Government loan programs
Did you know that not all mortgage companies can offer FHA loans?
New FHA Loan Limits up to $729,750
An FHA loan is 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. FHA has an up-front MIP that is financed into the loan amount. Available to all buyers and home owners, FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for conventional loans, or those who want the advantages the FHA loan affords compaired to other conventional loan programs.
FHA loan programs are particularly beneficial to those buyers with less available cash for down payment, or who need more flexible underwriting criteria.
Some of the other benefits of FHA HOME PURCHASE financing:
Only a 3 1/2 percent down payment is required. Closing costs can be financed. lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation 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). Loans are assumable to qualified buyers. The rates on FHA loans are generally market rates. Depending on the borrower's credit scores, the interest rate on an FHA loan will be lower than on conventional loans. Also the MIP in many cases will be lower than mortgage insurance on conventional loans. Down payment requirements are lower than for conventional loans.
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