Derek Egeberg is the Approval Coach!

Yuma Mortgage & Yuma Home Loan Specialist • NMLS# 180899

FHA Loans 


What is an FHA-Insured Loan?

FHA-Insured Loans offer many benefits and a level of security that you won’t find in other loans. While these loans are funded by Academy Mortgage, the Federal Housing Administration (FHA) insures these mortgages so Academy can offer you a better deal. With flexible qualification guidelines, these loans are particularly designed to benefit first-time homebuyers and buyers who don’t have perfect credit or a lot of money to put down.

A few common FHA-Insured Loans are:

FHA 203(b) Home Mortgage Loans for qualified buyers wanting to purchase or refinance a primary residence.

FHA 203(k) Renovation Loans for those wanting to buy a home, fix it up, and include all the costs in one loan, or those wanting to refinance what they owe on their mortgage and add the costs to remodel or repair their existing home.

FHA Energy-Efficient Mortgages for those wanting to make their home more energy-efficient.

What are the benefits of an FHA-Insured Loan?

FHA-Insured Loans offer the following features:

  • Low down payments (as low as 3.5% of the purchase price).
  • Fixed-Rate and Adjustable-Rate Mortgages available.
  • 100% gift funds acceptable for down payment and closing costs.
  • No prepayment penalty.
  • Flexible qualification guidelines.

Who may benefit from an FHA-Insured Loan?

FHA-Insured Loans may be of particular benefit to buyers who:

  • Are buying their first home.
  • Don’t have a lot of money to put down.
  • Don’t have perfect credit and are worried about qualifying for a loan.
  • Want to keep their monthly payments as low as possible and/or are concerned about their monthly payments going up.
  • Want to refinance a high-cost mortgage.
  • Are looking to finance one- to four-unit structures or approved condominiums.

Things to remember about FHA loans:

  1. Any past bankruptcy must be at least 2 years old and the applicant must have had good credit for at least 2 consecutive years following the bankruptcy.
  2. Any history of foreclosure must be at least 3 years old and followed by at least 3 consecutive years of good credit.
  3. You must have had a stable income for at least 3 years and proof that you have paid all your bills.
  4. You must be able to make a 3.5% down payment, which is considerably lower than conventional loans.
  5. Typically closing costs and prepaid items are approximately 3% of the purchase price.
  6. Monthly payments must be roughly 31% of your gross income.
  7. You can assume a FHA loan from a seller or pass it on to a buyer.
  8. Any cost associated with the title, including the title search and title insurance for the home.

There are also eligibility requirements for the home. Properties that are eligible for a FHA loan include: single-family homes, 2-4 unit properties, condominiums, double-wide manufactured homes and modular homes. Ineligible homes include (but are not limited to) co-ops, boarding houses, commercial properties, hotels, and private clubs. A home is also ineligible if the seller acquired the house within the past 90 days. For any property over 10 acres, the loan will be based on the price of the house and the first 10 acres only. Additionally, the property must be used as a primary place of residence.

One type of FHA loan that has a couple of other specific guidelines is the 203(k) loan, which is used for buying and remodeling a home. The home must be at least 1-year-old and the rehabilitation of the property must cost less than $5,000.

For more information, call (928) 247-9089 Today! Or, Click Here to send us an email.

Take the next step Get connected with a FHA Loan Specialist who can help you maximize your FHA Loan benefits and let you know what you qualify for. There are no obligations and your credit will not be pulled.

FHA Anti-Flip Rule Suspended For One Year

Jul. 8th, 2011
FHA/HUD has once again given a one year extension to this little know program.

More homes will become available for first time buyers in Arizona with the 90-day anti-flip rule being suspended for one year.

Previously FHA has not allowed any property to be sold for even a dollar more than the original price plus the cost of the improvements until at least 90 days of ownership.  That additional holding time had deterred many investors from the market.

With the rule suspended, many more investors will be rehabilitating properties and as such more inventory or choices should become available for buyers especially in the First Time Buyer segment. Teachers, government employees and local medical professionals will certainly benefit by combining this rule change with some of the local and state programs that are available.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:

  • All transactions must be arms-length and there can be no identity of interest between the buyer and seller.
  • If the sales price of the property is 20 percent or more above the seller's acquisition cost, the lender must meet specific conditions for the waiver to apply.

You can read the full text of the waiver on HUD.gov.

 

For more information

Contact your Loan Officer today to see if an FHA-Insured Loan is the right solution for you. We take pride in delivering value and savings to homebuyers across the United States. It would be a pleasure to help.

Click Here to Read Our FHA Loans Article Posts