Yes, You May Qualify for an FHA Loan!
Buying a home with an FHA loan
- Your down payment can be as low as 3.5%
of the price of the home.
- FHA also allows seller
concessions up to 6% of your home purchase price.
- Need a lower payment? Ask a mortgage
banker about FHA Rate Break - a 1-year 1% reduction
in your interest rate! Instead of taking an ARM, choose FHA
Rate Break and enjoy a low payment AND a fixed rate.
Through December 31, 2008 Congress has also
raised the loan limit on FHA loans across the country! For
example, in San Francisco, the FHA loan limit went from $362,790
to $729,750. Higher loan limits mean lower rates for more
people! Get in touch with us today: fill out the form on the
right or call (620) 241-3400 to find out the current FHA loan
limit in your county. Don't wait until it's too late!
Things to know before refinancing:
| 1) About the
FHA Loan program |
Your FHA home loan is insured by
HUD, a government agency. When you are considering
refinancing, you have already done the hard part by
getting the loan the first time. The FHA streamline
refinance is a much easier process. As long as you have
an existing FHA loan, and you have been making your
mortgage payments on time, you should qualify for the
streamline process. If you do NOT have an FHA loan, you
can explore the options of a non-FHA streamline
refinance. |
| 2) Things you
do not need |
Much of the difficulty in obtaining a loan of any sort
is the paperwork that you have to collect. With an FHA
Streamline Refinance, you are easily qualified if you
have been making your payments on time and there is NO
need for an appraisal unless you want to wrap the cost
of closing into the loan. In most cases your credit will
not be checked for an FHA Streamline Refinance.
In addition, there is NO income verification, NO asset
verification, and you usually do not need any cash for
closing! |
| 3) Things you
will need |
When you apply for your FHA Streamline Refinance
loan, you'll need a few things to make the process go
smoothly. You'll need your note from your existing loan,
your home insurance information, an evidence of your
Social Security number. To complete the FHA
Streamline Refinance loan, you'll need to complete
page one of your loan application, and you'll need your
current coupon or payment book for your home. |
| 4) Requirements |
Although the FHA Streamline Refinance loan is
very easy, there are some requirements. The lender will
look to see if you have been making your current
mortgage payments on time. They will also look to see if
you have already paid 6 months or more on the current
loan. One of the requirements of an FHA Streamline
Refinance is that you occupy the home that you wish to
refinance with the FHA Streamline Refinance. If you do
NOT occupy the property, the refinance will be more
difficult. |
Fixed rate loans have
a stated interest rate that does not
change over the life of the loan,
whereas the rates on adjustable rate
loans are linked to an index and change
as the index rate changes. Many
mortgages, such as a 5-Year Fixed (30
Year), start as a fixed rate loan and
then convert to an adjustable rate.
Adjustable rate loans have more risk due
to the possibility that the interest
rate could increase. However, because
you are assuming some of the risk the
lender will generally reward you with a
lower interest rate. These loans are
best for borrowers who do not plan on
keeping the loan for the full term.
Eligibility for VA Loans
Every year more and more people are gaining eligibility for VA
home loans and benefits. It is estimated that there are
currently 30 million retired/active military personnel who are
entitled to receive special benefits, such as veteran home loans
(VA home loans), because of their military service.
Unfortunately, there are very few companies that make it their
goal to ensure that these benefits are not only explained
correctly, but that these benefits are also fully utilized. Here
is a list of the most current VA entitlement requirements:
DD214 – Is it Required?
For most veteran home loan
applications, a DD214 certificate is required to qualify. With
Low VARates.com, however, you can still be eligible for a VA
home loan even if you have lost or misplaced your DD214. Low VA
Rates is dedicated to helping veterans understand the
requirements for eligibility for VA loans and making it easier
to qualify for a VA home loan. Call us for more information on a VA loan.
USDA Guaranteed Rural
Housing Loan/100 % No Money Down – These
loans are perfect for 1st time home buyers.
There is no down payment required and seller
concessions up to 6% of the purchase price
is allowed. This loan is for borrowers
purchasing a home they will personally
occupy and this 30 year fixed rate mortgage
is offered to families whose income does not
exceed 115 % of the median income for rural
areas and communities. There is no loan
limit as long as the borrowers meet income
ratios. There is a 3.5% up front Funding Fee,
but this loan does not require a monthly
mortgage insurance premium.
| Borrower
Profile |
• Rural borrowers who have the
income and credit history, but
not the down payment required
to qualify for a conventional
mortgage |
| Key Features |
• Maximum LTV of 103.5% when
financing allowed closing costs
• Purchase and no cash-out
refinances as permitted by RHS
• Non-Loan Prospector®
• Mortgage Insurance is not
required based on government
guarantee |
| Borrower Benefits |
• Down payment and borrower
reserves not required
• Certain closing costs, including the
3.5% guarantee fee, to be included
in the loan amount under certain circumstances
• Borrowers can receive various
options for funding, subject to GRH
Section 502 Program restrictions
• Additional flexibility with no cash out
refinancing as permitted under
the GRH Section 502 Program |
If there is a loan
that you are inquiring about, please
call us or
click here
to send us an email so we can assist you.
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