Category Archives: Blog

Home Financing Support and Assistance for Those in FEMA Disaster Areas

It’s not a scenario we like to dwell on, but every year Americans face natural disasters that turn their lives upside down. While we can do our best to prepare, often these horrific events are simply out of our control.

Many people survive wildfires, tornadoes, hurricanes and floods only to return to find their homes damaged or destroyed. Although losing a home can be a traumatizing experience, it’s no reason to give up hope. Many Americans have been able to rebuild their lives and their homes with the help of programs offered through The United States Department of Housing and Urban Development.

If a Presidentially declared disaster has affected your home or your ability to make payments on your home, you may be eligible for assistance through a number of federal relief programs. These programs are designed to help qualified borrowers repair or rebuild a damaged home or buy a replacement property.

Rebuilding with FHA Disaster Relief Loan Programs

If your home is located in a disaster area and it has been damaged to the extent that reconstruction or replacement is necessary, our government loan specialists can assess your eligibility for these programs and guide you through every step of the recovery process.

In order to qualify for these disaster relief programs, the borrower’s application must be submitted to the lender within one year of the President’s declaration of the disaster area. To find out if you are eligible for these programs, simply call 877-432-5626 or complete the free application form on this page.

These programs are available to both homeowners and renters seeking disaster relief. Another key feature of these programs is that the new home does not need to be in a disaster area—it can be located anywhere! If your home has been damaged as a result of recent wildfires, tornadoes, hurricanes or floods and you qualify for an FHA loan, you could be eligible for special $0 down financing.

How the Reconstruction Program Works

When an area is officially declared a disaster area by the President, certain programs take effect which make it easier for homeowners to reestablish themselves. One of these programs is the Section 203(h) FHA home loan mortgage insurance program. This insured mortgage can be used to finance the reconstruction of a damaged home or the purchase of a new home. The FHA insures mortgages to qualified disaster victims through this program by protecting lenders against the risk of default.

The Section 203(h) FHA home loan program only requires a minimum credit score of 580 and does not require a down payment. This program has several features that make it very similar to the standard FHA home mortgage program. Like the FHA 203(b), the maximum loan limit for the 203(h) program varies by county. For the exact loan limit in your area, Click here.

The program allows borrowers to choose between a 15 or 30-year fixed-rate mortgage on the following property types:  One-unit, single family, detached homes, one-unit detached home in PUD and units in FHA approved condominium projects. Please note that the property must meet HUD’s Minimum Property Standards and Requirement.

How the Repair / Rehab Program Works

Another FHA home loan program available to Americans whose homes have been damaged is the 203(k) Rehabilitation Mortgage Insurance Program. This program allows homeowners to repair, improve or upgrade their home. Damaged residences are eligible for this program regardless of the age of the property, providing the property is located in a Presidentially Declared Major Disaster Area. However, the property must have been completed and ready for occupancy prior to the disaster to be eligible.

Home Improvement with the FHA 203(k) Loan

The FHA 203(k) home loan program is not purely restricted to disaster relief. You can also qualify for a loan through this program and use it to make expensive repairs or modifications to your home, bring your home up to code, install solar or make other improvements to the home’s function. The cost of the rehabilitation must be at least $5,000 and the total value of the property must remain under the FHA mortgage limit for the county. For more information on the home improvement aspect of this FHA loan, Click here.

Ready to Rebuild?

We understand that rebuilding can be an overwhelming process. Let our team of government loan specialists assess your unique situation and guide you through every step of the process. We can even provide you with a list of affordable new housing options!

Contact Federal Home Loan Centers at 877-432-5626 today and speak with a helpful representative about your special financing options. Find out if you qualify for an FHA loan.

Federal Home Loan Centers is an approved originator of mortgage loans guaranteed by the US Government. Federal Home Loan Centers is not associated with any government entity.

Sequoyah County, Oklahoma Federal Loan Information

The 2018 $0 down, Federal home loan limit for Sequoyah County is $ 453,100.

Located on the eastern edge of Oklahoma, Sequoyah County is the perfect place for those looking for somewhere with that hometown feel. If you are a lover of the outdoors, then you are sure to enjoy the many beautiful lakes, wildlife refuges, and parks. An excellent time for everyone is waiting at any of the great attractions in the area. People of all ages can receive an education in Sequoyah County, thanks to the excellent educational resources and schools. The county was officially founded in 1907 and was named after an American and Cherokee silversmith. The current population of the county is 41,252.

