The FHA provides many different kinds of loans, not just purchase loans for those who are looking to buy a home. Whether you are trying to buy, refinance, or fix up your home, the FHA has different home loan options that are specifically suited to fit your needs.
FHA loans are not just for the first-time homebuyer. If you have owned in the past, or currently own a home that you are selling prior to purchasing another home, you may be eligible for an FHA loan.
You can receive up to 96.5% financing, meaning the down payment requirement is only 3.5%. Homebuyers are permitted to add the up front mortgage insurance fee to their loan amount and pay it off over the life of the mortgage. Traditional FHA loans can help you purchase single family homes, 2-4 unit properties, and FHA approved condos and townhouses.
For those who currently own a home and are planning on making some improvements, the FHA offers guaranteed loans that work the same as an FHA mortgage. The homeowner must put at least 3.5% down, and the loan is generally extended 10-15% over the estimated amount to ensure there are enough funds to cover any unexpected costs.
Finally, the FHA offers various refinance options for homeowners who purchased their homes several years ago and are paying a higher interest rate than the current national average. This kind of loan allows you to save money over the life of your loan. There is no down payment required, but there may be a few closing costs that you’ll need to pay out of pocket.
Contact our FHA refinance experts to find out about your options.
If you are considering buying a home that needs repairs, and need to finance in repair costs, consider an FHA 203k loan. This type of loan allows the buyer to finance in up to $35,000 in repairs. One thing to keep in mind is that the actual amount of repair costs should be kept at ab $31,000, due to FHA’s requirement for a buffer in the case of repair cost overruns.
With historically low interest rates, it’s a great time to contact one of our FHA loan professionals to find out which type of loan is best for you.