The FHA does not lend money, it insures it.  An FHA-approved mortgage is insured to the lender in case the homebuyer defaults on the loan.  Lenders, such as Meridian Financial, who wish to offer FHA products must meet several financial requirements and undergo a difficult and lengthy application process to achieve FHA Approval.  Only FHA approved lenders are legally permitted to originate FHA mortgages.  Only specially-trained, FHA-approved underwriters may legally process/underwrite an FHA loan.
  
Benefits of an FHA Mortgage

Imperfect Credit History

If your credit is a bit “challenged”, FHA might be the loan for you.  FHA programs tend to be more forgiving than conventional mortgages with regards to past credit history. 

·      FHA loans are not credit score driven.  FICO scores do not apply.

·      Bankruptcy.  You can obtain an FHA loan two (2) years from the discharge date, assuming good credit has been maintained since the debts were discharged.

·     Foreclosures.  Having maintained excellent credit after a foreclosure, you can obtain an FHA loan two (2) years from the final date of foreclosure.

·     Mortgage payment history is important.  Prior late payments will require a letter of explanation but current late payments are unacceptable.  

FHA mortgages are an attractive option to many first-time homebuyers, as they can finance 97 percent of the purchase price putting down only 3 percent.  In some cases, when combined with various Down Payment Assistance Programs and up to 6 percent Seller contributions, the down payment can be zero.

FHA also allows homeowners to obtain an FHA refinance.  This makes it possible to lower your interest rate and your monthly payments, despite having blemished credit in the past.  With so many Americans facing interest rate resets on their adjustable-rate mortgages, many are struggling to keep up with the increasing mortgage payments.  Current FHA mortgage holders may be eligible for an FHA Streamline Refinance with or without an appraisal.  

·         Very competitive interest rates.  There is little to no adjustment to the interest rate for an FHA loan.  The rates vary within .125 percent of a conventional loan.

·         FHA offers both Fixed Rate mortgages for 10, 15, 20 or 30 year terms and Adjustable-Rate mortgages as well.

·         MIP (Mortgage Insurance Premium) is funded into the loan.  A premium of 1.5 percent of the loan amount is added to the loan balance instead of being paid out-of-pocket.  Additionally, a small portion of the mortgage insurance premium is added to the monthly payment but is much less than private mortgage insurance premiums.

·         Allowable Debt Ratios are higher than the limits imposed for conventional loans.

·         FHA home repair demands are much more reasonable than they were in the past.

·         Increased loan limits with the passing of the FHA Modernization Act of 2007.  This means more homeowners with larger loans will now be eligible for an FHA mortgage. 

Due to FHA regulations, all FHA mortgage applications must be taken through a corporate entity.  To apply now for an FHA mortgage click here and you will be linked to my personal Meridian Financial homepage to complete a secure application.  

  APPLY FOR AN FHA LOAN