FHA Loan Programs

Federal Housing Administration Loan Program

FHA loans have been around since the 1930’s.  They were designed to improve housing standards and provide home financing to Americans to become home owners.

FHA credit standards allow for the down payment of 3.5% to come from a gift from a family member. Seller paid contributions towards the home owner’s closing costs can be up to 6%. FHA insures the loan so the bank holds less risk and is more comfortable lending you the money.

Some other great benefits to an FHA loan.

FHA Streamline Refinance- If you take the loan out today and next year rates drop you can still take advantage of those lower rates without the headache of a typically refinance.  You will not need a new appraisal, the costs are less and the process is easier overall so long as there is a net tangible benefit for going through the streamline refinance.

FHA 203K Rehabilitation loan- If you find a house that you love but it needs improvements don’t worry, FHA has a program for that.  The bank will not only lend you the money to purchase the home but they will also lend you the money to make improvements to the home!  You can make most any improvement you like.  New carpets, appliances, kitchen and bathroom remodels even full on additions to the home!  The great part is that they lend you the money based on the value of the home after these improvements are made.  With the help of the real estate agent and appraiser they insure that you are not going to over improve for the neighborhood.  You can also do energy improvements to the home such as energy efficient windows and doors, additional insulation, solar hot water systems etc.  You can even roll in a few months of initial mortgage payments so you can have the money to stay living where you are until after these improvements are complete.