Why FHA Mortgage Programs?FHA mortgages offer flexible and affordable solutions to help consumers purchase, refinance and renovate properties. FHA mortgages differ from other types of loans, because FHA products are exclusively for buying primary residences. FHA is known for being able
The FHA Mortgages is a loan covered by the US Federal Housing Administration. People who borrow with FHA mortgages pay upfront and annual mortgage insurance in exchange for low down payments, more lenient credit requirements and the maximum buying power. The mortgage insurance rates are set by HUD and premiums can be reduced only with larger down payments or reduced loan terms.
Here are some reasons to consider FHA mortgages.
Low down payment
With FHA mortgages, you will have the chance to purchase a house without a huge down payment. Standard FHA mortgages allow as little as 3.5% down. In addition, gifts are often allowed from approved sources. Equity One Lending has a special grant program that can allow qualified borrowers to buy homes with no money down with an FHA mortgage.
Credit Requirements are Minimal
FHA Mortgages don’t require much credit, which means that even if you have minimal credit or challenges with credit history, you may still qualify for an FHA mortgage. At Equity One Lending, people who have credit scores of 560 or more can purchase homes through FHA mortgages. FHA refinances borrowers can have scores as low as 500. FHA mortgages have, what many consider to be, the most flexible credit guidelines.
Loans after Divorce, Bankruptcy, Foreclosures and Short Sales
A common misconception is that major credit events, like bankruptcies and foreclosures will make you ineligible for a mortgage. This is far from the truth. FHA allows borrowers to qualify for a mortgage 2 years after a bankruptcy and 3 years after a foreclosure or short sale. And under special circumstances, borrowers may be eligible one year after these events. Equity One Lending specializes in helping borrowers qualify for FHA mortgages after major credit events.
High Debt-to-Income Ratio Limits
Most conforming mortgages restrict borrowers to 43-50% of their taxable incomes. Equity One Lending allows qualified borrowers to go up to 57% DTI on FHA mortgages. This equates to more borrowing capacity and often an approval, when other lenders would deny the file.
Renovation Options Using 203K Programs
Finding the right home can be tough. Finding a home with all of the amenities that you want can be tougher. 203K FHA mortgages allow borrowers to borrow money to acquire and fix up homes. Minor repairs can be done easily using the 203K streamline program. Major or structural renovations can be done with a full 203K loan. With the full 203K, the repair money is escrowed and the job is managed by a certified professional. Equity One Lending can help you turn your house into a home using the 203K FHA mortgage to buy and renovate your next home.
Conventional Mortgage Programs can also be used for new home construction, renovation projects and for financing investment properties, vacation homes or homes for other family members. At Equity One Lending, Kwe Parker and his lending team will help you find the best options to reach your goals.