At Team Mortgage Mom, 80% of the loans we process are FHA (Federal Housing Administration) loans. Here is a brief Q&A to help you decide if an FHA loan is right for you.
Why should I purchase with an FHA loan?
An FHA loan offers multiple benefits over conventional loans. You can take advantage of a low fixed rate or low margin/index ARM. You can purchase a home with little to no money down. You have the benefit of being likely approved, even if your credit score is less than perfect. In addition, with a lower PMI than conventional loans, now may be a great time to take advantage of the benefits of using an FHA loan.
Why should I refinance on an FHA loan?
FHA loans offer 85% of the home value to consolidate your debt or to take cash out, which is a significantly higher percentage than conventional loans. The FHA program is available to everyone, including those with less than perfect credit, and there are no restrictions on how many times you are eligible for an FHA loan. FHA loans also do not require a higher rate when taking cash out, which makes it the best choice for refinancing.
What is an FHA Streamline Refinance Program?
The Federal Housing Administration has been allowing streamline refinances for federally insured mortgages since the 1980s. As a result, many FHA homeowners have used this program to lower their interest rate at relatively low to no cost. This program has been saving borrowers thousands on their mortgage interest.
Team Mortgage Mom makes it easy for you to refinance. The term “streamline” simply means there is very little documentation and underwriting to be performed by the lender. There’s no appraisal and no income verification required.
Are FHA loans assumable?
Yes they are. You can assume both an existing FHA-insured loan, or if you’re the seller, allow a buyer to assume yours. Assuming a loan with this less expensive and streamlined process can be very beneficial to you compared to a new loan.
The application process consists of little more than a credit check, and no property appraisal is required. As with new loans, you must also demonstrate that you have enough income to support the loan.
Want to find out more about FHA loans? Reach out to Team Mortgage Mom today. We’ll help make your FHA loan as effortless and as hassle-free as possible. Let us help you to save thousands on your own FHA home mortgage.