FHA loans offer more flexibility, especially when it comes to credit score, income level, homeowners’ equity and down payments. This makes them one of the most preferred alternatives to fixed-rate and adjustable mortgages.
Because FHA loans are government-backed, a typical FHA loan includes an upfront fee that is bundled into the loan, and includes monthly mortgage insurance. FHA loans enable several homeowners, who do not qualify for conventional loans, to purchase a new home or refinance an existing home. FHA loans offer the following advantages to a homeowner:
FHA loans provide one of the easiest ways to qualify for refinancing or for buying a home. The loan is issued by the U.S. Government and is appropriately insured to that extent. It gives the homeowner flexible choices. The loan allows you to:
The actual payment, on account of the FHA loans, will vary, depending upon your current situations and the prevalent market interest rates at the time of loan application. Once granted, you can easily pay off your mortgage at any time without any pre-payment penalties. The loan can be offered with 30-year, 25-year, 20-year or 15-year fixed rates or as a 5-year adjustable-rate mortgage. You can opt for either, based on your needs.
Refinancing your home with FHA loans is faster and easier when opting for a FHA Streamline loan. It requires no potential appraisal. To learn more about the loan and its requirements and benefits, contact a Loan officer at AHMCLoans.com today!