Logo

 
Apply Now
Banner
Apply Now
Apply Now
FAQ
1. How can “The FHA Loan” help me buy a home?
  FHA insured mortgages offer many benefits and protections that only come with FHA:

Easier to Qualify: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

Less than Perfect Credit: You don't have to have a perfect credit score to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.

Low Down Payment: FHA loans have a low 3% down payment and that money can come from a family member, employer or charitable organization as a gift. Other loan programs don't allow this.

Costs Less: FHA loans have competitive interest rates because the Federal government insures the loans. Always compare an FHA loan with other loan types.

Helps You Keep Your Home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, FHA has many options to help you keep you in your home and avoid foreclosure
  TOP
2. What are the basic eligibility requirements for FHA financing?
  FHA insures mortgages made by approved lenders to individuals and non-profit and government agencies that are approved to participate in HUD's programs; HUD does not loan money to homebuyers.

Generally, to be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state. Lenders will verify income, assets, liabilities, and credit history for all parties on the loan. With an FHA loan, you cannot take an ownership interest in a property without qualifying for the loan.

FHA's mortgage programs do not typically have maximum income limits for qualifying, although you must have sufficient income to qualify for the mortgage payment and other debts. Income limits may be present when qualifying for down payment assistance or other secondary financing programs (including those funded by HUD) that may be used in conjunction with an FHA loan.

FHA does not have minimum credit score requirements, although past credit performance serves as the most useful guide in determining a borrower's attitude toward credit obligations and predicting a borrower's future actions.

First Time Homebuyer

FHA defines a first-time homebuyer (FTHB) as an individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase (closing date) of the property. A FTHB includes any individual that has only owned with a former spouse while married. A FTHB would also include an individual who has only owned a principal residence not permanently affixed to a permanent foundation, or a property that was not in compliance with State, local, or model building codes and cannot be brought into compliance for less than the cost of constructing a permanent structure.
  TOP
3. Where can I find FHA's policy on gift funds?
  An outright gift of the cash downpayment is acceptable if the donor is the borrower's relative, the borrower's employer or labor union, a charitable organization, a governmental agency or public entity that has a program to provide homeownership assistance to low- and moderate-income families or first-time homebuyers, or a close friend with a clearly defined and documented interest in the borrower. For complete information about FHA's policy on gift funds, contact your mortgage lender.
4. How "The FHA Loan" Works
  Now, FHA does not make loans or guarantee loans. It insures loans. The insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent. Without further approval from FHA, Pine State Mortgage is an approved lender and authorized to:
 
Bullet Take loan applications
Bullet Process loan applications
Bullet Underwrite and close "The FHA Loan"
  TOP
5. Competitive Rates & Terms
  There is little or no adjustment to the interest rate for an "The FHA Loan", as the rates vary within .125 percent of a conventional loan.
 
Bullet Mortgage insurance is funded into the loan, meaning a premium of 1.5% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
Bullet Borrowers can finance 97% of the purchase price and put down 3 percent. In some instances, when combined with other types of loans or gifts, the down payment can be zero
Bullet Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.
  TOP
www.TheVAHomeLoan.com | www.UPickHome.com | www.TheRDLoan.com