FHA Loans: Great Benefits and Easy Qualifying
FHA loans have some of the least stringent approval requirements when it comes to home financing. They have great benefits, including minimal down payments and competitive interest rates. If you’re looking for a loan that’s easy to qualify for, contact us to talk about FHA loans and FHA Streamline refinance from Primex Mortgage Corporation. We finance clients in Rockville, Bethesda, Gaithersburg, and nearby Maryland. We’ll look closer at your finances and find mortgage solutions that work for you.
Introduction to FHA Loans
FHA loans are, as their name implies, insured by the Federal Housing Administration, which is a branch of the US Department of Housing and Urban Development (HUD). FHA loans were developed in 1934 to help encourage lenders to finance a broader variety of borrowers. FHA loans are fully funded by private lenders and only insured through the government. If a borrower defaults on the loan, the government reimburses the lender for up to a certain percentage of its value.
Because they’re insured through the government, FHA loans are a type of nonconventional loan. Other common types of conventional loans are VA loans (insured through the U.S. Department of Veterans Affairs) and USDA loans (insured through the U.S. Department of Agriculture). Nonconventional loans share a few characteristics, including low down payments, minimal closing costs, and easy credit qualifying.
The Basics of FHA Loans
For FHA loans, you can secure a down payment as low as 3.5% with a credit score of 580 or higher. If you have a score between 500 and 579, you can still secure an FHA mortgage, but you will need to have at least a 10% down payment.
In some cases, nonconventional loans have higher interest rates than conventional loans that aren’t backed through the government, because they are a higher risk to lenders. Because our mortgage professionals have longstanding relationships with quality, FHA-approved lenders, we can still provide very competitive interest rates for FHA loans.
FHA Streamline Refinance
If you have an existing FHA loan and think you could save over time with refinance, consider an FHA Streamline refinance. This unique refinancing option is only available to those who have been approved for and secured FHA loans already. They must save the borrower over time. Streamline refinances are much simpler than first-time FHA loan origination. They do not require appraisal and some clients do not have to provide a credit report. You must wait at least six months before you can apply for FHA Streamline refinancing.
If you’re ready to secure an FHA loan or refinance with FHA Streamline, we’re here to guide you through the process. Our qualified professionals at Primex Mortgage Corporation have the answers you seek. Contact us to see if you qualify and even secure pre-approval. We work with clients in Rockville, Bethesda, Gaithersburg, and nearby Maryland.