Quantcast

Those considering the purchase of a home should explore their FHA home loan options, but that advice isn’t limited just to the type of home loan available to you--FHA, conventional, USDA, VA, etc. There are FHA home loan options that may change the way you think about buying a home.

FHA Rates Near 50 Year Low!

Now is the time to drop the interest rate on your 30-year mortgage or refinance into a 15-year home loan.

FHA Rates for September 23, 2021
Are You Watching Your Credit Score?

NOTICE: Some FHA mortgage lenders are substantially raising FICO score requirements during the Coronavirus crisis, even though FHA minimums remain unchanged.


- Improving Your Credit Score Has Never Been More Important -

Get started one
Get started two
Get started three
Get started four
FHA.com is a privately owned website, is not a government agency, and does not make loans.

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.

FHA Mortgage Options You Should Know

March 15, 2021

FHA Mortgage Options You Should Know
Those considering the purchase of a home should explore their FHA home loan options, but that advice isn’t limited just to the type of home loan available to you--FHA, conventional, USDA, VA, etc. There are options within the FHA home loan program that may change the way you think about buying a home.

FHA Loan Types

It’s not just a choice between whether you should build a home on your own lot with an FHA One-Time Close construction loan or use an FHA 203(b) loan to buy an existing home. Borrowers also have the option to choose a fixer-upper home and apply for an FHA 203(k) Rehabilitation loan.

You can also choose to purchase an existing home using a “regular” FHA loan (the 203(b) loan is the loan you want in this instance) and apply for extra FHA loan funds to install energy-saving upgrades to the home. This option is called the FHA Energy-Efficient Mortgage option and if you want to consider this add-on to the mortgage, be sure to ask your participating lender about the FHA EEM.

FHA Loan Options

You can choose to make the minimum down payment with an FHA mortgage with a purchase loan or you can choose to make a bigger down payment and cut down the overall costs of the loan through its term. But that’s not an option unique to FHA mortgages, so why mention it?

Because FHA loans, like other government-backed mortgages, are required BY LAW to allow early payoff of the mortgage without penalty. You cannot be charged extra for the privilege of paying off your debt ahead of schedule.

But what about borrowers who want to go the opposite direction--people who need to save more money out of pocket up front on the mortgage? These borrowers not only will not make a bigger down payment, they may need to include certain closing costs into the loan amount. Ask the loan officer about rolling the Up Front Mortgage Insurance Premium (the FHA UFMIP) into the loan amount.

FHA Down Payments & Closing Costs

There is no such thing as a zero-down FHA purchase loan for existing construction, but borrowers do have the option of applying for locally-sourced home loan down payment programs. But there’s another thing you should know in this area--your seller is permitted to contribute up to six percent of the sale price of the home toward your closing costs.

The seller CANNOT contribute to your down payment but the closing cost issue is very helpful for borrowers who need to save more money up front on the loan.

Another issue you should consider is whether or not you are considering keeping the home long-term. If so, you may wish to consider refinancing at some point to get into a lower interest rate or monthly payment. The FHA Streamline Refinance loan is designed to help you do just that and FHA Streamlines are ONLY for FHA mortgages.

No conventional, VA, USDA loans, etc. Only FHA-to-FHA refi transactions are allowed with Streamline loans but these refi options usually require some tangible benefit to the borrower such as a lower rate or mortgage payment.

------------------------------

RELATED VIDEOS:
Learn How to Meet FHA Requirements
A Few Tips About Your Fixed Rate Mortgage
Your Proof of Ownership Is the Property Title

SEE YOUR CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


GET STARTED