Don’t miss out on any of the beautiful outdoor spots in Sequoyah County, where you can take in the best views of the local landscape. Tenkiller Ferry Lake is home to some of the most beautiful shores, perfect for relaxing on a nice day. Tenkiller Ferry Lake is also known for its excellent fishing and boating opportunities. Brushy Lake Park is a favorite of local families, offering beautiful shores, picnic shelters, playground equipment, and more. Brushy Lake Park features several beautiful campsites. Other scenic outdoor spots in the county include the Sequoyah National Wildlife Refuge and Cherokee Nation Sallisaw Creek State Park.

Check out the huge variety of local attractions in Sequoyah County, where everyone is sure to have a great time. The 14 Flags Museum is a great place to learn about local history, featuring exhibits on the railroad industry, the historic Lattimore Cabin, and more. The Lattimore Cabin has been standing since 1835. The Cherokee Casino and Hotel Roland is the perfect place for a fun weekend, featuring great rooms, all your favorite casino games, and a variety of live entertainment. The Cherokee Casino and Hotel Roland also features a beautiful golf course and onsite café. Several excellent shopping and dining options can be found in the area.

Sequoyah County takes pride in its excellent education system, which includes several higher education options. Many educational resources can be found in the area, including afterschool programs, libraries, and more. Exciting events hosted by the local schools include sporting events and stage performances. A branch of Carl Albert State College is available in the county and offers a variety of Associate’s Degree and Certificate programs. Indian Capital Technology Center is another higher education option in the county.


Finance Your Dream Home

Apply for a home loan today to receive the best home financing options.


Sequoyah County Property Search

Sallisaw, Gans, Gore, Marble City, Moffett, Muldrow, Paradise Hill, Roland, Vian

74945, 74946, 74948, 74955, 74954, 74962, 74936

Contact Federal Home Loan Centers for a list of great homes available in the area.


Sequoyah County Loan Limits

One-Unit: $ 453,100
Two-Units: $ 580,150
Three-Units: $ 701,250
Four-Units: $ 871,450


Sequoyah County Condo Search

Receiving condo approval is easy with the help of Federal Home Loan Centers.

Muskogee County, Oklahoma Federal Loan Information

The 2018 $0 down, Federal home loan limit for Muskogee County is $ 453,100.

Located in eastern Oklahoma, Muskogee County is the perfect place for people of all ages to live, grow, and thrive. The county is home to many interesting attractions that can’t be missed, including museums, golf courses, a speedway, and more! Receive a great education at any of the excellent higher education options in the area. Fans of the outdoors are sure to love the county’s many parks, waterways, forests, and more. Muskogee County was officially founded in 1907 and was named after the Muscogee Native American tribe. The current population of the county is 69,086.

Enjoy in your interests or find some new ones at any of the great attractions in Muskogee County! If you are a fan of golfing, then you are sure to love the many beautiful courses in the county, including the Cobblestone Golf Club and the Eagle Crest Golf Course. You won’t want to miss out on any of the stage performances hosted at the beautiful Muskogee Little Theatre, which has been standing for over 40 years. The Historic Thunderbird Speedway hosts many exciting races that you won’t want to miss! Other popular attractions in the county include the Three Rivers Museum, River County Water Park, Five Civilized Tribes Museum, and many more!

Have fun and get some exercise at any of the beautiful outdoor spots in Muskogee County. Sequoyah Bay State Park offers some of the best views of the local landscape and is a local favorite for boating and fishing. Many convenient boat ramps and piers can be found in Sequoyah Bay State Park. If you are a fan of camping, then you will love the many beautiful sites in Greenleaf State Park. Greenleaf State Park also features miles of scenic trails, perfect for hiking and bird watching. Other scenic outdoor spots in the area include Honor Heights Park and Three Forks Harbor.

Don’t wait any longer to continue your education! Many excellent schools and educational resource options can be found in Muskogee County. Northeastern State University is one of the largest universities in the area and offers a variety of undergraduate degree programs. Northeastern State University also offers online learning, athletic programs, campus organizations, and more. Bacone College is another excellent four-year option and is one of the oldest higher education options still running in Oklahoma. The county is home to several libraries and afterschool programs.


