At Max Mortgage we love helping to serve people by offering a number different loan options. We take pride in being able to serve our community by offering the best home loan options that we can provide for them. One of these options that we offer is the FHA loan. In order to learn more about the specifics of these loans, you can contact our team today. We would love to assist you in learning more in person or over the phone, but will give you a brief overview of these loans in his article. You can reach our friendly and helpful team by dialing 405-601-1920.
There are so many different home loan options that we offer here at Max Mortgage. There are many people in the community who have chosen the FHA loan as the best option for them. The FHA loan provide a number of different benefits for first-time home buyers, as long as they meet the requirements that are outlined below. The FHA loans were first created in conjunction with the national housing act dating all the way back to 1934. The Federal housing administration, or FHA, formed these loans in order to help balance the financial markets. During the banking crisis of the 1930s, the housing market was in shambles, so these loans were formed to help bring more balance.
In light of the banking crisis, the FHA greatly improved the housing market and protected various FHA approved lenders from the losses that could happen if the borrower were to default on the loan. The FHA has had huge success and has ensured 34 million mortgages across the USA to date. Currently, the FHA is actively ensuring 4.8 million single-family mortgages. At Max Mortgage, we are proud to offer a variety of financing options available through these loans. If you would like to learn more about FHA loans, you can contact our team to learn more about their history.
These FHA loans are able to cover a wide variety of borrower needs. FHA loans can cover certain borrower needs such as purchases, special home renovation projects, reverse mortgages, and refinancing. The reason why these FHA loans have become so popular with first-time home buyers is because they are very easy for which to qualify. There are huge advantages that many homeowners are able to take when they qualify for an FHA loan. Some of these advantages include the cash out refinancing and streamline refinancing options that are available to them. The reason why these options are available is to decrease the interest rates of the loan or could be used to obtain extra cash that a borrower may need.
There are two different types of mortgage insurance premiums that are required whenever one applies for the FHA loan. The first premium is due every single month, and the other premium must be paid up front. The monthly insurance premium is based upon a number of different factors such as a loan-to-value ratio, the length of the loan, and the loan amount. This monthly insurance premium usually will fall between the range of .8% and 1.05%. The upfront premium is 1.75% of the purchase price. Whenever the borrower is buying a home, they can decide to either pay this during the close, or roll this premium into their mortgage.
Before one is eligible to receive FHA loans, they must first be able to meet the requirements of these loans. The first requirement is a minimum credit score of 580. If one has a credit score of 580 or above the minimum down payment that will be required with the loan is 3.5% of the purchase price. There are special circumstances where one could still qualify for FHA loan if a credit score is below 580. If one has a credit score below 580, a higher down payment will be required with the loan. There are property requirements that the FHA loan has in place too. The property that the borrower will be purchasing is required to meet very specific security, structural integrity, and safety requirements that the FHA has set.
For those that have a credit score that falls between 500 or 579, they could still qualify for an FHA loan as well. In order to qualify for the loan in this range, one must be able to pay a 10% down payment instead of the typical 3% down payment. The FHA loan also requires very specific income requirements. The first of these income requirements is being able to maintain a debt to income ratio of 43% or lower. If the debt to income ratio of the borrower is higher than 43%, it will be difficult to qualify for the loan. However, there are special circumstances where a 50% debt to income ratio has been approved.
There are two different types of insurance premiums that the FHA loans require. The first premium is due every single month and the other premium must be paid for up front. The monthly insurance premium is based on a number of different factors such as the length of the loan, the loan-to-value ratio, and the overall loan amount. The monthly insurance premium usually falls in the range of .8% and 1.05%. The other premium, the upfront premium, is 1.75% of the purchase price, the borrower, or buyer of the home, has the choice to either pay this premium at the closing of the home, or roll it into the premium of their current mortgage.
There is also very specific maximum loan amounts that have been set for FHA loans. The first maximum loan amount for single-family is $271,050. For those that have a two-family, their maximum amount will be $347,000. If one qualifies with a three family, their loan amount will be a maximum of four to $419,425. Finally, the maximum loan amount for a four family is $521,250. Please call our team to learn more about these maximum loan amounts.
We are passionate about helping people qualify for FHA loans. At Max Mortgage, we are proud to be able to offer many different home loan options to the community. We also would love to assist you during the process at any point and answer any questions that you may have. Our team would love to help you select whatever loan may be best for your specific circumstances and needs. If you are ready to get started on the pre-qualification process then you can reach out to our team today.
Our team is available at phone number 405-601-1920.