Looking for A Mortgage, FHA may be the right way to go!!! Check it out and call Diane & The Team for an FHA lender referral!!!

The reduction in upfront mortgage insurance (MI) fees on FHA (Federal Housing Administration) loans isn’t the only good news for your aspiring homebuyers. Mortgage companies are now offering the FHA Hybrid ARMs in addition to the traditional fully amortized fixed loan products to best meet your client’s needs.

FHA loans provide many benefits; including less out-of-pocket cash required from the borrower:

  • 2/1 buydown option – customers must qualify at Note rate
  • Minimal cash neededJust a 3% minimum investment that can come from a variety of sources. 
  • Alternative credit references acceptable – utility payment history, insurance premiums.    

  • Increased loan limits: FHA has increased the maximum loan limits determined by median house prices for that area and will vary from county to county.

  • ExpandExpanded loan products: Fixed rate and FHA Hybrid adjustable rate mortgage (ARMs).
  • Reduced appraisal requirements: FHA permits an “as-is” appraisal for existing properties and eliminates required inspections for wood destroying insects/organism, a water well (individual water system), and for a flat roof when certain conditions are met (See Bank of America for details).  

  • Streamlined refinancing: Less documentation and automated underwriting for faster approvals