FHA Loan

FHA loan programs reflect the Federal Government's commitment to expanding homeownership through the FHA loan program with reduced down payment requirements, mortgage insurance charges, and relaxed underwriting standards when compared to conventional loans. FHA loan programs are flexible. FHA loan programs are secure.

FHA loan programs recognize many areas as a high housing cost area and has increased the maximum FHA loan amounts. Nationally, the FHA loan limits are as follows:

FHA loan high cost areas:

One Family $362,790
Two Family $464,449
Three Family $561,411
Four Family $675,000

FHA loan programs are an outstanding choice for first time homebuyers because an FHA loan requires only 3% cash (which may be a gift) and is significantly more forgiving of past credit issues. FHA loan programs look specifically at the last two years of your credit history. If there are some credit problems, we may be able to overcome them with sufficient explanations and supporting documents. Never rule yourself out of qualifying for an FHA loan because of credit, prequalify and have me review your credit. I have more information on FHA Loan credit requirements available

This page is focused on the using an FHA loan to purchase a home. If your interest is in refinancing an existing FHA loan please go to my FHA Loan refinance center.

There are some credit issues that must allow for time to pass before you can qualify.

Two years from the date of discharge for a bankruptcy
Three years from the date of foreclosure

They require any outstanding collection accounts, judgments, charge off's be paid before closing. If you have had credit difficulties in the past, FHA loan compensating factors can often get your loan approved.

ADVANTAGES OF FHA Loans

They are assumable
With their no cost streamlined refinancing you can lower your payment at NO COST to you. Usually, closings can occur within 2-3 weeks.
The ARM has the best features on the market with a 1% annual interest rate cap and a 5% lifetime cap.
Lower required down payment
Higher qualifying ratios of 29% for housing and 41% for total indebtedness
More flexible underwriting standards
Gift funds for down payment and closing costs are allowed
Up-front Mortgage Insurance Premium can be financed
Less cash out of pocket required
The lowest down payment (as low as 3%, never more than 5%) requirement of any non-subsidized financing program
Non-occupant co-borrowers are allowed for qualifying purposes
Seller allowed to pay prepaid expenses
Seller can contribute up to 6% of purchase price toward closing cost and discount points

Streamline Refinance

They have permitted streamline refinances on insured mortgages since the early 1980's. The basic requirements of a streamline refinance are:

The mortgage to be refinanced must be insured.
The mortgage to be refinanced should be current
The refinance must lower the borrower's monthly payments.
No cash may be taken out on mortgages refinanced using the streamline process.

For more information go to the FHA Loan Streamline Refinance page.