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FHA HUD Program

An FHA Loan For The First Time Home Buyer

So, you’re ready to buy a home! Good for you! An FHA loan is an ideal way for the first time homebuyer to finance a real estate purchase. Government backing allows for easier qualifying and a lower down payment than many conventional loans programs – two features many(?) new homeowners love. These mortgages are chock full of benefits, such as:

  • Down Payments as Low as 3.5%
  • Limitations on Closing Costs
  • Relaxed Qualifying Standards
  • Competitively Low Interest Rates
  • No Penalty for Early Payoff or Payments Toward Balance

If you’re wondering where to begin, let us help! Contact us today or call 1-866-663-0826 for more information.

Refinance With An FHA Mortgage Loan

An FHA mortgage loan is not just for home purchases. The program can also be used to refinance a home. Recent changes in FHA guidelines may make it more affordable for certain borrowers to refinance their existing loans. And, streamline refinancing can be used if you already have an FHA mortgage in good standing. The program helps if you want to get a lower interest rate/payment, reduce the term of your loan or switch from an ARM to a fixed-rate loan. Streamlining can require less paperwork and underwriting.

The savings you may get with a refinance loan often justifies the costs. One of our loan specialists can help you calculate your break-even point. Get in touch with our refinance team today to see which type of loan works for you.

Qualifying For FHA Loans Is Straightforward

Because FHA loans are backed by the government, you’ll need to meet the minimum qualifying requirements for both FHA and the lender. Don’t worry; you don’t have to go through the process twice. Our licensed loan specialists can screen you for both. They’ll take a look at your income and credit and other credentials to make sure you are eligible for the program, and whether you meet our own lending requirements.

They’ll need to gather some documents and ask you some questions. Sometimes these can get a little personal. We like our borrowers to know that we’ll be open and honest about what you can expect during the loan process, and the process goes more smoothly if you’ll be candid during the qualifying process. If you’ve had some financial trouble, it’s best to tell us about it upfront. Or, if you’ve been through a divorce, we’ll need to know that early on, too. Our loan officers aren’t here to judge you. They just want to do everything they can to get you funded. We’ll keep you well informed along the way so there aren’t any surprises. Once we have the information we need, our in-house underwriters can make a decision on your loan.

6 steps to an FHA purchase loan:

  1. Select Your Lender – That’s Us!
  2. Get Pre-Qualified
  3. Go House Hunting
  4. Get an Appraisal
  5. Application, Processing and Underwriting
  6. Close on Your Loan and Move In!

Not all of these steps are mandatory, and don’t necessarily have to be followed in this order, but this list may help guide your home purchase process. A mortgage doesn’t have to be scary. With the right lender to help tame the process, a new home could be yours sooner than you think. You’re already off to a great start. You’re here, aren’t you? Now take the next step and talk to a loan officer licensed in your state. They can give you an idea of how much house you can afford. A price range will make it easier for you or your real estate agent to narrow down a few properties that you can afford and best meet your needs. Contact one of our loan specialists now.

FHA UFMIP and MMIP

These are acronyms for Up Front Mortgage Insurance Premium and Monthly Mortgage Insurance Premium — two types of FHA insurance premiums borrowers pay when they use this program to finance a home loan. Let’s talk about UFMIP first. This is a one-time fee that is charged up front. It can be rolled into your loan or paid in one lump sum at closing. It’s a type of mortgage insurance that provides the lender with protection against losses should the borrower ever default. In turn, your lender can offer favorable terms like low down payments and easier qualifying.

MMIP is the mortgage insurance you’ll pay monthly along with your principal and interest. When your lender calculates your monthly payments, your MMIP will be included. Over the years, you’ll pay less and less for MMIP, but it will likely always be there, for many borrowers. Like UFMIP, this insurance also helps secure your loan for the lender.

We told you how FHA insurance helps the lender, but how does it help you as a borrower? These fees pay for resources like mortgage counselors and foreclosure counseling should you ever get into financial trouble. But, these counselors aren’t just for borrowers in distress. Talk to HUD-approved housing counselors to get tips on preparing for a home purchase. They can also help you understand your rights as a buyer. HUD has links to foreclosed properties for sale. Who knows, maybe you’ll find a bargain.

Both UFMIP and MMIP take the burden from taxpayers. FHA is the only government agency that operates solely from self-generated funds. In other words, it costs taxpayers nothing.

UFMIP and MMIP can vary depending on the loan. Your best bet is to contact one of our loan officers now to get these rates.

Anyone care for a bit of history?

If you’re still reading, bravo! We’re impressed! FHA stands for Federal Housing Administration. It all started in the 1930’s under Franklin Delano Roosevelt’s “New Deal” to help America recover from the Great Depression. FHA is now part of the U.S. Department of Housing and Urban Development (HUD). FHA provides mortgage insurance for lenders so that they can offer loans even if conventional lenders may not. Because of FHA, many Americans who might not otherwise afford to buy a home have been able to achieve the DREAM.

Fun FHA Facts:

  • FHA was created in 1934
  • FHA is the largest mortgage insurer in the world
  • Over 34 million homes have been insured by FHA since it began
  • HUD is created in the U.S. Department of Housing and Urban

Development Act of 1965

  • FHA goes under the HUD umbrella in 1965
  • American homeownership reached its record high of 69.2% in 2004 thanks in part to FHA

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