FHA Loan Programs

Government home financing has become very popular as the FHA loan programs have expanded for first time home buying and refinancing opportunities. Over the last three decades, no finance vehicle has help more first time homebuyers than the FHA loan programs. FHA mortgage programs continue to evolve with cash out refinancing, home rehabilitation and energy efficient initiatives. Our FHA Loan Company assists consumers with government loan programs for refinance and purchase. Homebuyers need to come up with 3% to finance the specified home. Borrowers can take out FHA loans up to $729,750 if you are buying in one of the more expensive neighborhoods. Over the last few years, HUD has implemented significant changes to the FHA loan programs. Just a few years ago, the maximum loan amount for FHA insured amount was only at $362,790. Congress finally passed the bill approving FHA Loan Limits for 2013 and 2014.

Some recent changes to the FHA loan program to note:  FHA home purchase loans require a 3.5% down-payment. Last year the maximum loan to value was 97% and now it is 96.5%.  The FHA streamline refinance program now prohibits borrowers from financing the lender closing costs.  FHA streamline borrowers will now have to pay for their closing costs out of their pocket.  In other FHA news, the House Approves Bill to Raise FHA Insurance Premiums. This measure would gradually raise the insurance premium from 0.5% to 0.85% and then to 0.9%.

If you are considering a FHA loan program, you will need to document your income, employment and in most cases the proposed mortgage payments must be less than 43% of their gross income after monthly expenses like car payments and credit card bills.

FHA streamline loans were created to simply the refinancing process for borrowers who already have a FHA loan. The Streamline eliminated the pre-payment penalty and cut through the time consuming steps like appraisals.

Rate & Term Refinance with FHA Mortgage can be taken out to 96.5% Loan to Value if you only need to revise your 1st or 2nd mortgage.

Cash Out Refinance Loans - can be taken out to 85% Loan to Value if you need additional cash beyond the mortgage refinance. If you need to consolidate unsecured debt, then you will need a "cash out" loan.

The interest rates for FHA refinance and home purchase loans remain competitive and comparable to conventional Fannie Mae mortgage rates.

FHA loan requirements have seen some dramatic changes recently but the income documentation requirements have stayed the same. For all FHA home loans, borrowers will need to supply W2's, pay-stubs and full tax returns from the last few years

Many distressed homeowners are unable to meet the requirements for a FHA mortgage refinance.

Consider Hope for Homeowners, the FHA Short Refinance and HAMP if you need relief or a refinancing alternative.