As the home finance industry continues to consolidate the value of FHA mortgage loan programs has become evident than ever before. Just last month, FHA rates fell to 50 year lows. Thousands of borrowers were blessed with fixed rate 30-year mortgage loans as low as 4.25%. The 15-year fixed FHA mortgage was available at 3.75% for the select few that could qualify for this dream home loan option.
Imagine a $1,400 a month payment for a $300,000 Loan!
With all of the good news on rates, the reality was that very few American borrowers were eligible for these low rate mortgages. Conforming and FHA guidelines did tighten in 2010, but many insiders are optimistic that consumers will see more flexibility with FHA loan programs later this year. FHA continues to be a popular choice for borrowers seeking home financing or loan refinancing. According to Colorado lender Shawn Downs, “Consumers are learning that even if they were rejected in the past that FHA likes to extend second chances with borrowers that can demonstrate a strong ability to afford FHA mortgage products.”
Popular FHA Loan Programs to Watch in 2011
First Time Homebuyer Loan – New home buyers only need a 3.5% down-payment to qualify for FHA financing.
FHA Refinance Loan – This is a rate and term loan that enable borrowers to get approved for a FHA refinance option up to 96.5%.
FHA Streamline – For borrowers who currently have a FHA loan, the FHA streamline refinance is the most sought after refinance loan because no appraisal or income documentation is needed.
203B Cash Out Refinancing - HUD lowered the LTV restrictions from 95% to 85% for borrowers that want to receive money back when in a refinance transaction.
203K Home Rehabilitation- The 203K loan is similar to a home improvement loan for the rehabilitation of single family homes that meets HUD’s requirements. Finance to 115%.
3 comments so far
[...] Read the original FHA Blog Article > FHA Mortgage Loan Programs [...]
[...] other third-party originators, already approved by FHA, will be authorized to continue to originate FHA mortgage loan programs through the end of the calendar year without sponsorship of an approved FHA [...]
[...] FHA mortgage loan can be a valuable tool for those that want to buy a home, but who do not have the starting capital [...]
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