How You Can Use an FHA Home Loan
January 31, 2024
There are many uses for FHA home loans, and some borrowers don’t realize there are separate types of mortgage loans for various uses. FHA mortgages and related loan products aren’t just for buying suburban houses. You might be surprised at what you can do with an FHA loan from a participating lender.
FHA Loans for First-Time Home Buyers and Return Buyers
The FHA doesn’t offer special perks just for being new to the home loan market, but these loans do offer lower down payment and closing cost options in typical cases for those who qualify. Similarly, the FHA loan program does not reject a borrower who has owned property before.
FHA Loans Are for Purchases AND Refinances
You can refinance a non-FHA loan into an FHA mortgage. This is an especially tempting option for those in conventional adjustable rate mortgages who want to refinance into a fixed-rate home loan.
FHA Loans Are for Seniors
If you are 62 or older, you may qualify for an FHA reverse mortgage, also known as an FHA home equity conversion mortgage. These loans have no monthly payment are due when the borrower dies, sells the home, or stops using it as their primary residence. They provide a potential source of income for those who qualify, based on the appraised value of the property.
FHA Loans Are for Multi-Unit Properties
Yes, you can use an FHA mortgage to buy a single-unit home, but you can also consider houses with as many as four living units. This is at the same low downpayment requirement (3.5% of the home’s value) as for a single-unit home.
FHA Loans Are for Construction
Did you know there’s an FHA construction loan that lets you build a house on your own lot from the ground up?
The FHA One-Time Close construction loan lets you get a single mortgage to cover the construction and the home loan with no penalty for early payoff and the ability to refinance later using an FHA streamline loan.
Refinance with an FHA streamline is meant to provide a specific benefit for the borrower, such as a lower payment or interest rate, depending on the circumstances. In 2024, the FHA streamline refinance option will become more viable as housing market recovery signs continue.
Talk to a participating lender about your FHA loan options in 2024, you may be surprised at the number of options you have.
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FHA Loans for First-Time Home Buyers and Return Buyers
The FHA doesn’t offer special perks just for being new to the home loan market, but these loans do offer lower down payment and closing cost options in typical cases for those who qualify. Similarly, the FHA loan program does not reject a borrower who has owned property before.
FHA Loans Are for Purchases AND Refinances
You can refinance a non-FHA loan into an FHA mortgage. This is an especially tempting option for those in conventional adjustable rate mortgages who want to refinance into a fixed-rate home loan.
FHA Loans Are for Seniors
If you are 62 or older, you may qualify for an FHA reverse mortgage, also known as an FHA home equity conversion mortgage. These loans have no monthly payment are due when the borrower dies, sells the home, or stops using it as their primary residence. They provide a potential source of income for those who qualify, based on the appraised value of the property.
FHA Loans Are for Multi-Unit Properties
Yes, you can use an FHA mortgage to buy a single-unit home, but you can also consider houses with as many as four living units. This is at the same low downpayment requirement (3.5% of the home’s value) as for a single-unit home.
FHA Loans Are for Construction
Did you know there’s an FHA construction loan that lets you build a house on your own lot from the ground up?
The FHA One-Time Close construction loan lets you get a single mortgage to cover the construction and the home loan with no penalty for early payoff and the ability to refinance later using an FHA streamline loan.
Refinance with an FHA streamline is meant to provide a specific benefit for the borrower, such as a lower payment or interest rate, depending on the circumstances. In 2024, the FHA streamline refinance option will become more viable as housing market recovery signs continue.
Talk to a participating lender about your FHA loan options in 2024, you may be surprised at the number of options you have.
------------------------------
RELATED VIDEOS:
Disclosures Give Transparency to Borrowers
Understanding the Purpose of Your Mortgage Down Payment
Putting Money Into Your Escrow Account
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