Answers to frequently asked FHA mortgage loan related questions

An FHA mortgage loan can offer many great opportunities to current and future homeowners. For homeowners seeking to refinance, FHA mortgage loans allow you to do so up to 97% of the homes appraised value. Many homeowners also benefit from FHA mortgage loans because of the low fixed rates they offer. FHA's low fixed rates have greatly assisted homeowners who are struggling with increasing adjustable mortgage loan payments. Closing costs are generally lower than those of conventional mortgage loans and the loan process is generally faster, requiring less paperwork than a conventional loan.
For those interested in buying a home with an FHA insured mortgage, prospective home buyers will only be required to put a down payment of 3% of the sales price of the home. The down payment can be a gift and the closing costs (which are usually lower than those of conventional mortgages) can even be financed in the mortgage loan. Purchasing a home that needs repairs can be done with ease as you can borrow the money that you need to do the repairs to the home in the same mortgage at the same low fixed rate.

FHA Secure is an FHA home loan program that helps homeowners with adjustable rate mortgages, who had a history of on-time mortgage payments but missed payments when their rate reset, refinance to a low fixed rate. The FHA is on target to insure more than a quarter of a million FHA Secure home loans in the Year 2008!

FHA may allow you to do a "streamline refinance" if you currently have an FHA insured mortgage loan. The amount of documentation and underwriting that needs to be performed by the lender can be greatly reduced by doing a streamline refinance but does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance:

• The mortgage loan being streamlined must already be an FHA mortgage
• The loan should be current
• The refinance is resulting in lower monthly payments
• No cash out may be issued in a streamline refinance

If you want to modernize your home or make some home improvements, a home improvement loan may be available to you. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get just one mortgage loan which includes the mortgage and the cost of repairs combined. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but you still have only one mortgage payment, and you can complete the repairs after buying the home. This loan works for refinancing as well.
Apply for an FHA Refinance and ask the loan specialist that contacts you if this type of loan can benefit you.
Or you can Apply for an FHA Purchase/Rehab Loan here if you are looking to purchase a home that may need work.

The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family, multifamily, manufactured homes and hospitals. It is the largest insurer of mortgages in the world; insuring over 34 million properties since its inception in 1934.

FHA operates entirely from self-generated income and costs the taxpayers nothing. The proceeds from the mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely. FHA provides a huge economic stimulation to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue.

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