Federal Housing Administration (FHA) Mortgages
FHA loans used to be a very difficult loan to do. alot of real estate agents/brokers will try to tell you not to do one because of it. The truth is that they are one of the best loans for a consumer. They offer fixed rates and terms that are almost impossible to beat. And now that they have re-vamped the system a bit, they are actually very easy to close. Most of the things that made them difficult in the past are gone. The genral rule is if the home is safe and secure, then it will qualify
FHA Loans cover a very wide area. They are the ones who guarantee several different loan types. Some examples are:
- Purchase - to 97%
- Refinance - 97% for Rate and term
- Refinance - 95% for Cash Out
- Reverse Mortgages - HECM loans
- Oregon Bond
All FHA loans have mortgage insurance (also known as PMI) They allow for 1-4 unit properties, as long as one unit is owner occupied. FHA Loans are full doc loans, and do not allow for stated income. You can have a gift for your down payment and a non-occupant co-borrower if necessary to help you qualify.
FHA Loans also are great for manufactured homes. There are some requirements that need to be met but, if you can meet them, it will be the best loan you can get. FHA loans will allow for up to 95% loan to value on cash out and 97% purchase. Some of the manufactured home requirements are:
- Need to be built June of 1976 or newer. Alson known as post HUD.
- Need to be doublewide or bigger.
- Be on a permanent foundation.
- Permanent foundation is defined as being tied down to the ground. Post and pier is acceptable as well as concrete perimeter. Post and pier is a common way to set up the homes and as long as there are tiedowns, it works fine. The tiedowns must be attached to poured concrete footings or poured concrete perimeter. If you need tiedowns on your home, let us know. We can point you to a reliable contractor to install them.
- Must be fee simple. Owning the land with the home is required.
A small caution: It takes a significant effort to get licensed to offer FHA loans. So if a broker tells you that FHA isn't the right thing to do, check and see if they are licensed. they may be trying to steer you away since they can't offer it.
