FHA Loan Benefits
Federal Housing Administration (FHA) loans are insured by the US government; an excellent option for homeowners wishing to refinance or home-buyers with limited resources looking to purchase. Our mortgage company is here to assist with your mortgage for buying or refinancing your home. Contact us today to speak with a mortgage specialist.
- 3.5% down-payment
- Co-signers allowed
- Seller can pay up to 6% of buyers’ closing costs
- Refinance up to 96.5% of the value of your home (to pay off existing mortgages)
- Recent job changes considered
- 100% gift money allowed from an immediate relative, buy your home with no money down
- Cash-out refinance loans available: up to 85% of the home value
- FHA 203k loans (home rehab loans) available for purchase or refinance
- FHA Streamline loans available to refinance existing FHA loans. Can mean lower closing costs and reduced borrower requirements
Why people get FHA loans
The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories.
FHA loan qualification requirements
To qualify for FHA loan, a mortgage borrower must meet the minimum standards of the Federal Housing Administration’s (FHA) mortgage program, which include
- Showing a minimum credit score of 550;
- Having verifiable income and employment; and, proving
- Proving legal resident status of the United States.
The program is available to first-time home buyers, repeat home buyers, and can be used to refinance an existing mortgage.
The FHA loan does not enforce a maximum income limitation.
FHA Mortgage Rates Lower Than Conventional
The FHA loan is known as one of the most popular low-down payment mortgages among borrowers with less-than-perfect credit.
- Address to your place of residence (past two years)
- Social Security numbers
- Names and location of your employers (past two years)
- Gross monthly salary at your current job(s)
- Pertinent information for all checking and savings accounts
- Pertinent information for all open loans
- Complete information for other real estate you own
- Approximate value of all personal property
- Certificate of Eligibility and DD-214 (for veterans only)
- Current check stubs and your W-2 forms (past two years)
- Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
In addition, you will need to pay for a credit report and appraisal of the property.
Don't Forget About Your Closing Checklist
As the buyer and borrower, you will have items on your checklist that are required by your lender, the seller, and even the title company.
The closing checklist covers all the fees to be paid, the information to be provided, and the disclosures to be signed before the title is conveyed to you. Having this checklist ready helps you stay on track as a buyer, and ensures that your closing goes the way you expect.
All parties at the closing should have valid ID.
POLICY OF TITLE INSURANCE
You must pay for title insurance that guarantees the property is free of previous claims or liens.
Before you can close on the property, you need to secure homeowner’s insurance, which insures the property in the case of damage.
You must bring all funds agreed upon, in the form of a cashier’s check or via electronic wire.
Take the time to discuss the items on your checklist with our loan officers, to make sure you forget nothing. You will have the peace of mind that after the closing settlement and you’ll be able to move into your new home.
Why a Lending Hand Mortgage professional?
Lending Hand Mortgage (NMLS #373538) prides itself on providing unparalleled customer service and earning satisfied clients. Our purpose? Satisfy the mortgage needs of our customers and exceed their expectations.
We work with underwriters and loan processors from the application date until closing to gather necessary documentation and guide the file through the approval process.
Our mortgage loan originator is your main point of contact throughout the entire home loan process.
First and foremost, our loan officers are committed to a height standard of honesty and integrity.