FHA Loan

An FHA loan is a home mortgage that allows for a purchase or refinance with a low down payment. An FHA loan is designed to help those who would otherwise not be able to afford a down payment on a home, and also for those who do not qualify for other types of mortgages.

FHA will go 95% cash out for a refi note this applies to a
current active second note. In sense we are paying off a Combo Loan
into a single note. See www.efanniemae.com for the Geo Coder on loan limits. Other lending issues apply such as current note vs proposed.

A Federal Housing Adminisration (FHA) can be beneficial to many borrowers. You should consider a FHA loan if you are a first time homebuyer, can only afford a small down payment, want low monthly payments or don't have perfect credit

AN FHA loan will allow someone to qualify using non-traditional credit as well. Non-traditional credit items include rental history, electric, cable, phone, and gas bills. Any other bill paid monthly can be used as well. A 1 year history of timely payment for 4 different accounts can qualify a consumer for an Fha loan with little or no traditional credit established.

An FHA loan is an excellent way to purchase a mult-unit dwelling as well. FHA allows for Owner-Occupied purchases of 2-4 unit properties with as little as 3% down. An FHA loan also allows for up to a 6% seller concession. For 3-4 unit properties, 3 months mortgage payments are required as reserves after closing.

An FHA loan is a great program because a low credit score does not automatically disqualify you. You can qualify with a low or even no credit score as long as you can document 1 year of timely credit payments. Exceptions can be made with strong compensating factors and a good letter of explanation.

FHA will not disqualify a refinance on a property that has been recently listed as well. Proof of delisting is required along with a letter of explanation.

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