FHA Loans for Homebuyers
------------
FHA Refinancing
------------
Need to Know
------------
FHA Programs for Homebuyers
------------ overview |
|
FHA Fixed Rate Mortgage
FHA Fixes Benefits For First-time Homebuyers
FHA loans benefit those who would like to purchase a home but haven't been able to save enough money for
the purchase: like recent college graduates, newlyweds, or people who are still trying to complete their
education. It also allows individuals whose credit has been marred by bankruptcy or foreclosure to
qualify for an FHA loan.
 |
Now is the time for an
FHA HOME LOAN
|
The most popular FHA home loan is the 203(b) also called FHA fixed-rate loan. The FHA Fixed-Rate Mortgage often
works well for first-time homebuyers because it allows individuals to finance up to 97 percent of their home
loan, which helps to keep payments low and closing costs to a minimum. The FHA Section 203(b) home loan
is also the only loan in which 100 percent of the closing costs can be a gift from a relative,
non-profit, or government agency.
FHA Section 203(b) is the centerpiece of FHA single-family insurance programs. It developed from the
original FHA program that helped save homeowners from default in the 1930s, opened the suburbs for
returning veterans in the1940s and 1950s, and shaped today's modern mortgage finance system. Today,
FHA One- to Four-Family Mortgage Insurance is still a vital tool that allows the Federal Government to
expand homeownership opportunities for first-time homebuyers and borrowers who would not otherwise
qualify for conventional loans on affordable terms. FHA One- to Four-Family Mortgage also serve
homebuyers who live in areas where mortgages may be harder to obtain.
FHA Fixed Rate Benefits
FHA Lowers Your Down Payment
In contrast to conventional mortgages which frequently require 10% or more of the purchase price as downpayment,
FHA single-family mortgages insured under FHA Section 203(b) can have down-payments as little as 3%.
In some cases, FHA insurance allows homebuyers to finance approximately 97% of the value of their home
purchased with their FHA mortgage.
FHA Finances Your Closing Costs
With most conventional loans, borrowers must pay closing costs, which include many fees and
charges associated with buying a home, equivalent to 2-3% of the price of the home. Fixed Rate FHA Mortgages
allows the borrower to finance much of their closing costs, thus reducing the up-front cost of buying a home. FHA
mortgage insurance is not free: borrowers pay an up-front insurance premium (which may be financed)
at the time of purchase, as well as monthly premiums that are not financed but added to the regular
mortgage payment.
FHA Limits the Lenders Fees
FHA imposes limits on some of the fees that lenders may charge the homebuyer. For example, the loan origination
fee charged by the lender for the administrative cost of processing the loan may not exceed 1% the
amount of the mortgage.
FHA Protects Mortgage Amounts
To make sure that FHA programs serve low- and moderate-income people,
FHA sets limits on the dollar value of the mortgage loan. HUD sets limits on the amount that may be insured.
FHA limits are there to protect homebuyers, and may vary over time and by place, depending on the cost of living
and other factors (higher limits also exist for two- to four-family properties).
|
|
|
|
to Buying a Home with an FHA Loan
|
|
> FHA Step 1
How much can you afford?
> FHA Step 2
FHA says, "Know your rights."
> FHA Step 3
Shop for an FHA loan.
> FHA Step 4
Shop for a place to call home.
> FHA Step 5
Make an offer for the home.
> FHA Step 6
Get a home inspection.
> FHA Step 7
Your homeowners insurance.
> FHA Step 8
Sign on the dotted line and move in.
|
|
|
|
 |
|
|
|
|
-- -- -- -- -- -- -- --
Receive cash back and save money when you buy or sell your home.
-- -- -- -- -- -- -- --
Get a VA loan to buy a home, to build a home, to refinance your mortgage, or to simultaneously purchase and improve a home.
VA Mortgage News
Browse through articles about
VA home loan programs,
VA benefits, home buying and selling,
VA mortgage shopping
and insurance.
Pioneer Military Loans
Serving the military community with personal loans from $500 to $10k.
-- -- -- -- -- -- -- --
|
|
|
|
|
|
|
|
|
