FHA Mortgage Rates & Information
FHA loans can be a good financing choice for borrowers who need flexible qualifying guidelines, low down payment programs, and low FHA mortgage rates for buying a home or refinancing.
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If
you happen to have an existing FHA home loan, you may have the opportunity
to reduce the monthly loan payment using an FHA
streamline refinance, which requires no income verification.
Benefits of an FHA Home Loan:
- Cash out FHA loans have high limits, up to 85% loan to value
- The minimum down payment for buying a home is 3.5%
- Higher FHA loan limits are based on the location of the
property
- Flexible underwriting provides for credit
scores as low as 620
- A higher debt ratio is allowed in comparison to
conventional loans
- FHA rates are comparable to conventional home loans
- Non-occupant co-borrower may be added to help qualify
- Certain closing costs have limitations which are set by
FHA
- A previous bankruptcy only needs to be discharged for 2
years
- Collection accounts may not have to paid to close a loan
- FHA loans may not have a requirement for any cash reserves
FHA rates are available in fixed 15 year or 30 year terms. With
every FHA loan, there is a mortgage insurance premium of
1.75%,
which can be financed.
There is also a monthly insurance premium that is added onto the
payment. Condominiums do not require the up-front premium, only the
monthly amount. For information onnon-approved condo projects, see FHA
spot loans.
The debt ratio is 43% of gross income, for all debts, unless there
are good compensating factors to offset, such as: Documented ability to pay more than the proposed loan payment;
demonstrated ability to accumulate savings; minimal increase in housing expense; potential
for increased earnings; substantial non-taxable income; good credit history.
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