FHA Loans (Fixed, Adjustable, Purchase, Streamline, Cash-out)

The Federal Housing Administration (FHA) insures mortgage lenders against potential losses that may occur from borrower-default. Because the loans are insured, the guidelines are less strict and allow for more opportunities to homeowners.

Waiting Period Chart

• Foreclosure- 7 years (conventional) 3 years (FHA)
• Short Sale- 4 years (conventional) 3 years (FHA)
• Bankruptcy- 4 years (conventional) 2 years (FHA)

The minimum down payment required for a purchase through FHA is 3.5%, and financing is available for borrowers with credit scores as low as 500. FHA loans are also eligible for future Streamline refinances—these are rate reductions offered to the borrower at no-cost in favorable markets.

Cash-out requirements for FHA loans allow the borrower to liquidate up to 85% of his available equity—the maximum allowed for conventional loans is only 80%.

To off-set the risk and additional benefits awarded to them, FHA borrowers pay a monthly private mortgage insurance (PMI) along with their regular monthly payment. This insurance ranges depending on the term and length of the loan, but for most borrowers is .85% of their loan amount.

We make the process as simple as possible. You don't need to negotiate with the banks, we'll handle everything. Call us at 888-239-6161.