs
The teacher next door is a program offering up to a 50% discount from the HUD asking price to teachers living in the community where they work.
The officer next door is a program offering up to a 50% discount from the HUD asking price to police officers living in the community where they work.
The FHA 203(k) allows homeowners and homebuyers an opportunity to purchase or refinance existing housing and finance up to 110% of the costs needed to improve the home. The 203(k) is ideal for "fixer-uppers" or "handyman specials". The 203(k), a pioneer in this type of financing, was known as a horrendous web of paperwork and long delays. However, in 1994 HUD recognized the need to assist the aging housing stock and restructured the 203(k) program and is now one of the fastest growing programs in the country.
FHA offers an adjustable rate mortgage which allows many people to buy a home with very low payments and down payment requirements. Useful if you have a debt to income issue or just want to buy more home.
What is a HUD home? When someone with a FHA (HUD) insured mortgage can't meet the payments, the lender forecloses on the home. FHA then pays the lender what is owed; and HUD takes ownership of the home. Then they sell it at market value as quickly as possible. HUD uses an outside service to sell the homes via a auction format. You must use a Realtor® to purchase a HUD of home. For additional information on buying repossessed homes located on the foreclosure page. For search information on foreclosed homes www.ushud.com . They offer listings of properties for sale.
Streamline RefinanceFHA has permitted streamline refinances on insured mortgages since the early 1980's. The basic requirements of a streamline refinance are:
I have included a page on how to calculate your qualification ratios.
I have included a page on documentation requirements.
Prequalify for your Easy Home Loan.