An FHA loan refers to a home mortgage that is insured by the United States government. This type of home mortgage is typically easier to qualify for than a conventional, full-documentation loan. The FHA loan is available as a Texas Refinance option, as it is available to homeowners in all 50 states.
Even if you have had major credit issues in the past couple of years, chances are that you can qualify for some type of FHA loan program. Many are surprised to find that even borrowers with a recent bankruptcy may qualify.
FHA does not actually extend the financing, nor does the agency set interest rates. The Federal Housing Administration was created in 1934 and has been providing strength and stability to the 1-4 family home market.
An FHA-insured mortgage can be used to purchase or refinance a new or existing single family home, duplex, triplex, quadplex, condo or manufactured home (on a permanent foundation).
FHA Loan Down payment
In contrast to conventional loans, which may require down payments of 10% (or more) — FHA mortgage loans have a 3.5% down payment requirement. This money can come from a variety of sources, including family members or a charitable organization that provides down payment assistance.
FHA and the Hope for Homeowners Program
In July of 2008, President George W. Bush signed legislation that created the Hope for Homeowners assistance program. This initiative allows HUD to continue providing FHA-backed mortgages. The initiative continues in the Obama administration, though few homeowners find that they can actually qualify.
Availability and eligibility rules have changed frequently during the Obama administration, but FHA loans are still available and FHA modifications can sometimes be worked out to prevent a foreclosure situation. But you must act quickly to begin the process. You will encounter a lot of conflicting information, but continue to be persistent and get ready to make plenty of phone calls. FHA mods do happen. Keep pressing forward to see that you are at least allowed to apply.
Contact a local HUD-approved housing counselor for immediate assistance, or call the HOPE NOW Alliance, 1-888-995-HOPE.
resources:
Hud.gov
The H4H program is currently for owner occupants only and the borrowers must meet certain eligibility qualifications. An FHA-approved lender can provide complete details.
FHA Loans Can Stop Foreclosure
In some circumstances, FHA loan programs can provide the assistance you need to keep your home, if you have fallen on difficult financial times. If you are facing down foreclosure, speak to a lender about any current FHA loan options that might fit your situation.
Find out if an FHA loan program is right for your Texas Refinance or Texas Home Mortgage.