Monroe County's FHA Maximum Loan Limit has been increased to:

One-Family	Two-Family	Three-Family	Four-Family
$729,750	$934,200	$1,129,250	$1,403,400

 

FHA Mortgage

Backed by the Department of Housing and Urban Development, this mortgage offers the borrower the ability to put as little as 3% down payment – and they can even finance “allowable” closing costs. Seller can contribute up to 6% of the purchase price to the buyer towards closing costs.

Purchase a Home with an FHA Loan

FHA Mortgages can loan you money anywhere in all fifty states so that you can own a home of your own.

Click here for how large of an FHA Home Loan you can afford

FHA Mortgage Refinancing

Refinancing into an FHA mortgage or refinancing your current FHA mortgage has never been easier. First you have to decide what your goals with the refinancing should accomplish. The most common forms of FHA refinancing are:

Cash-out: You should choose this option if you wanted to walk away from your closing with a check that you can spend as you see fit for use on anything you want.

Debt Consolidation: If you have too much high interest debt and you want to roll everything into one easy monthly payment you would choose this option. Your FHA loan specialists will arrange the payoff of your debt and you will walk away from the closing with a fresh start.

Rate & Term: For those who have a really high interest rate on a subprime mortgage loan - also known as a bad credit mortgage. With a FHA Rate & Term refinance you can decrease your rate and your payment.

Streamline: FHA streamline refinancing is perfect for individuals who purchased a house or condo with an FHA loan and want to reduce their rate and payments. There is no credit check with an FHA streamline refinance the only condition is that you have not made late payment on your current FHA mortgage within the past year.

FHA Mortgage Refinancing

Refinancing into an FHA mortgage or refinancing your current FHA mortgage has never been easier. First you have to decide what your goals with the refinancing should accomplish. The most common forms of FHA refinancing are:

Cash-out: You should choose this option if you wanted to walk away from your closing with a check that you can spend as you see fit for use on anything you want.

Debt Consolidation: If you have too much high interest debt and you want to roll everything into one easy monthly payment you would choose this option. Your FHA loan specialists will arrange the payoff of your debt and you will walk away from the closing with a fresh start.

Rate & Term: For those who have a really high interest rate on a subprime mortgage loan - also known as a bad credit mortgage. With a FHA Rate & Term refinance you can decrease your rate and your payment.

Streamline: FHA streamline refinancing is perfect for individuals who purchased a house or condo with an FHA loan and want to reduce their rate and payments. There is no credit check with an FHA streamline refinance the only condition is that you have not made late payment on your current FHA mortgage within the past year.

The New FHA Secure Refinance Program

On August 31, 2007, President Bush proposed the new FHA Secure Refinance Program. This program is designed to help homeowners into fixed rate mortgages through the FHA to reduce their monthly mortgage payments and to eliminate the chance that their mortgage payments will increase in the future.

In recent years, many borrowers have been put into adjustable rate mortgages (ARM’s), deferred interest mortgages (called “Option ARM’s”), and subprime mortgages with the promise that initial mortgage payments would be low. Unfortunately, many of those mortgages are now adjusting into much higher monthly payments, making it difficult for homeowners to make ends meet. This is why the president is acting now in order to assist homeowners.

If you are in one of these mortgages, the FHA may be able to help you.

Apply Now and you will be able to learn if you qualify to refinance your adjustable rate mortgage into a fixed FHA mortgage with no out of pocket closing costs. This means that with the help of FHA, you may be able to refinance your home into a lower monthly payment and be assured that your monthly principle and interest payments will never increase.

With the number of homeowners in these ARM’s, it is important for you to act quickly, so please, Apply Now so that our FHA Mortgage Specialists can help you, today.

FHA Loans - Fixed Rate FHA Mortgage Programs

Fixed rate loans are FHA's most popular type of loan. These loans are fully amortized over a set term and have no pre-payment penalty.
FHA offers the following terms for the fixed rate real estate mortgage program.

30 year
25 year
20 year
15 year

All FHA loans can be paid off or refinanced at any time. They are assumable but subject to loan qualifying.

