Federal Home Loan Centers programs are intended to assist the following:
- First-time property buyers;
- U.S. residents recovering from a short sale, bankruptcy or foreclosure;
- People purchasing manufactured homes or fixer uppers;
- Current homeowners interested in making energy efficient upgrades;
- Homeowners who wish to borrow money;
- Senior citizens who want a reverse mortgage.
When an applicant decides to use a Federal Home Loan Centers Program, it is advised that they apply prior to signing a contract to purchase or sell a home.
All purchase and sales agreements should contain transaction-specific contingencies.
The lender will confirm and evaluate the applicant’s credit and occupational history, compatibility with the underwriting approval guidelines, and then the lender will either deny or approve the final terms.
Individuals interested in applying for a program can start the process by completing the form on this page.
For interested applicants, it is important to understand that FHA loans were designed for first-time home buyers, seniors and people purchasing fixer-uppers or manufactured homes. Despite this, because of the numerous advantages of FHA loans, they are a solid option for anyone eligible, and interested in a fixed 15 or 30-year loan term.
The easiest type of real estate loan to qualify for, the FHA loan only requires a small down payment of 3.5 percent and is accessible for borrowers with a less than ideal credit history. To qualify for an FHA loan, an applicant must be able to meet the following criteria:
- Two years of current and steady employment
- Lawful residence in the country, a valid SSN and current legal age to sign a mortgage.
- Accessible funds that can cover a minimum down payment of 3.5 percent (note: down payment money can be gifted from family members and the closing costs can be paid for by the lender, seller, or the employer of the borrower for up to six percent of the sales price).
- Most be 24 months removed from a bankruptcy with good credit
- Must be at least 36 months removed from a foreclosure with good credit
- Mortgage payment needs to less than 31 percent of the applicant’s gross income monthly
- Total monthly debt must be lower than 43 percent of the applicants monthly income
- A minimum of a 580 credit score. Borrowers can be approved with a score less than 580 but a larger down-payment is required. Borrowers with no credit score can also be approved. Call for details.
For more details on eligibility requirements, visit the Federal Home Loan Centers FHA Requirements Page!
Purchase and Refinance FHA Home Loans
An FHA purchase loan allows qualified applicants the opportunity to purchase a home at an interest rate competitive with conventional loans, and often with less money down. It’s also an ideal option for individuals who have had difficulty finding other sources of financing to purchase a home.
An FHA cash-out refinance loan is of significant benefit to owners whose property has risen in market value following the purchase of the home. Cash Out refinance enables owners to refinance their current mortgage by taking out an additional mortgage for more than what is owed.
An FHA Streamline Refinance allows owners to reduce the interest rate attached to their current home loan speedily and often without an appraisal. This option reduces the amount of paperwork needed by your lender allowing for more time saved.
Maximum Loan Amounts
FHA mortgage loan limits differ based on house type, as well as the housing market of the state and county that the property is located in. For example, San Diego County has a limit of $726,525 for a single family home, in contrast to San Bernardino, which has a limit of $314,827. This is because the property value is significantly less on average in San Bernardino County. Annually, the FHA recalculates its national limits. The limit ranges between $314,827 and $1,397,400.
For more information about FHA loan limits, eligibility, appraisal fees and funding fees, contact Federal Home Loan Centers at 877-432-5626