Finance Your Dream Home

Complete a quick and easy home loan application with Federal Home Loan Centers!


Muskogee County Property Search

Muskogee, Boynton, Braggs, Council Hill, Fort Gibson, Haskell, Oktaha, Porum, Summit, Taft, Wainwright, Warner, Webbers Falls

74450, 74455, 74402, 74401, 74403, 74423, 74422, 74463, 74428, 74469, 74468, 74470, 74435

Finding a home that meets all your needs and wants is easy with the help of Federal Home Loan Centers.


Muskogee County Loan Limits

One-Unit: $ 453,100
Two-Units: $ 580,150
Three-Units: $ 701,250
Four-Units: $ 871,450


Muskogee County Condo Search

Finance a great condo today with the help of Federal Home Loan Centers!

Grady County, Oklahoma Federal Loan Information

The 2018 $0 down, Federal home loan limit for Grady County is $ 453,100.

If you are looking for the perfect piece of the American landscape, then check out Grady County, which is located in southern Oklahoma. The county possesses a rich history and is thus home to many interesting historical landmarks and structures. Be sure to check out all the exciting events held in the county, where you can try some of the best local food. The county features a great education system, including several local resources and higher education options. Grady County was officially founded in 1907 and was named after Henry W. Grady, who was an early American journalist. The current population of the county is 54,943.

Don’t miss out on any of the interesting historical structures in Grady County, where you can see amazing early American architecture. New Hope Baptist Church is a beautiful historic church that has been standing in Chickasha, Oklahoma since 1939. New Hope Baptist Church was added to the National Register of Historic Places on June 5, 2003. The Verden Separate School is a historic one-room schoolhouse that has been standing in the county since 1915 and now serves as a local museum. Other interesting historical landmarks in the area include the Rock Island Depot, Silver City Cemetery, Griffin House, and many more.

People of all ages are sure to have a great time at all the exciting events held in Grady County. The annual Festival of Light is held in the beautiful Shannon Springs Park and features some of the most amazing Christmas light displays. The Festival of Light also features carriage rides, holiday shopping, excellent food, and even appearance by Santa! The Montmartre Chalk Art Festival brings in talented artists from all over the county to show off their work on local sidewalks. Other popular events held in the county include the Droverstock Music Festival, Scholastic Meet, Chickasha Pre-war Swap Meet, and many more.

An excellent education is waiting for everyone in Grady County, thanks to the great local resources. Educational resources available in a nearby the county include several libraries, tutoring programs, and more. The University of Science and Arts of Oklahoma is an excellent higher education option in the area and offers a variety of undergraduate degree programs. The University of Science and Arts of Oklahoma also offers on-campus living, athletic programs, financial aid, and more. Be sure to attend all the fun events hosted by the local schools!


Make Your Home Search Easy

The experts at Federal Home Loan Centers will work hard to make sure you find a home that meets all your needs!


Grady County Property Search

Alex, Amber, Bradley, Blanchard, Bridge Creek, Chickasha, Cox City, Middleberg, Minco, Ninnekah, Norge, Pocasset, Rush Springs, Tabler, Tuttle, Verden

73023, 73055, 73059, 73067, 73002, 73004, 73079, 73082, 73011, 73010, 73089, 73018, 73017, 73092

Finance your dream home by applying for a home loan today!


Grady County Loan Limits

One-Unit: $ 453,100
Two-Units: $ 580,150
Three-Units: $ 701,250
Four-Units: $ 871,450


Grady County Condo Search

Call today for a list of great condos available in the area.

Carter County, Oklahoma Federal Loan Information

The 2018 $0 down, Federal home loan limit for Carter County is $ 453,100.

Located on the southern edge of Oklahoma, Carter County is the perfect slice of American life, featuring great food and friendly people. If you are a fan of the outdoors, then you can’t miss out on any of the county’s beautiful parks and waterways. The county features many different attractions, including museums, art galleries, golf courses, and more. A great education is available to all, thanks to the many excellent schools in Carter County. The county was officially founded in 1907 and was named after Captain Ben W. Carter. The current population of Carter County is 48,190.

