What is an FHA Loan?
Backed by the Federal Housing Administration, FHA loans allow borrowers to qualify for a loan with a low down payment and lower credit scores than standard conventional loans. This has made the FHA loan a popular choice for first-time home buyers as well as those who are rebuilding their credit after a setback.
While traditionally groups with unique circumstances may have historically looked to FHA loans for their new home financing due to its more lenient qualification standards, FHA loans may be the right choice for any potential home buyer.
FHA vs. Conventional
**Conventional loans require Mortgage Insurance when you put less than 20% down. FHA requires Mortgage Insurance on all loans regardless of down payment.
FHA Streamline Refinance
Borrowers that have an FHA mortgage that is greater than 6 months old and would like to refinance may be able to take advantage of an FHA Streamline refinance. An FHA Streamline may be a convenient way that you can take advantage of lower interest rates and decrease your monthly mortgage payment over the life of your loan.
The advantages of an FHA Streamline refinance include:
• No home appraisal typically required
• No paystubs, bank statements or employment verification required
• No credit score requirements
• Simple closing process
If your loan is less than three years old, you may receive a refund of the upfront mortgage insurance premium that was paid on your existing loan
Talk to one of our professional Mortgage Consultants today to learn about which mortgage option is right for you!
