FHA Mortgage Lending

FHA lenders provide home lending that enables homeowners with bad credit to refinance with a low fixed rate loan. FHA mortgage lending has expanded greatly since its inception in 1934. Millions of consumers have become homeowners with FHA home loans. Recently FHA lending has opened the door for borrowers to refinance their home and take cash up 85% of their home’s value.  Thousands of sub-prime borrowers flocked to the FHA lenders so that they can lower their payments and lock in a fixed interest rate for their first mortgage.  Unfortunately the risky lending caused FHA defaults to rise and FHA reserves dwindle.

FHA Lenders Provide Helpful Advice

In 2010, HUD revised the FHA lending spectrum with new FHA requirements for Approved FHA lenders and revised FHA guidelines for borrowers looking to refinance or buy residential properties in the United States. FHA Lenders were issued a temporary increase for FHA loan limits in high cost areas.

• FHA Lenders were required to have a higher net worth and an increased capital reserves
• FHA introduced new appraisal requirements for FHA loans
• Down-Payments for FHA Home Buying Increased to 3.5%
• No Financed Fees on FHA Streamline Programs
• FHA Lenders raised credit score requirements

The interest rates for FHA refinance and home purchase loans remain competitive and comparable to conventional Fannie Mae mortgage rates.

Rate & Term Refinance with FHA Mortgage

Because of plummeting home values and high adjustable rates, many consumers are inquiring about the FHA Secure options that are offered to homeowners who were never late prior to their mortgage adjusting.

FHA Loan Blog - Read, Comment and Post Questions about Home Buying and Loan Refinancing.