An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan which are provided by FHA-approved lenders. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford.
Additionally, many borrowers can refinance their home with an existing FHA mortgage through programs like the FHA Streamline Refinance program, which allows you to take advantage of the lower rates even if you don’t have a lot of equity built up in your home.
If your home has lost value in a down economy, these refinance options are advantageous because they don’t require a home appraisal. You can use your original buying price as your home’s current value, regardless of what it’s actually worth today. Moreover, FHA Streamline Refinance reduces the amount of paperwork required by your lender, saving you valuable time and money.
Advantages of FHA Loans
FHA insured mortgages are some of the best kinds of mortgages available. This is because they can help more people into the home buying market.
- Easier to Qualify. Because FHA loans are backed by the federal government, lenders are more likely to give you the kind of loan that you need.
- Low Down Payment. FHA insured mortgages only require a 3.5% down-payment which makes it easier for people to own homes. Unlike many other loan programs, the 3.5% can come in the form of gifts.
- More Borrowers Qualify. Because FHA insured loans are backed by the government, those with a poor credit history have an easier time getting this kind of loan.
- Better Interest Rates. With the backing of the government, these loans typically have a better interest rate than most traditional mortgage loans.
- Better Home Stability. The FHA has programs designed to help homeowners keep their homes during hard times. They will work with you to help your home from falling into foreclosure. Always try to work out problems with your lender before the situation becomes dire.
Contact Primary Residential Mortgage today to learn more about FHA Loans and FHA Streamline Refinance in Utah.
Learn how much you qualify for today by contacting one of our qualified loan officers at (801) 448-7907.