Many of the mortgages being originated in Sonoma County are FHA loans. FHA loans are insured by the Federal Housing Administration under Housing and Urban Development (HUD). The FHA does not make these loans, the lender does. The FHA insures the lender against default. FHA loans are quite popular due to expanded loan qualifying standards. These loans offer nontraditional credit qualifying unlike conventional mortgages. The FHA insures the loan being made against a primary residence refinance or purchase.
FHA Loan Benefits:
- Are you buying your first home and don’t have a big down payment?
- Do you presently have an FHA loan with a high interest rate?
- Maybe you’re considering buying another primary residence and want to stay little more liquid?
FHA Loans offer they make sense mortgage loan scenario. FHA loans are a helpful loan program for first-time home buyers as well as move the buyers looking to put his little down as possible on the purchase of a primary residence.
FHA loans are also another terrific opportunity for refinancing purposes. Doing debt consolidation? Cashing out on your home equity? How about a low appraisal situation? In many cases an FHA loan can help a current homeowner take advantage of today’s low fixed mortgage rates while the same time saving thousands of dollars in interest. Learn more about FHA loans in these topics:
FHA Mortgage Insurance Premiums To Rise April 2012
FHA Streamline Refinances:
FHA Loan Highlights:
- Purchase a home with as little as 3.5% down
- Refinance up to 98% of the value of your home
- Refinance a current FHA loan out an appraisal
- Refinance cash out up to 85% of the value of your home
- Less than perfect credit scenarios permitted
- Previous short sale ok (certain terms apply
- Previous bankruptcy ok (certain terms apply)
- Previous foreclosure ok (certain terms apply)
- Co-signors are permitted
- FHA Loans are assumable
- Seller can contribute up to 6% of the purchase price for home buyer’s closing costs
How FHA Loans Work
- Chose from 30-, 15-year fixed rates
- FHA Loans contain two forms of mortgage insurance an upfront premium and the monthly premium
- Principle and interest payment will not change over the length of loan
- Mortgage insurance can be removed after 60 months and 20% equity
- Mortgage payment will actually drop when mortgage insurance is removed
- No prepayment penalties
FHA Loans are an excellent choice of financing for loan down payment scenarios, less than perfect credit situations as well as unique scenarios for purchasing or refinancing Sonoma County Real Estate. Discover what your mortgage payment will be by getting mortgage rate quote today. We also offer a complementary online mortgage prequalification for your convenience without any obligation. Get preapproved for your FHA loan today!