MORTGAGE AND REAL ESTATE       INFORMATION 

       FHA PROGRAM 

 

 The Federal Housing Administration was begun as part of the New Deal in 1934. It guarantees private home mortgages (FHA loans) and provides funds to promote housing construction, especially for poorer people. It was authorized by the National Housing Act of 1934.

FHA loan is a mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally-qualified lenders.

 

First-Time Home Buyers

Loans insured by the Federal Housing Authority (FHA) are designed to help everyone realize the dream of owning a home. And they’re ideal for first-time home buyers! Because the FHA insures these mortgages, FHA lenders can work with borrowers regardless of credit problems, collections, past bankruptcy filings, or debt-to-income ratios that are higher than normally allowed.

FHA CREDIT GUIDELINES

Credit scores must meet certain guidelines for all FHA mortgages except for streamline refinances that do not require any credit check. Generally credit scores must be in the following range:

400-620+

Certain circumstances will allow FHA to be forgiving and may allow credit scores that are lower if certain compensating factors are meet such as large retirement savings, higher then expected income, or more of a down payment.

If your credit score falls within or below the 520 range you owe it to yourself to start rebuilding good credit click here to learn how.

Bad Credit Refinance Loan

Refinancing your mortgage is a great way to reduce your monthly payment or take out cash to pay off other debts. So don’t let bad credit keep you from refinancing. We’ll help you get a bad credit refinancing loan!

The FHA can help you refinance your mortgage loan – even if you have bad credit. Because these loans are insured by the federal government, more people qualify for FHA loans than for traditional loans. Even if you’ve had accounts forwarded to collections, have filed bankruptcy in the past, or have high debt, you still may qualify to refinance your loan!

By working with the FHA instead of a commercial bank, you could save thousands of dollars in interest and closing costs, too.