Eligible Properties

1-4 unit primary residences, Planned Urban Developments (PUDs), Approved Condos, Double-wide manufactured homes, and Modular or pre-cut housing are all considered to be eligible. Special eligibility requirements for certain properties are listed below.

3-4 Unit Properties

The 3-4 Unit Property must be self-sufficient. The net rental income must be equal to or greater than the monthly mortgage payment. The net rental income is the appraiser's estimate for vacancies or the vacancy factor used by the jurisdictional HOC, whichever is greater.

Borrowers must still qualify for the mortgage based on income, credit, cash to close, and projected rents received from the remaining units.

Borrowers must have reserves equivalent to three months of PITI mortgage payments. These reserves can not be gifted and must be the borrowers own funds.

Double-wide Manufactured

Must have a floor area of not less than 400 square feet.

Be constructed after June 15, 1976, in conformance with the Federal Manufactured Home Construction and Safety Standards, as evidenced by an affixed certification label.

Be classified and taxed as real estate.

The mortgage must cover both the manufactured unit and its site.

It must not have been installed or occupied previously at ant other site or location.

Built and remains on a permanent chassis with all wheels removed.

Affixed to a permanent slab with utility connections.

Rural Properties

Rural properties are FHA eligible however no value can be assigned to any acres above 10. The sales price of the property must rely only on the first 10 acres including the house.

Ineligible Properties

If the re-sale date is 90 days or less following acquisition by the seller, the property is not eligible for an FHA mortgage.

Co-ops are ineligible

Commercial properties, boarding houses, hotels and motels, tourist homes, private clubs, sanitariums, and fraternity or sorority houses are also ineligible.

When considering purchasing Condos or Townhouses these project must have already been approved by the FHA and HUD. There is no exception to this rule and it is advised that you start your search for approved Condo and Townhouse projects here. Searching for Condo projects in your town is very easy and only takes a few seconds. Also keep in mind that when searching for these projects the HUD page will only display approved condo or townhouse projects in that zip code or town, so it is suggested you first make a list of zip codes you would consider living in then search for projects. Search the HUD database for condos.

FHA Loans - Adjustable Rate Mortgage Loan

The FHA adjustable rate mortgage loan (a.k.a. Variable, ARM) is one of the best adjustable rate mortgages available. You may use this FHA loan program for 1-4 unit homes, as well as condominiums, town homes, and PUDs.

FHA does not offer an initial low "teaser" rate like most other adjustable rate mortgages, therefore it will normally start at a slightly higher rate than most other adjustable loans.
FHA adjustable mortgages are designed to protect the home owner from larger payment and interest rates adjustments common with other loans.

The yearly interest can rise or decrease no more than 1% per year vs. 2% for a conventional loan.

The lifetime cap of the FHA adjustable mortgage is no more than 5% over the initial start rate vs. 6% for a conventional loan.

Therefore, a FHA can take 5 years before reaching its maximum rate vs. a conventional loan can cap in only 3 years.
FHA's adjustable rate mortgage is based on the economic indicator index called the 1-Yr. T-Bill.

FHA Cash Out Mortgage

Great when you need a little extra cash for whatever you see fit. Do you need a new car or truck, renovate your property, landscaping, or use your cash out for whatever you see fit. Cash that equity out of your property now!

1-2 unit primary residences may cash-out up to 95% of the estimated property value. For other property type the max cash-out is 85%.

FHA Debt Consolidation

Are debts starting to control your life? Credit card payments keep increasing, that car payment keeps becoming harder and harder to make on time, and you don't see a way out? Try our FHA debt consolidation program! We will cash the equity out of your house up to 95% of the fair market value and our expert FHA Loan Officers will arrange that your selected debts are to be paid off with the proceeds. We make all the arrangements hassle free! Get those credit cards, car or truck, and any other debts paid off now!

When you click apply for this program, do not include the debts to be paid off as current monthly obligations. Doing so might result in a false denial.

FHA Rate & Term Mortgages

Do you currently have a high rate mortgage because of past credit issues? You worked hard to get where you are now and you owe it to your family to save the most money per month for their needs instead of paying high interest rates Apply Now for a Rate & Term FHA mortgage to lower your rate and save up to hundreds a month in interest.

