FHA Loan Programs
Refinance Programs
- Loans do not have to be FHA loans to be refinanced into a FHA loan
- Increased loan limits allow a low rate on loan amounts up to $729,750 in some counties - click here to see the loan limit for your county
- Refinance up to 97.75% of your home's value
- Apply here to learn if you qualify to refinance your mortgage into a fixed FHA mortgage & no out of pocket closing cost
- With the the help of FHA you maybe able to refinance your home into a lower monthly payment & be assured that your monthly principle & interest payments never increase
Home Purchase Mortgage
- The most important step in purchasing a new home is getting a pre-approval letter for a home loan
- A pre-approval letter allows you to look for a home and make an offer while giving the seller confidence in you as a buyer because you have already been pre-approved for your loan amount
Types of FHA Mortgages
- Fixed Rate Mortgages (Section 203b) - FHA issues mortgages made by qualified lenders to people purchasing or refinancing a home of their own
- Adjustable Rate Mortgages (Section 251) - Insures home purchasing or refinancing loans with interest rates that may increase or decrease over time, enabling customers to purchase or refinance their home at a lower initial interest rate
- Graduated Payment Mortgages (Section 245) - Enables a household with limited income but is expected to raise the total income to buy a home sooner by making mortgage payments which increase in size
- Growing Equity Mortgages (Section 245a) - Alike the Graduated Payment Mortgages, enables a household with limited income but is expected to raise the total income to buy a home sooner by making mortgage payments which increase in size however, the increased payments are applied to reduce the principal owed on the mortgage thus shorten the mortgage term
- Energy Efficient Mortgages - Energy Efficient Mortgages Program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficient features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage
- Mortgages for Condominium Units (Section 234c) - Insures the loan for units bought within a condominium building
- HUD offers temporary FHA Jumbo loan limits ranging from $271,050 to $729,750
- Change in loan limit intended to provide economic stability to America's communities and the maximum amount will only be applicable to high-cost metropolitan areas
- Previously the loan limits for high-cost metropolitan areas were capped at $362,790 however the Economic Stimulus Act of 2008 permits the FHA to insure leans on amounts up to 125% of the area median house price
Home Improvements
Guidelines for Home Improvement Loans (Purchase or Refinance)
- Section 203(k) program is the department's primary program for the rehabilitation and repair of single family properties
- This is an important tool for community & neighborhood revitalization and for expanding homeownership opportunities
- Apply here to see if you prequalify for the FHA 203K Rehab Loan
Reverse Mortgages
FHA Assistance for Seniors
- Homeowners 62 and older who have paid off their mortgages or only have a small balance remaining are eligible to participate in HUD's reverse mortgage program
- Homeowners receive payments as a lump sum or on a monthly basis (for a fixed term for a long as they live in the house) or on an occasional basis as a line of credit
- Unline typical home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home - lenders recover the principal plus interest when the home is sold & the remaining value goes to the homeowner or whomever he/she stated
- There are no asset or income limitations on borrowers receiving HUD's Reverse Mortgages & there are not limits on the value of homes qualifying for a HUD Reverse Mortgage
- See if you prequalify online for a HUD Reverse Mortgage here
Home Equity Loans - Home Equity Line of Credit (HELOC)
A Home Equity Loan or Line of Credit may be right for homeowners who prefer:
- Access to funds for a one-time expense
- Security of a fixed interest rate & fixed monthly payment
With a Home Equity Loan you get:
- The full loan amount up front
- Fixed interest rate
- Fixed monthly payment
- Predictable payoff schedule
- A Home Equity Line of Credit (HELOC) is a home loan that permits borrowing up to a pre-approved "credit line" using their home's equity
- FHA HELOC is credit that allows the homeowner to borrow up to a pre-determined amount set by the mortgage lender unlike a conventional home loan when the amount borrowed is the total amount financed
- HELOC allows flexibility to choose how you receive and use your money
- Apply here to prequalify
VA Loan Programs
- Veterans, active duty military personnel and certain members of the reserves and National Guard are offered a special VA Home Purchase Program & VA Refinance Loans
A to Z FHA Program Index
Online Prequalifications
Contact an Expert at FHA!
All Credit & Housing Counseling questions can be emailed to rsimon@creditadvocates.org. Don't forget to return to Credit Advocates' blog to continue learning about other Housing and Credit Counseling topics!
rsimon@creditadvocates.org | creditadvocates.org
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