FHA Home Refinance

Looking for an FHA Home Loan or Refinance?

Attn: Special Adjustable Rates Available Until For Residents Of  & Neighboring States!

FHA, or Federal Housing Association, assists home seekers with purchasing their dream home.  An FHA loan is a great way for family with a modest income to buy a home.  While the rules have gotten stricter in recent years, there are still plenty of opportunities out there.   Another thing to remember, most people have better credit than they think, usually Fair Credit or better, keep this in mind while filling out our online form.   When contacted by us, kindly ask our loan professional any question you may have.  They will be more than happy to assist you in finding the best loan, either conventional or FHA, for your particular circumstance.   Remember, all loans don't fit all people;   if you need a mortgage loan, we'll find the right one for you.

While the FHA does not provide home loans, they do guarantee repayment to the lenders. This gives the lenders confidence that they will not lose money on the deal, and can offer competitive rates on their mortgages.   The same applies if you want to pursue an FHA home refinance, according to HUD.gov.

With an FHA loan, you can be spending up to forty-one percent of your pretax income on other debt, like car payments or credit card bills.  Conventional loans only allow thirty six percent.  If you have a really good credit history, they might stretch it to as much as forty-three percent.  You still have to be able to make the mortgage payment though, so you may not want to cut it too close.

Update, 12/7/17: Brand new FHA loan limitations for 2018 had been announced on Dec 7, 2017. The revised limits will vary from $294, 515 within low-cost areas, to as much as $679, 650 within high-cost areas. In high-cost areas across america, FHA's loan restrict "ceiling" was elevated from $636, 150 in 2017, to as much as $679, 650 for 2018. The agency also elevated its "floor" from $275, 665 to $294, 515. Furthermore, the National Home loan Limit for FHA-insured House Equity Conversion Home loans (HECM's), or change mortgages, will increase from $636, 150 to $679, 650. These changes are caused by rising home ideals.  Below you will discover the 2018 FHA mortgage limits for low-cost places, high-cost areas, as well as special exceptions with regard to areas like Ak and Hawaii along with expensive construction expenses.

Low-Cost Areas:
The FHA's nationwide low-cost area home loan limits for 2018 tend to be set at 65% from the national conforming restrict of $453, 100 (for the one-unit property.)

Listed here are the specific amounts with this category, by home type:

One-unit: $294, 515
Two-unit: $377, 075
Three-unit: $455, 800
Four-unit: $566, 425

High-Cost Places:
The FHA's mortgage limits for high-cost places (with comparatively higher home prices) tend to be set at 150% from the national conforming limit of $453, 100.

This leads to the following optimum amounts:

One-unit: $679, 650
Two-unit: $870, 225
Three-unit: $1, 051, 875
Four-unit: $1, 307, 17

Ak, Hawaii, Guam, and also the Virgin Islands:
"Special exception" places are places which have higher construction expenses. These areas consist of Alaska, Hawaii, Guam, and also the Virgin Islands.

Within 2018, these four special-exception areas possess a higher FHA mortgage limit ceiling, because shown below:

One-unit: $1, 019, 475
Two-unit: $1, 305, 325
Three-unit: $1, 577, 800
Four-unit: $1, 960, 750.


Qualifications And Other Things To Know About FHA Refinance And Mortgage

If You Are Thinking Of getting An FHA Loan Or Refinance, Here Are Some Things To Know

  • Require a 3.0 percent down payment.  That can change, however, depending on your FICO credit score.  If it's below 580, you may have to come up with more, as much as 20 percent.
  • You can work with state and local programs to get the down payment, or you can still use a "gift" from your parents, but the more questionable down payment help programs have been shut down as of 2008.  Do not lose hope - just do your research.
  • Do not be afraid to try with a low credit score.  Lenders can establish their own minimum score.  You may have to go through some more underwriting, and/or have a bigger down payment, but as long as your score is above 520, there are avenues for you.
  • You need a two year history of on-time bill payments.
  • You need two years of steady employment.

FHA home refinance

Automatic Disqualifications For An FHA Loan Include:

  • A bankruptcy less than two years old.
  • A foreclosure less than three years old.
  • Delinquency on student loans, back taxes or any other type of federal debt.

Next, you have to pay the mortgage insurance up front.   That is a standard 1.75%. It can be added to your loan, but it will increase your loan by $1750 dollars on every $100,000 of the purchase price.   It does not matter how much your down payment is or anything else.  That charge will be there.

Finally, don't forget the insurance premiums.  You must carry insurance for as long as you have the FHA loan and own the home.   While some private mortgages allow you to drop it after a certain percent of the loan has been repaid, it's not that way with an FHA loan or an FHA refinance, according to FHA.com.

Peak Home Loans can help you on your home refinance.   With many new tools available, such as FHA Express, Peak Home Loans knows the way to help you get your dream home or your best, most affordable new payment.  We are here to help.

Mortgage Refinance @ 4.50% - 100k is $506/mo.

Thank you,
Peak Home Loans

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