FHA loans

FHA loans are insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans. Please note in August 2008 the up front mortgage insurance (UPMIP) charged by FHA has changed from a simple 1.5% to a risk based model. What does this mean? It means if you have high credit scores your UFMIP may have gone down, or if you have low scores the reverse may have happened. This change also affects the MMI (monthly mortgage insurance) as well. You should speak with your loan officer to determine how this affects you.

Some of the other benefits of FHA financing:

• Only a 3.5% percent down payment is required.
• Closing costs can be financed.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancelation of the premium.
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage). 

  FHA Loan Limits FHA Loans © ML

• Loans are assumable to qualified buyers.

Other FHA programs:

• FHA Secure operating under raised FHA loan limits[up to $729,200 in some counties] allows distressed homeowners to refinance, even if they have little or negative equity, damaged credit, or missed mortgage payments.
• FHA Streamline allows homeowners with a current FHA mortgage to reduce their interest rate or change loan programs, but does not require an appraisal or income documentation.
• FHA 203(k) Rehabilitation Loans finance repairs to damaged properties which would be otherwise ineligible for a FHA loan. Refinances are allowed; but if a 203(k) is used to purchase a home it finances both acquisition cost and repairs in the same loan.
• Energy Efficient Mortgage provides funding of up to roughly $8,000 for energy related repairs such as air conditioning, water heater wraps and dual pane windows.
• Good Neighbors Program is a way you can buy a HUD home with $100 down. Teachers, Police, EMT's and other service workers are eligible for special terms.
• FHA Reverse Mortgages or HECM allow seniors to easily and safely access the equity in their homes.

Sunrise Vista Mortgage has been an FHA approved lender since 1989 and would be pleased to offer our expertise to your next real estate transaction.

This extended contact form will allow your loan officer to better serve your needs! 

Loan Amount Home Value     Loan Program Requested     30 Year Fixed 15 Year Fixed 40 Year Fixed 25 Year Fixed 20 Year Fixed 10 Year Fixed 10 Year ARM 7 Year ARM 5 Year ARM 3 Year ARM 2 Year ARM 30 Year Fixed Interest Only 10 Year ARM Interest Only 7 Year ARM Interest Only 5 Year ARM Interest Only 3 Year ARM Interest Only Unsure-Need Advice First Name Last Name     Property Type     Single Family-Detached Townhouse Condo Duplex Triplex Quadplex 5+ Units Commercial Manufactured Home - Currently Unavailable Lot-Land Loan - Currently Unavailable Email     Zip code     Occupancy Type Work Phone Home Phone     Primary Residence Second Home Investment Property     Your Credit Rating First time homebuyer?     Credit Rating Over the Top - Over 740 Very Good - 720 to 739 Good - 700 to 719 Reasonable - 680 to 699 Fair - 660 to 679 Needs Some Work - 620 - 659 Needs Much Work - Below 620   Monthly Salary(household) $