Can a FHA loan save your Home?

FHA Loans - Federal Housing Administration Generally known as "FHA" the Federal Housing Administration provides mortgage insurance on loans made by "FHA" approved lenders throughout the United States. An FHA loan insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.

The History of FHA... It was created by congress and became a part of the Department of Housing and Urban Development (HUD) Office of Housing in 1965. During the 1940's FHA loan programs helped finance military housing and homes for returning veterans and their families after the war.

In the 1950s, 1960s and 1970s, the FHA helped to produce millions of apartments for elderly, handicapped and low income Americans. When soaring inflation and energy costs wreaked havoc, the FHA's emergency financing kept cash strapped properties afloat.

Since the FHA was created, much has changed and Americans are now arguably the best housed people in the world. HUD has helped greatly with that success.

Why Choose an FHA Loan

There are a lot of good reasons to choose an FHA loan, especially if one or more of the following apply to you:

• You do not have perfect credit
• You're worried about qualifying for a loan
• First-time homebuyer
• You're worried about your monthly payments rising
• Do not have a lot of money for a down payment
• You want to keep your monthly payments as low as possible

If any of these things describe your situation, then an FHA loan may be right for you. Why? FHA-insured loans offer many benefits and protections that you won't find in other loans including:

• Easy Qualification
• Low Cost
• Perfect Credit not necessary
• Low Down Payment
• Protection keeping your Home

FHA insures loans for lenders against defaults. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process. You may use an FHA insured mortgage to purchase or refinance a new or existing 1-4 family home, a condo unit or a mobile home.

FHA Loan Comparison
Conventional loans usually require a larger down payment. If you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates.

The best thing to do is compare the cost of the conventional loan to an FHA loan with a Funding America professional mortgage broker.

What are the fees on each? What is the interest rate(s)? How much is the mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA. Compare the cost of FHA over the life of your loan and how much it costs monthly to subprime and conventional types of loans. With the protection you get with FHA it's a very good deal.

FHA Loan Answers your Questions:
You can use a FHA as many times as you desire. The only guideline is that you cannot have more than one outstanding FHA loan with a loan to value (LTV) of higher than 75%. You can own rental property and purchase your primary residence using FHA financing.

FHA is one of the only types of loan programs that currently does not require a FICO score.

You can use FHA financing for 2,3, or 4 unit home purchase assuming that the loan amount does not exceed the maximum loan limits for where the property is located.

Using a FHA insured first mortgage in combination with other specialized programs, such as CHFA, you may be able to purchase a home with no money out of pocket. Speak with your mortgage broker regarding "other" specialized programs.

You can purchase a home using FHA financing two years after the date of discharge for a bankruptcy, assuming that you have maintained excellent credit since the discharge.

Three years after the final date of foreclosure you may use FHA financing to buy another home, assuming that your credit since the foreclosure has been excellent.

The only way to remove the FHA mortgage insurance is to refinance the loan to a conventional loan once your loan is equal to 80% or less of the current value.

You can qualify for a FHA even with a Federal tax lien, as long as it has been in a repayment schedule for at least (6 months) and all payments have been made on time. The monthly payment will be counted against you as a monthly liability and will affect the amount of the loan you will qualify for. State tax liens must be paid off in full.

You can have a co-signer that is not living in the home help you qualify for a mortgage but their rent, mortgage payment, or monthly bills will be used in qualifying. Also, they cannot currently have a FHA in their name.

FHA Loans and Mortgage Insurance

There is an up front mortgage insurance premium... (PMI) is equal to 1.5% of the loan amount that is paid at settlement. Mortgage Insurance is applied to all FHA loans. In most cases, this mortgage insurance premium is included in your loan amount, so you are really paying it over the life of the loan. In addition, on loans with a term of greater than 15 years and a loan-to-value (LTV) ratio of 90% or greater (meaning you are borrowing more than 90% of the value of the home), you will pay an annual mortgage insurancepremium of approximately 0.5% of the loan amount in monthly installments.

Most loans require mortgage insurance when your down payment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance (PMI) is less than, equal to, or more than FHA insurance will depend upon the loan program and your qualifications.

A mortgage worksheet can be filled out and submitted for review or you can call the branch manager for a complete mortgage application.

The Goal of the FHA

was and still is to get as many people as possible owning their own homes in New York and they do this by establishing lending guidelines that make it easier to get into a home. Before mortgages became standardized they mostly did loans by local banks. Using the local banks caused the guidelines to be very stiff and the down payments very large. There were some mortgage loans that required fifty percent or more down. Of course even now that is a large amount to come up with on any income even in New York.

Back in the days after the great depression FHA loans solidified most Americans could purchase their own home. Now FHA loans do not require a large down payment if any. The main reason for the easiness of a loan of this type is due to the fact that the lender may set guidelines for the loan and guarantee the loan being bought back if it ever went into default. Having less stringent guidelines on a loan makes it easier for the buyer and the lender.

A New York FHA loan isn't that different from the conventional loans that are out there today like the regular adjustable rate mortgage or the fixed rate mortgage. If you are in a loan and your current lender did not advise you that you were eligible for a FHA loan, than you may not know that your current loan may also be available as a New York FHA refinance as well. There are a few restrictions on a New York FHA refinance and the experts at Funding America have over one hundred collective years of New York FHA refinance underwriting experience and have it down to an exact science. Funding America is an unsupervised FHA direct endorsement lender, which gives us the authority to make independent lending decisions in house.

Our authority is given strictly on the principle that we maintain application of the FHA loan lending principles and guidelines, use our decades of collective experience and understanding of the FHA principle and analyze correctly each consumer's individual circumstance. A New York FHA refinance has a few limits imposed by the guidelines with the approval of the FHA refinance being analyzed and granted according to the way in which Funding America believes it should be looked at. Each county in every state has particular loan limits and will be explained in full at loan origination.

For a FHA loan to qualify for a New York FHA refinance the amount of the new FHA loan must be within the loan amount limits and the FHA mortgage loans must be equal to or less than that for each county in each state. These particular FHA loan amount limits apply to both a New York FHA refinance and FHA mortgages used to purchase a home. A New York FHA refinance can be used to refinance any type of loan that a consumer currently has. Funding America is a New York FHA refinance expert and can close these loans quickly and efficiently. We want Funding America to be your lender for life.

For any questions, you can contact us here.

1.347.294.4200