Enjoy a warm day outside at any of the scenic natural areas in Carter County. Lake Murray State Park is the perfect place to enjoy a day of aquatic activities, thanks to its’ beach views and convenient boat ramps. Lake Murray State Park also features miles of scenic trails, perfect for hiking, biking, and horseback riding. Bring your friends and family to Ardmore Regional Park to enjoy in its’ ball fields, picnic shelters, playground equipment, and more. Lake Jean Neustadt features beautiful beaches, perfect for a day of relaxation and a nice picnic. Other beautiful outdoor spots in the county include Healdton Lake, Broadlawn Park, and many more.

Have the time of your life at any of the interesting attractions in Carter County. Lake Murray Water Sports & Mini Golf is the perfect place for people of all ages, featuring lake cruises, kayak rentals, and of course, mini golf! See all the amazing stage performances hosted at the Goddard Center For the Visual and Performing Arts. The Goddard Center For the Visual and Performing Arts also features an art gallery with rotating exhibits and art workshops. Other popular attractions in the county include the Gene Autry Oklahoma Museum, Eliza Cruce Hall Doll Museum, Gold Mountain Casino, and many more!

Those interested in continuing their education are sure to find a program they will enjoy at the great schools in Carter County. The University Center of Southern Oklahoma offers a variety of undergraduate degree programs, including counseling, nursing, business, and more! The University Center of Southern Oklahoma also offers graduate degree programs, associate’s degree programs, and transfer options. Other higher education options in the area include Murray State College, Southeastern Oklahoma State University, East Central University and Oklahoma State University.


Don’t Miss Out on a Great Home

Call Federal Home Loan Centers today for a list of beautiful homes available in the area.


Carter County Property Search

Ardmore, Healdton, Lone Grove, Wilson, Dickson, Gene Autry, Ratliff City, Springer, Tatums

73437, 73436, 73438, 73443, 73444, 73458, 73463, 73487, 73401, 73481, 73402, 73488, 73435

Easily finance your new home by completing a quick and easy home loan application with Federal Home Loan Centers.


Carter County Loan Limits

One-Unit: $ 453,100
Two-Units: $ 580,150
Three-Units: $ 701,250
Four-Units: $ 871,450


Carter County Condo Search

Your perfect condo is waiting! Call today for excellent condo financing options!

Lake County, Ohio Federal Loan Information

The 2018 $0 down, Federal home loan limit for Lake County is $ 453,100.

Lake County is located on the northeastern edge of Ohio, giving it some of the best views of Lake Erie. Thanks to its position in the state, Lake County is home to many beautiful outdoor spots, including parks, beaches, and more! For some fun for the whole family, be sure to check out all the fun attractions in the county. Make sure to attend all the exciting events held in the county throughout the year. Lake County was officially founded on March 6, 1840 and was named after the beautiful Lake Erie. The current population of the county is 229,245.

People of all ages are sure to enjoy all the fun and interesting attractions in Lake County. Learn about local history at the Fairport Harbor Marine Museum & Lighthouse, which is home to many interesting exhibits and offers great views of Lake Erie. Gallery One is the perfect place for art-lovers, featuring over 30,000 different art pieces. Gallery One also hosts rotating exhibits, artist lectures, and more. If you are a fan of golfing, then you will love the many beautiful courses in the area, including the Green Ridge Golf Course and the Johnnycake Ridge Course. Other great attractions in the county include the Boulevard of 500 Flags, Lake Metroparks Farmpark, and Mentor Civic Arena.

Make sure to visit all the beautiful outdoor spots in Lake County, where you take in excellent views of the local landscape. Mentor Lagoons Nature Preserve & Marina is the perfect place to see local wildlife, featuring miles of scenic hiking trails and water trails. Visit any of the many beautiful beaches along Lake Erie for great views and the perfect place to relax! Lake Erie is a favorite for fishing, boating, and all other aquatic activities. Other scenic outdoor spots in the county include Headlands State Beach Park and Chagrin River Park.

Truly experience local culture at any of the exciting events held in Lake County. The Lake County Fair is a local favorite, featuring great food, art vendors, and children’s activities. The County Fair also hosts a variety of live acts, including musical performances and dancing. Celebrate local agriculture at the Corn & Pumpkin Festival, which provides a corn maze, craft shows, and more. Other exciting events held in the county include Crafts Corks & Christmas, the Slovenian Grape Festival, and many more!


