Today's featured FHA question

"Should we use an FHA direct lender or FHA broker to get us our mortgage loan?"

Alfanso & Jennifer - Maine

"There are advantages and drawbacks to both as FHA lenders and brokers may have different requirements, rates and program guidelines..."

FHA 203k Home Loan Program

When a home buyer wants to purchase a home in need of modernization, they would normally have to take a loan to buy the home, then get a construction loan to make the repairs to the home and finally obtain a permanent mortgage once the repairs are completed. The FHA 203k rehab loan was designed to simplify the process of buying a home that needs work and save you money

FHA 203k loan - Quick Facts:

Your FHA 203k lender will loan you the money to buy your home AND the additional money to complete any repairs all in one mortgage
You still get a low fixed rate (usually slightly higher than a regular FHA loan)
You are only required to put down 3.5% and this can be a gift
Your FHA lender may help you determine which repairs and improvements will yield the greatest results
FHA 203k loans require that you occupy the property as your primary residence
The property must be 1-4 units
Use the 203k loan to convert a single family property to a multi or vice versa
FHA 203k maximum loan limits vary depending on geographical location (ask your loan specialist what your maximum loan limit is)
FHA 203k rates are slightly higher than a normal FHA home loan
You can refinance a property with 203k as well
You can get an FHA purchase rehab loan on a mixed use property and condos

FHA Loan Update

August 2nd, 2011

FHA Loan Requirements

What will you need? Click the link below to read about FHA Loan Requirements, credit and income requirements, FHA lender guidelines and the documents that may be required by your FHA lender....

Using a Mortgage Broker?

As of April 1st, 2011, mortgage originators will no longer be allowed to collect Yield Spread Premium (YSP) - a fee charged by mortgage brokers that is normally paid for by the lender upon closing a purchase or refinance transaction. This can mean higher up front fees for [you] the consumer....

FHA Mortgage Insurance Increase

On February 14, the FHA announced a new premium for FHA single-family mortgages, increasing the annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30-year and 15-year loans.

How will this affect you? [click]

For Home Buyers

Everything you need for Buying a Home FHA

FHA loans allow you to buy a home at very affordable terms. With FHA's low down payment requirements, light qualification guidelines and competitive fixed rates, millions of American's have turned to an FHA loan for their home purchase...

More about FHA loans for buying a home

FHA Refinance

Refinancing With a FHA Loan

If you are thinking about a refinance, an FHA refinance might be the solution. FHA loans offer rates just as low as conventional loans and in many cases are easier to qualify for...