FHA Refinancing and FHA Home Loans
- posted 10.7.2015
- Nicole Johnson
- Home Loans
FHA Home Loans are federal government insured mortgages that allow lenders the opportunity to offer home financing to those who traditionally struggle to secure home financing. The FHA loan programs have less stringent qualifications, offering great options for homeowners and home buyers, whether you need a new home loan, or are refinancing your current mortgage.
FHA Home Loan: Purchase a Home without a Huge Down Payment
Government insured FHA Home Loans are a popular loan for first time home buyers because you do not need a large down payment to secure a first time mortgage. Typically, buyers may put down as little as 3.5 percent.
Other benefits to an FHA Home Loan include:
- Easier credit qualifying
- Low closing costs
- Less stringent debt ratios and job requirements
- Gifts allowed towards the home down payment
For more information about buying a home with an FHA Home Loan, contact a mortgage specialist.
FHA Streamline Refinance Loan
A mortgage expert may help you refinance your home with an FHA loan, even if you have less than perfect credit. FHA Streamline Refinance Loans traditionally require less documentation than a traditional loan, and do not require an appraisal. Many homeowners who have difficulty paying their mortgage move from a conventional mortgage to an FHA Streamline Refinance Loan, which may lower their interest rate and monthly payments.
Other uses for an FHA Streamline Refinance Loan include:
- Improving or upgrading your home
- Avoiding foreclosure
- Borrowing cash from your home's equity
FHA Fixed Rate Mortgages
- FHA 30 Year Fixed Rate Loan: A fixed rate loan, with low interest rates and monthly payments, that generally requires a small down payment. This loan may be obtained by buyers with low credit scores.
- FHA 15 Year Fixed Rate Loan: Similar to the 30 Year Fixed Rate Loan, it offers the benefits of a stable monthly mortgage payment, except that the interest you pay over the life of the loan is significantly less because the loan is expected to be paid in half the time.
- FHA 203k 30 Year Fixed Rate Loan: The 203k loan program allows borrowers special financing to buy a fixer-upper with enough extra money to complete necessary renovations.
FHA Adjustable Rate Mortgages
- FHA 5/1 Adjustable Rate Mortgage: The initial interest rate is valid for the first five years; after that, your rate is determined by market values. This loan is good for buyers who plan to own the home for a short time because introductory interest rates are typically very low.
FHA Streamline Refinance Loans
- FHA Streamline 30 Year Fixed Rate Refinance Loan: Designed to either lower your payment by lowering your current interest rate, or to convert an FHA Adjustable Rate Mortgage into a fixed rate mortgage. The FHA Streamline refinance loans require less documentation than a traditional loan, and there is no appraisal required. Generally, this loan is easy to apply for and may not require qualifying debt ratios or income verification.
- FHA 203k Streamline 30 Year Fixed Rate Refinance Loan: The FHA 203k allows borrowers to pull out up to $35,000 in equity to pay for home improvements or renovations.
- FHA Streamline 5/1 Adjustable Rate Refinance Mortgage: The FHA 5/1 ARM establishes low initial interest rate for the first five years; after that, your interest rates will fluctuate depending on market interest rates. Adjustable Rate Mortgages typically have the lowest rates and may be useful if you plan on selling your home in the near future.
Contact a licensed loan expert to find out how you can achieve your financial goals with an FHA Home Loan.