Make Your Home Search Easy

Contact the experts at Federal Home Loan Centers for help financing a great home in Lake County.


Lake County Property Search

Eastlake, Kirtland, Mentor, Mentor-on-the-Lake, Painesville, Wickliffe, Willoughby, Willoughby Hills, Willowick, Fairport Harbor, Grand River, Kirtland Hills, Lakeline, Madison, North Perry, Perry, Timberlake, Waite Hill

44092, 44095, 44094, 44060, 44057, 44077, 44081, 44086, 44045

Complete a quick and easy home loan application with Federal Home Loan Centers!


Lake County Loan Limits

One-Unit: $ 453,100
Two-Units: $ 580,150
Three-Units: $ 701,250
Four-Units: $ 871,450


Lake County Condo Search

Find, finance, and receive approval on the perfect condo with the help of Federal Home Loan Centers!

Home Financing for Those in Disaster Areas

U.S. Housing and Urban Development has announced that federal assistance will be provided to those who lost homes located in a FEMA disaster area. This means that those who have lost or had their homes damaged by one of the recent hurricanes, fires or floods are eligible for special $0 down FHA financing. Secretary Carson said, “As FEMA begins to assess the damage and respond to the immediate needs of residents, HUD will be there to offer assistance and support the longer-term housing recovery efforts.”

The following states are currently considered designated disaster areas:

AL, AR, CA, GA, IA, ID, KS, LA, MA, MI, MO, MS, NC, ND, NE, NV, OK, OR, PA, SC, TN, TX

Buyers in these states who have lost their home due to a FEMA designated disaster will be able to purchase a home using an FHA loan for $0 down. Even renters who were affected by the disasters are now able to purchase a home in these states without a down payment requirement.


The 203(h) Loan

The federal government has a loan program in place to assist those affected by natural disasters, called the 203(h) Loan. The 203(h) Loan offers financial assistance for both rebuilding homes and buying new homes. More relaxed than a traditional FHA loan, the 203(h) Loan only requires borrowers to have a credit score of at least 580, and doesn’t require a down payment. The income requirements are more lenient as well.

HUD spokesman Lemar Wooley has said, “FHA also relaxes employment and income requirements for disaster victims who may be forced to obtain new employment, temporary employment or who have lost employment documentation in the disaster.”

Please note: The credit score requirement changes from one mortgage broker/lender to another. Federal Home Loan Centers only has a credit score requirement of 580.

Features and Highlights of the 203(h) Loan:

  • $636,150 Max Loan Amount (varies by area).
  • 580 FICO Minimum (our minimum fico requirement)
  • 100% Financing
  • 15/30 Yr. Fixed
  • Original home must be located in a Federally Declared Disaster Area (whether owned or rented)
  • Home must have been destroyed or damaged to such an extent that reconstruction or replacement is necessary
  • Borrower must have been permanent resident of a destroyed or substantially damaged residence
  • Home may be purchased anywhere
  • Must submit application within one year of Presidential disaster declaration
  • Borrower must meet all other requirements for FHA qualification
  • Borrowers with existing mortgages on substantially damaged or destroyed property within the disaster area must show those mortgages are paid off or that an insurance claim has been filed.

203(h) Loan Eligible Properties:

  • One-unit detached homes
  • One-unit detached home in a PUD
  • Units in FHA approved condominium projects
  • Property must meet HUD’s Minimum Property Standards and Minimum Property Requirements

Obtain Your Benefits

Federal Home Loan Centers can help you with every step of the process in obtaining a 203(h) Loan, and can also provide you with a list of affordable new housing options. Contact Federal Home Loan Centers 877-432-5626 today, and speak with a helpful representative about your financing options.

HOME BUYING 101 – A BEGINNER’S GUIDE

Tired of handing money over every month for a rental property? You have a steady income, some money put away, and you’d like to put down roots and be stable. It sounds like conditions are right to consider buying a home of your own.

It’s not as daunting as you may have anticipated, and FedHome Loan Centers will make the process as smooth as possible. The process of how to get a home loan is straightforward if taken step by step, from loan pre-qualification and approval, shopping for a home with your agent, through escrow, and accepting the keys to your new home.

