Testimonial
“With the mortgage market a mess, we felt safe knowing that the government was behind our FHA Home Loan. Having a fixed interest rate and a fixed mortgage payment each month gave us the safety we both wanted in purchasing our new home. We are glad we choose FHA Home Loan to help us realize our dreams.”
Read more testimonialsWelcome to our FAQs section
This page has a list of common frequently asked questions and our answers to them. If there is something that you'd like to see answered on here, please ask us.
What if I have poor credit?
Poor credit is a very misleading term. FHA Home Loan has worked with many people who described themselves as having poor credit. Typically if you have a 580 Fico score or better and can prove your income, you should have no problem obtaining a FHA Loan. Often times FHA Home Loan can provide 97% financing for borrowers with below 580 Credit as long as the borrower has compensating factors. Contact your FHA Loan specialist to see if you qualify.
What is an FHA loan?
An FHA loan is a real estate mortgage that is backed by the government. The mortgage is insured by FHA, which allows banks and lenders to work with borrowers even if they have had credit issues in the past and who may not have the standard down payment of 20%. By providing 97% financing, FHA Loans help borrowers obtain home ownership when otherwise they couldn’t.
Can I obtain a FHA Mortgage even if I've filed bankruptcy?
Yes. You can obtain an FHA Loan even if you have filed bankruptcy in the past as long as it has been discharged for 2-years
Which houses/properties qualify for a FHA Loan?
Single family houses, duplexes, triplexes, 1-4 unit primary residences, Planned Urban Developments (PUDs), approved condominiums, double-wide manufactured homes, and modular or pre-cut housing are all eligible for a FHA Home Loan.
Isn't it harder for houses to qualify for an FHA Mortgage than a traditional mortgage?
As of January of 2006, FHA has eliminated most of the barriers to a property qualifying. Generally, if a home is in good enough condition to qualify for a traditional mortgage, it will also qualify for an FHA Mortgage with a smaller down payment required.
Do I have to use a licensed FHA Lender?
Yes. Only a licensed FHA Lender can help you qualify for a FHA Mortgage. A FHA Home Loan is a specialized mortgage instrument so its important that you work with a licensed mortgage professional who is trained and experienced with FHA Loans.
How much can I borrow with my FHA Loan?
Typically you can borrow 97% of the purchase price of your home or 95% when refinancing. However when you work with a licensed FHA Home Loan specialist, often times you can obtain a 3% contribution to your purchase and only need a minimum of $500 to purchase your home. To find out if you qualify, contact your FHA Loan expert and they can help walk you through the process.
How long does the FHA Home Loan process take?
During the initial phone call, our FHA Loan specialist will spend as long as you need to have all of your questions answered to your satisfaction. Once you've found a home, you can complete an application in as little as 20 minutes. It takes an average of 30 days from the day your application is submitted to close your mortgage, however it is possible to close a FHA Home Loan in 15-days or less if you have a complete file.
Where can I obtain a FHA mortgage?
FHA Home Loan makes it easy to get an FHA Mortgage in your community. You won't have to visit an office or meet with a banker who is unlikely to help you. Once you talk with one of our FHA Home Loan specialists by phone, you can complete the rest of the process simply and easily and be on your way to home ownership.
Why is a FHA Home Loan a safe decision for me and my family?
Now an agency within HUD, the Federal Housing Administration was established in 1934 to advance opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA gives them the security they need to lend to first-time buyers who might not be able to qualify for conventional loans. The FHA has helped more than 26 million Americans buy a home and is available to each and every citizen and not only first time home buyers.
Can only first time home buyers use a FHA Loan?
No. FHA Home Loans are available to all borrowers in all states. In addition, FHA Home Loans allow for streamline refinancing which can help you lower your interest rate down the road and avoid closing costs.
Can I streamline refinance my FHA loan at any time?
Yes you can streamline your FHA Loan at any time as long as you are lowering your monthly payments or converting to a fixed rate.
How much will it cost to do a streamline refinance on my FHA Home Loan?
Typically there are no closing costs when doing a FHA streamline refinance. With an FHA Streamline Refinance, you are easily qualified if you have been making your payments on time and there is NO need for an appraisal. In most cases your credit will not be checked for an FHA Streamline Refinance. In addition, there is NO income verification, NO asset verification, and you usually do not need any cash for closing!
Can I have a co-signer that is not living in the property for my FHA Home Loan?
Yes, you may have a co-signer that is not living in the home help you qualify for a mortgage. Also a parent or relative can help you with your down payment which helps in qualifying.
Can I receive a gift for my down payment when obtaining a FHA Loan?
Yes. A family member or relative can assist you with your down payment and you are only required to show $500 entering the transaction.
Can I get an FHA Mortgage?
Many more people qualify for FHA Home Loans and Mortgages than compared to traditional mortgages. It’s critical that you speak with a licensed FHA Loan specialist to find out if you qualify.
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