FHA Loans

What is an FHA Loan, what are the benefits of FHA Loans and FHA Information. Let First Wholesale Lending help you today!

FHA Loan programs are ideal for home buyers. The programs are designed to support those buying a home for the first time. You are just a few simple steps away from finishing the hardest part of securing an FHA loan. Apply here to see if you are eligible to pre-qualify for a loan and let our FHA Mortgage Specialist help you accomplish your dreams!

Why Is FHA Great For Home Purchases?

The main benefit to an FHA home loan is that the credit criteria for a borrower are not as strict as FNMA or FHLMC. Someone who may have had a few credit problems should not have a problem obtaining FHA financing. Also, FHA loans are assumable, allowing a person to take over the mortgage without the additional cost of obtaining a new FHA loan if they qualify. In addition, the seller must pay for part of the closing costs (called non-allowable costs) while a borrower's allowable costs can partially be wrapped into the loan. 100% of the down payment and closing costs can be gifted.

Additional FHA Information

• Even though most lenders do not allow you to go to 95% LTV (loan-to-value), with an FHA Loan you are allowed to pay as little as 3.5% of the purchase price of your home for your down payment (96.5% LTV), and finance your closing costs with your mortgage loan. The FHA can guide you toward programs that require no down payment.
• With an FHA Loan you can purchase a home in need of repairs and finance the repair costs with the mortgage. This way you can make the necessary repairs immediately without having to come up with the money yourself.
• FHA loans offer a loan guarantee for mortgage companies. If you acquire an FHA loan to purchase a home, the FHA is not actually lending money to you, the buyer; the FHA simply guarantees the lender in case you, the borrower, default on your mortgage payments.
• You can purchase manufactured homes and condominiums with the mortgage.
  You can finance the cost of energy-efficient repairs with the mortgage.
• It is important to understand, that FHA loans are funded by financial institutions such as mortgage centers or banks. The Federal Housing Administration is a branch of the Department of Housing and Urban Development and provides lenders with insurance on your FHA loan. The FHA is here to help you become a homeowner or refinance into a lower monthly payment. Both the FHA and HUD offer low-interest loans to qualified borrowers so that they may purchase homes. The FHA and HUD also offer mortgage insurance for those who are part of the VA. Whether you are a first time home buyer, purchasing a new home or refinancing your existing home loan, FHA loans are a great way to go.
• In order to qualify for an FHA loan, you must have a valid social security number (if you do not have a social security number call in and see if you may qualify for loans specially designed for borrowers like you). You must have legal residency in the United States and be of a legal age to sign on a mortgage in your state. All lenders will verify the income, assets, liabilities, and credit history for all parties on the loan.
• With an FHA loan, there cannot be an ownership interest of the property without qualifying for the loan.
• FHA's mortgage programs typically don’t have a maximum income limit for qualifying, however the borrower must have sufficient income to qualify for the mortgage payment and other debts. Income limits may be present when qualifying for down payment assistance or other secondary financing programs (including those funded by HUD) that may be used in conjunction with an FHA loan.
• FHA does not require a minimum credit score, however past credit performance serves as the most useful guide in determining a borrower's attitude toward credit obligations and predicting a borrower's future actions. Using FHA's guidelines, lenders will make a credit determination based on the merits of each case.

To find out if you qualify,