The Federal Housing Administration, like the VA, does not actually lend money. It simply provides government backing in case the borrower defaults on the loan. Because of this backing, though, it makes it easier for some people to secure a home loan, and since its inception in 1934 it has backed more than 35 million mortgages.
FHA mortgages usually require a much lower down payment than a conventional loan, and there is no stated minimum credit score requirement either. However, there are still a few different FHA loan features that you need to understand before making your decision.
FHA Purchase Loans
An FHA loan from the Federal Housing Administration offers homeowners flexible and affordable home loan options for 15– or 30-year repayment terms. These loans are among the most competitive and popular home financing options available today and the mortgage rates are some of the lowest in the market. An FHA Purchase loan can be extremely beneficial for potential homeowners who don’t have a large down payment or less-than-perfect credit scores.
FHA Refinance Loans
Refinancing your FHA loan can reap many benefits in today’s tough mortgage market. Jumbo loan options are available to those in high-cost areas and cash-out options are available to those who would like to access the equity in their home. This might also be a great option if you simply want to lower your interest rate or monthly payment. Qualifying can be easy with relaxed credit requirements and an attentive, experienced loan officer to guide you through the process.
FHA Streamline Refi
A lot of home owners have lost a lot of their equity in their homes over the past few years. If you currently have an FHA home loan you may still be eligible for a refinance to a historically low interest rate even if you don’t have any equity or are even upside down in your home. There’s no appraisal needed, and you could end up saving hundreds each month.
Rehab Loan or Refinance
If you are looking to buy a home in need of some restoration or already own one that needs some repairs or upgrades, the FHA’s 203(k) Rehabilitation Loan or Refi may be the right choice. This loan can be used on minor remodeling projects (as long as it is not about structural repairs) and important repairs or replacements of important components of the house. This may be a better option than seeking separate financing for these types of updates.
If you’re at least 62 years of age and have built up a sufficient amount of equity in your home, you can refinance your mortgage now to have it pay you. It isn’t difficult to qualify for a reverse mortgage, and we can help you through the entire process. There are no income or credit requirements, and the mortgage cannot be outlived as long as at least one homeowner still lives in the home and all the taxes and insurance fees are up to date.
Low Credit Score? We Can Help
The current economic crisis has had a huge impact on the housing market, but there are still a lot of options available to you. If you’ve had trouble paying some bills or you’ve been turned down for a home loan in the past, call us and we will explore all your available FHA options to find you the right answers. We also have access to a variety of lenders that will work with those who’ve fallen on hard times and need to buy or refinance a home. Get a free quote today or call us at 888-407-0010 to speak with one of our experience professionals.