FHA Loans for Homebuyers
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FHA Refinancing
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Need to Know
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FHA Programs for Homebuyers
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FHA Growing Equity Mortgage
FHA Growing Equity Mortgages are home loans tailored to meet the needs of first time homebuyers or
young families who are often not able to meet the many upfront and monthly costs involved.
FHA Growing Equity Mortgages are also called FHA's Section 245(a). These loans enable those who currently have a limited
income, but expect their monthly earnings to increase, to purchase a home. Payments start small and increase gradually over time.
As the mortgage payments grow, the additional payment is applied toward the principal on the loan, thus reducing
the mortgage term.
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Now is the time for an
FHA HOME LOAN
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Growing Equity Mortgages also allow homeowners who are interested in further reducing the term of their mortgage to
apply scheduled increases in their monthly payments to the outstanding principal balance.
Through this and other types of mortgage insurance programs, FHA Growing Equity Mortgages help low and moderate-income
families purchase homes by keeping the initial costs down, therefore allowing them to purchase a home sooner than
they would be able to through conventional financing programs.
FHA Growing Equity Mortgage Availability
FHA GEMs are eligible for insurance under Section 203(b) for one to four family homes;
Section 203(k) for home purchase, refinancing, or rehabilitation; Section 203(n) for shares in cooperative housing;
and Section 234(c) for units in condominiums. Growing Equity Mortgages must meet the requirements of the section
under which they are insured but certain exceptions are available.
Each of the five FHA Growing Equity Mortgage plans provides for monthly payments to be increased by a fixed
percentage during each year of the loan. The initial year's payments to principal and interest are based on a
30 year level payment schedule. Thereafter the amount of the monthly payments for the next 12 months will increase
each year by between 1 and 5 percent depending on the plan selected. The actual term of the mortgage will
not exceed 22 years and may be less depending on the specific Growing Equity Mortgage plan and interest rate
selected.
FHA Growing Equity Mortgage Eligibility
FHA GEMs are available to anyone who anticipates their earnings to increase appreciably and intends to use the mortgaged
property as their primary residence.
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to Buying a Home with an FHA Loan
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> 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.
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Receive cash back and save money when you buy or sell your home.
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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.
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