FHA Mortgage Loan Options

FHA Loan Features & Requirements

What makes an FHA loan unique is that it’s built specifically for a first time home buyer so that affording your first home loan is possible. There are even FHA-approved condos if that’s the route you’d like to go. We offer two types of FHA loans – purchase and refinance.

General Features

Most FHA loans have the following features:

  • Insured by the Federal Housing Administration (FHA)
  • Down payments as low as 3.5%
  • FHA loans come with a 15, 20, 25 or 30-year term
  • FHA loans have a fixed interest rate

FHA Purchases

Here’s some more important information to know:

  • Higher debt to income ratio (in excess of 45%) is possible with positive loan factors
  • Tailored to borrowers with lower credit scores
  • No income limitations
  • First Time Homebuyer Counseling in generally not required
  • Borrower(s) must pass Credit Alert Interactive Voice Response System (CAIVRS) clearance – no delinquency claims for any federal related debt (i.e. – student loans or government backed mortgage debts)
  • Non-Occupant co-signers are acceptable if they are the Borrower’s family member defined by HUD
  • Condominium financing available if the project appears on HUD’s approval roster
  • Manufactured Housing is permitted dependent on certain criteria
  • Less stringent credit guidelines regarding collection accounts on credit
  • More forgiving seasoning requirements regarding foreclosure and bankruptcy

FHA Refinancing

  • Non-credit qualifying Streamline Refinance
    • No appraisal required
    • Loan amount cannot exceed original FHA loan amount
    • Credit score is required, and only all mortgage debt is required to be provided on credit report
    • A net tangible benefit to the Borrower must apply
    • No maximum CLTV (Investor overlays may apply)
    • Maximum amortization period is limited to lesser of remaining amortization period of the existing mortgage plus 12 years OR 30 years
  • Rate and Term Refinance
    • Permits a higher LTV at 97.75% provided the Borrower has occupied subject for at least 12 months. Conventional max LTV is 95%
Read more  FHA Home Loan Application Pre Approval Process

How are FHA loans different than conventional loans with mortgage insurance?

Monthly Mortgage insurance (MMIP) on FHA loans are for the life of the loan. Also, FHA loans have upfront mortgage insurance premium in a lump sum plus the MMIP, whereas Conventional products contain mostly monthly insurance payments.

Mortgage Calculators for FHA Loans

Mortgage calculators are a wonderful tool to help you gauge what your first home will cost and how long it will take you to pay off your first mortgage. We have several types of mortgage calculators to help you know just what you can afford when you’re ready to buy your first home. You can even determine what you would need to do to pay off your mortgage early. We’ve included a few links below to specific mortgage calculators.

Which Mortgage is Better for Me?

How Much Home Can I Afford?

Mortgage Early Pay Off

Mortgage Resources

We’re here to help you throughout the entire process.

Mortgage Checklist – what to be mindful of before starting the mortgage process

5 Pitfalls to Avoid – practical tips for being best positioned for your mortgage

FHA Success Story – what matters when you’re buying a home for the first time