FHA Loans

FHA loans are flexible. FHA loans are secure. FHA loans reflect Government's commitment to expanding homeownership through the FHA loans program with reduced down payment requirements and relaxed underwriting standards compared to conventional loans.

FHA loans recognize many areas as a high housing cost areas and has increased the maximum FHA loans amounts. The FHA loans limits ae:

Find the FHA loans limit in your county.

FHA loans are an outstanding choice for first time homebuyers because FHA loans require only 3% cash (which may be a gift) and are more forgiving of past credit issues. FHA loans look at the last two years of your credit history. If there are some credit problems, FHA loans can overcome them with explanations and supporting documents. Never rule yourself out of qualifying for FHA loans because of credit, prequalify and have me review your credit. I have more information on FHA Loans credit requirements available

This page is about using FHA loans to purchase a home. If you are refinancing existing FHA loans please go to my FHA Loans refinance center.

FHA requires any outstanding collection accounts be paid before closing. If you have had some credit difficulties in the past, FHA loans compensating factors can get you approved.

There are some credit issues that must allow time to pass before you can qualify for them.

Two years from the date of discharge for a bankruptcy
Three years from the date of foreclosure

ADVANTAGES

They are assumable
With their no cost streamlined refinancing you can lower your payment at NO COST to you.
The ARM has the best features on the market with a 1% annual interest rate cap and a 5% lifetime cap.
Lower required down payment
Higher qualifying ratios of 29% for housing and 41% for total indebtedness
More flexible underwriting standards
Gift funds for down payment and closing costs are allowed
Up-front Mortgage Insurance Premium can be financed
Less cash out of pocket required
The lowest down payment (as low as 3%, never more than 5%) requirement of any non-subsidized financing program
Seller allowed to pay prepaid expenses
Seller can contribute up to 6% of purchase price toward closing cost and discount points

They have permitted streamline refinances on insured mortgages since the early 1980's. The basic requirements of a streamline refinance are:

The mortgage to be refinanced must already be insured.
The mortgage to be refinanced should be current
The refinance must lower your monthly principal and interest payments.

For more information go to the FHA Loans Streamline Refinance page.