FHA Loans

The Federal Housing Administration has been helping people become homeowners since 1934. The Federal Housing Administration (FHA) – insures the loan, guaranteeing The Lender the value of their investment using the Mortgage Insurance Policy (MI). As a result, the Mortgage lender can offer a more aggressive and attractive loan term.

FHA History

Congress created the Federal Housing Administration (FHA) in 1934.

As a result of this implementation, FHA programs helped finance homes for returning veterans and their families after the war in the 1940s. In the 1950s, 1960s, and 1970s, FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower-income Americans.

FHA Purpose

FHA is the only government agency that operates from its self-generated income. The Mortgage insurance premiums it collects from borrowers via lenders are used to operate the program. That is how Americans help Americans. https://en.wikipedia.org/wiki/Federal_Housing_Administration

The purchase of a Primary Residence Home only requires a 3.5% down payment of the purchase price. To illustrate, a $100,000 home could be purchased with a $3,500 down payment.

Additionally, FHA offers the ability to purchase 2- to 4-unit residential properties with 3.5% down payment. However, you must occupy at least one unit of the property, but you are free to rent out all other units. Then, rental income can be collected and used to help you qualify for the Mortgage.

Why FHA Loans

Benefits of FHA included easy credit qualifying credit scores can be as low as 580 Mid Score and with a higher down payment as low as 500 Score while conforming programs require a minimum of 620 Mid score or Higher. https://www.investopedia.com/terms/c/credit_score.asp

If you are a Senior Citizen, FHA offers you the deal of the century: A reverse mortgage. Although commonly misunderstood by consumers, reverse mortgages are a fantastic financial tool for retirees. This program, if properly explained and utilized, can bring financial relief and peace of mind. We, at Mutual Mortgage, have experienced and educated consultants who are able to explain the benefits and correct use of this program. Call us for a free consultation. https://www.investopedia.com/mortgage/reverse-mortgage/

Looking to buy a home in need of repair? Look no more! FHA’s 203K program will finance both the purchase and repairs of that Fixer Upper, all with a 3.5% down payment. Imagine buying a house for $200,000 and expensing $89,500 for repairs! With this loan, you can bundle your home loan and repair costs all in one loan! So, get the house of your dreams that way you like it. Call Mutual Mortgage today and we will work with you every step of the way.

Types 203K Loans included:

Streamline 201(k): Minimal Repairs

A home that does not require much work on it would usually be paid for using the streamline 203(k). This option does not include structural work on the home, such as adding new rooms or landscaping. Additionally, the home must be habitable throughout the renovation period. Furthermore, repairs under the streamline 203(k) are capped at $35,000.

Standard 2013(k): Extensive Work

The standard 203(k) includes any extensive repairs and structural work that need to be done in the home with no capped repair cost. The minimum amount that can be borrowed is $5,000.

Some of the repairs that an FHA 203(k) loan covers include plumbing, flooring, painting, heat and air conditioning systems, bathroom and kitchen remodeling, improvement of health and safety standards, landscape improvements, implementing access tools for disabled persons, the addition of energy conservation systems, and window and door replacements.

At Mutual, we have an expert group of realtors and loan officers that know the ins and outs of any loan. We believe in helping you use real estate to invest in your future. Let us guide you in your wealth-building process, call us for a free consultation today.