FHA & FHA STREAMLINE

FHA

An FHA Loan is a mortgage that’s insured by the Federal Housing Administration. They allow borrowers to finance homes with down payments as low as 3.5%. FHA mortgages are a great option for homebuyers looking for a mortgage program with lower down payment options and flexible qualifying guidelines.

Borrower Benefits and Program Details

  • Borrower is not required to be a first time buyer
  • Available for purchase or refinance
  • 5% down payments
  • Primary Residences, 1-4 units, Condos and Planned Unit Developments
  • Minimum FICO score of 580 (exceptions made for lower scores)
  • Can have less than perfect credit
  • Cash for down payment and closing costs can come from multiple sources, including gifts, grants, and Community Seconds, with NO minimum personal funds required
  • Non-occupant borrowers permitted
  • No Income Limits
  • FHA Loans are assumable
  • Qualify easier with lower underwriting standards
  • Seasoning requirements for derogatory events are less stringent
  • Allows for higher debt to income ratios which allow you to qualify for a larger loan amount
  • Higher Seller Contributions allowing for a greater portion of your closing costs to be covered in the transaction

Disadvantages of an FHA Loan:

  • FHA has loan limits for each county so you are capped at loan amount
  • Mortgage Insurance is for the life of the loan (or you can refinance to get out of it)
  • Upfront mortgage insurance premium (which gets rolled into the loan)
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FHA Streamline

The FHA Streamline Refinance is a special mortgage product, reserved for homeowners with existing FHA mortgages. FHA Streamline Refinances are the fastest, simplest way for FHA-insured homeowners to refinance their respective mortgages into today’s mortgage rates.

Borrower Benefits and Program Details

  • Flexible Requirements
  • No Appraisal Needed
  • Underwriting process typically takes less time
  • Lower interest rates
  • Not as much documentation required

It is important to remember that the FHA Streamline Refinance loans aren’t the same as cash-out refinancing programs, and you won’t get any more than up to $500 cash. The main benefit with Streamline FHA-guaranteed loans is that your monthly payments are permanently lowered. The extra money you have at the end of the month can go a long way toward helping you reach your financial goals.

PLEASE NOTE: LOAN PRODUCTS AND THEIR GUIDELINES CAN CHANGE AT ANY TIME.

DISCLAIMER: This is not an offer to make a loan or to make a loan on any particular terms. All loan applicants must qualify under underwriting requirements and satisfy all contingencies of loan approval. Rates and terms subject to change without notice. Norcom Mortgage NMLS ID # 71655 (www.nmlsconsumeraccess.org)