Have an Adjustable Rate Mortgage (ARM) Want the security of a Fixed Rate FHA mortgage instead of guessing where next months payment will be? In this time of uncertainty a stable mortgage payment has become more and more a necessity as the stock markets become more and more volatile. Apply Now

FHA Condominiums

The FHA understands that not everyone could afford the price tags of certain urban and suburban housing. As a result the FHA has opened lending to Condominiums (Condos) and Townhouses. We give everyone an equal chance to become a homeowner no matter what type of property you are interested in apply now and one of our FHA loan specialist will call you to help you to the very best of their abilities.

FHA condo home loans have the same borrower guidelines as more traditional FHA financing however there are certain limitation on which condo projects are FHA approved.

FHA Mortgage Limits

Knowing your local FHA lending limits is an essential step in the process when considering FHA financing. Clicking on the link below will open a separate browser window directly from HUD. Simply enter some basic information about your location and instantly know local lending limits.

Click here to check your local FHA limits

FHA Credit Guidelines

Credit scores must meet certain guidelines for all FHA mortgages except for streamline refinances that do not require any credit check. Generally credit scores must be in the following range:

400-620+

Certain circumstances will allow FHA to be forgiving and may allow credit scores that are lower if certain compensating factors are meet such as large retirement savings, higher then expected income, or more of a down payment.

If your credit score falls within or below the 520 range you owe it to yourself to start rebuilding good credit click here to learn how.

Credit History

Non-Traditional Credit:

Non-Traditional Credit is acceptable if the borrower does not have any prior credit history or if that length of credit history is too short to qualify. We would need at least three letters from any repeated monthly obligation such as rent, utilities, store accounts, cell phone accounts, and/or any other acceptable sources. Make sure to let your Realty Mortgage Loan Officer know about your current credit situation to avoid any mishaps in the processing of your mortgage.

Judgments:

Court ordered judgments must be paid completely, unless the borrower has been making regular and timely payments and the creditor is willing to subordinate that judgment to the new insured mortgage. The borrower must provide a satisfactory written explanation.

Collections:

Handled on a case by case basis.

Bankruptcy:

-Chapter 7 requires a minimum two-year lapse period since discharge date; minimum one-year lapse period may be acceptable if bankruptcy was caused by extenuating circumstances that are not likely to recur the reason can not be debt caused by uneducated choices. Only extenuating circumstances will be considered and only after one year has passed. In all cases the borrower must have re-established credit and must demonstrate the ability to manage financial affairs.

-Chapter 13 is permitted if a one-year payout period has elapsed and performance has been satisfactory. The borrower must receive court approval to enter into the mortgage transaction.

Foreclosures:

Require a minimum of three years since the completion of the action and the borrower must have re-established good credit.

Delinquency or Default on Federal Debt:

If the borrower is presently delinquent on any federal debt or is obligated on any type of federal lien, he or she is not eligible for an FHA loan until the delinquent account is brought current, paid, or otherwise satisfied, or a satisfactory repayment plan is made between the borrower and the federal agency owed and is verified in writing.

Seller Paid Closing Costs

One of the greatest reasons for choosing an FHA loan is because the allowed seller contributions are increased from 3% to a whopping 6%! This is usually more then enough to cover all of your closing costs, and this if course means that you will have more available money to furnish your new home for example.

For example if you are about to place a bid on a house valued at $100,000 as the list price. You might be thinking about making an offer for the property in the amount of $94,000 since it is common practice to bid under the list price. But instead of placing that lower bid you might what to accept the list price as is on condition the seller pay 6% of the value toward your closing costs. So now you have covered all your closing costs and the seller is still getting the same amount of money they thought they would be in the first place.

This method also works if you have good reason to believe the property is valued much higher then the sales price. In the case the seller will not accept any amount below $100,000 and you have very good reason to believe the property is valued at $106,000 or more you may be able to add that 6% to the top of the loan giving you a loan in the amount of $106,000 but keep in mind the sales price must now be increased to $106,000 and now include a seller concession of $6,000 and the end result is the same for the seller and you have saved $6,000!

 

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