FHA, or Federal Housing Association, assists home seekers with purchasing their dream home. An FHA loan is a great way for family with a modest income to buy a home. While the rules have gotten stricter in recent years, there are still plenty of opportunities out there. Another thing to remember, most people have better credit than they think, usually Fair Credit or better, keep this in mind while filling out our online form. When contacted by us, kindly ask our loan professional any question you may have. They will be more than happy to assist you in finding the best loan, either conventional or FHA, for your particular circumstance. Remember, all loans don't fit all people; if you need a mortgage loan, we'll find the right one for you.
While the FHA does not provide home loans, they do guarantee repayment to the lenders. This gives the lenders confidence that they will not lose money on the deal, and can offer competitive rates on their mortgages. The same applies if you want to pursue an FHA home refinance, according to HUD.gov.
With an FHA loan, you can be spending up to forty-one percent of your pretax income on other debt, like car payments or credit card bills. Conventional loans only allow thirty six percent. If you have a really good credit history, they might stretch it to as much as forty-three percent. You still have to be able to make the mortgage payment though, so you may not want to cut it too close.
If You Are Thinking Of getting An FHA Loan Or Refinance, Here Are Some Things To Know
Next, you have to pay the mortgage insurance up front. That is a standard 1.75%. It can be added to your loan, but it will increase your loan by $1750 dollars on every $100,000 of the purchase price. It does not matter how much your down payment is or anything else. That charge will be there.
Finally, don't forget the insurance premiums. You must carry insurance for as long as you have the FHA loan and own the home. While some private mortgages allow you to drop it after a certain percent of the loan has been repaid, it's not that way with an FHA loan or an FHA refinance, according to FHA.com.
Peak Home Loans can help you on your home refinance. With many new tools available, such as FHA Express, Peak Home Loans knows the way to help you get your dream home or your best, most affordable new payment. We are here to help.
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