What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.
Why Get an FHA Loan
Because of that insurance, lenders can -- and do -- offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements. The FHA is an agency within the U.S. Department of Housing and Urban Development.
The 7 things you must know about FHA loans
2. FHA allows 500 to 579 with 10% down. We are one of the lenders that will do this. Robert Krowel
3.Borrowers using FHA loans have a variety of ways to come up with the down payment. They can use money from their savings, 401k, ira, retirement, and even gift funds from a family member. Robert Krowel can give you details on how to structure this.
4.Debt to Income - This is a standard across the board. The back end ratio can go to 56.9% This is one of the highest Debt to Income allowed on loans.
5. Lenders like Me are allowed to pay for closing cost. Robert Krowel has in his margins to beable to cover all closing cost for FHA loans and still get a very competitive interest rate. Most of all other lenders will raise your interest rate to cover this. We also don't charge any points.
6.All Lenders that are doing FHA Mortgages have to be approved with each state. We are licensed in 21 states.
7. Mortgage insurance is caculated like this. 1.75% on the up front and .85% on the monthly Mortgage Insurance.
This loan is still one of the most popular loans out in our industry still. It is a easy loan to get qualified, has the ability to get bigger exceptions on income stability and interest rates are lower than conventional loans.
Please visit my sight at www.icitymortgage.com/robertkrowel
Please feel free to reach out to me for any of your mortgage questions. We are here to help.
Robert Krowel
Branch Manger
951.756.3748
