FHA is the most common loan being utilized for purchase mortgages today. FHA does not have the restrictions of VA, USDA, CDA or any other First time home buyer program.With loan amounts up to $729,750 FHA and the lowest interest rates available, FHA is the program of choice for most of my clients. FHA requires a down payment equal to 3.5% of the purchase price of your new home. All of your down payment can come in the form of a gift and FHA does allow for non-occupying co-borrowers if they are an immediate family member. FHA also requires that you pay a monthly mortgage insurance. Many people ask "how long do I have to pay FHA mortgage insurance?" The answer is, you must pay the monthly mortgage insurance for at least 5 years and have paid down you pricniple balance to at least 78% of the original appraised value.

 

 

FHA is also a great program for those looking to refinance a conventional mortgage, but cannot qualify due to program restricitions. Maybe you have lost equity, FHA allows for up to 97% financing for no cash out refinances. FHA also allows for 85% financing on CASH OUT JUMBO refinances. The current conforming Jumbo cash out limit is 60%. If you have a JUMBO mortgage (over $417,000) and are looking to take cash out, FHA might be your best bet.

 

 

The FHA streamline has long been the easiest method of refinacing your home. Traditionally, it has not required an appraisal, credit check or income documentation. While the guidelines for these loans have tightened significantly, they are still a viable option. Since they are now a trickier propositon, it is imperative that you work with someone that  knows how to get these done with as little out of pocket expense as possible. Please contact me directly if you are interested in applying for an FHA streamline mortgage without an appraisal. I will ask all the important questions that will save you thousands on your FHA streamline.