With the U.S. government back up and running again, it’s a good time to consider some of the government-sponsored mortgage programs available to borrowers that may benefit your particular situation.
A Federal Housing Administration (FHA) purchase loan
requires only a 3.5% down payment of the purchase price for a new home, lower
than what is typically required for a conventional loan. Lower interest
rates are also offered to borrowers choosing an FHA loan, and lower credit
scores can be accepted for loan approval.
If you have an FHA loan now, an FHA Streamline refinance can
be used to lower your interest rate without the need to requalify with
documented income or assets. The FHA Streamline refinance does not
require a new appraisal and is possible even if you’ve lost equity in your home
and may owe more than your home is worth.
The FHA program works with a government agency backing your
mortgage in case of default, providing more assurance to the lender that your
mortgage will be a safe bet. In exchange for getting a lower rate and minimum
down payment, an upfront mortgage insurance premium (UFMIP) is financed into
your loan amount, and a monthly mortgage insurance premium (MIP) is added to
your monthly payment.
To get more information about FHA loans, visit the Department of Housing and Urban Development’s website here: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory.
As always, if you have questions or want to know if this
loan option makes sense for you, please contact one of our loan advisors
toll-free at 1-877-939-0339.
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