FHA offers loan options
By Keith Woeste
Milestone Mortgage
FHA is the way.
With all the talk of tightning credit markets and tougher
mortgage guidelines, who is making the mortgage market move? FHA.
So what is the FHA and how does it work?
FHA offers loan options
By Keith Woeste
Milestone Mortgage
FHA is the way.
With all the talk of tightning credit markets and tougher mortgage guidelines, who is making the mortgage market move? FHA. So what is the FHA and how does it work?
The Federal Housing Administration, generally known as FHA, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States. FHA insures mortgages on single-family and multifamily homes including manufactured homes. FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner’s default. Loans must meet certain requirements established by FHA to qualify for insurance.
More than 50 percent of all mortgages are FHA mortgages. There are multiple reasons for this, including the ones listed below:
– Higher loan limits, up to $625,500, depending on county
– Up to 96.5 percent loan-to-value on purchases and refinances. 85 percent cash out
– Approved down payment assistance with up to 100 percent financing depending on income
– Down payment and closing costs can be gifted
– 6 percent seller contribution toward closing costs
– Mininum credit score 580
– Higher debt-to-income ratios
– Competitive interest rates
– No prepayment penalty
– Low mortgage insurance payments
In the more than 60 years since the FHA was created, much has changed and Americans are now arguably the best housed people in the world. Housing and Urban Development has helped greatly with that success.
I have multiple FHA lenders to choose from, so please contact me if you have any questions or comments.
Keith Woeste works at Milestone Mortgage. He can be reached at 801-8667 or by e-mail at [email protected].