Real estate is a great investment, and it’s also a great time to consider a purchase. For first-time home buyers, a USDA, FHA or VA home loan offers lower interest rates and better terms than a conventional loan. For example, the VA Loan and USDA mortgage are both zero down home loans. The FHA mortgage requirements only require a 3.5% down payment and part of this can be paid by a grant or even gifted from a family member.

Do you know what you are looking for in a home? List your needs first, such as the number of bedrooms, yard size (to accommodate children, garden, etc., or perhaps a yard isn’t desired and would be a headache you don’t need), one-story or two, garage, area amenities and schools are considerations.

You know what you need and want; now how much money do you qualify for? This is called loan pre-qualification, and is the first step in the loan process. It’s generally a quick conversation with a loan officer, or loan originator, who will ask about income, marital status, credit score, etc., in order to determine if and for how much you qualify for.

Once you qualify, documentation will be needed to verify the information provided and aid in the loan approval process. This will include items such as tax returns, paystubs, W2s, work history, bank statements, child support or divorce decree, and current rental or mortgage information. Each loan file is unique, additional documentation may be requested depending on your unique situation. For example, if you have a bankruptcy reporting on your credit report; a copy of the bankruptcy documents will be needed.

When you are pre-approved for a mortgage than you can begin home shopping with confidence. Real estate agents are professionals who know what properties would be a great fit, given your property preferences, sometimes even before the listings go “on market,” giving you an edge over people without loan pre-approval and an agent at their side.

Enjoy the process of home shopping. Your agent may send you listings from the MLS (Multiple Listing Service – a database of available homes), that you can peruse at your computer, but nothing beats seeing the real thing. Go look at homes. Get a feel for the location and neighborhood. Walk around inside the house. Could this be your new home? If you think so, put in an offer. Your agent will help you create an offer letter. If accepted by the seller, escrow opens and the next phase begins.

Escrow is a neutral third-party company that holds funds and regulates payment transactions for both the buyer and seller. The initial escrow account deposit will be “earnest money,” or a good faith deposit, that you, as a buyer, will pledge, thus creating a contract. This earnest money can be used towards the down payment, or towards the closing costs. You may even be able to get the earnest money refunded to you at closing. The amount and terms will be written into your contract.

While escrow is open, it’s time to check on the details of your prospective property. Ordering a home inspection will help uncover problems that you may need taken care of before closing the sale, or may help in negotiating a lower price, or even negate the deal altogether. Meanwhile, the originator on your loan will order a property appraisal to ensure that they are not loaning you more money than the home is worth.

The closing of escrow means the contract has been finalized, property title transfers to your name, and closing costs are paid, generally 3% to 5% of the total loan amount. Your escrow company will help you establish the initial payment your property taxes, insurance payments, etc.

Don’t forget, your agent is there to assist you in all aspects of the home-buying process, from home search to paperwork to closing escrow and keys in hand. Call FedHome Loan Centers to speak with a loan officer at 877-432-5626.

WHAT IS AN FHA LOAN?

Having a hefty down payment to put toward a home can be daunting, and even a deal-killer for hopeful first-time home-buyers. The FHA loan is designed to help ease that burden. This type of loan is insured by the Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD). It’s an excellent option for ending rental drain and building equity.

The FHA provides mortgage insurance on loans made by FHA-approved lenders, protecting them against losses resulting from mortgage defaults. This makes FHA mortgage loans attractive to lenders. The lower interest rates, down payment requirements – often only 3.5% – and more flexible qualification options make them attractive, especially for first-time home-buyers, or those with imperfect credit history.


FHA LOAN REQUIREMENTS

To see if you qualify, begin your FHA Loan Application here. Some of the information you will be asked to provide once you apply includes letters of explanation for previous bankruptcy, foreclosure or short sale, employment / proof of income (like tax returns and paycheck stubs or disability award letters) and residence addresses, all for the past two years, and, of course, your credit score.

If your credit score is greater than 580, you can put as little as 3.5% down on a home purchase. If your score is between 500 and 579, generally 10% is required as a down payment. FHA mortgage rates are affected by credit score, down payment, loan amount, property location / type, length of loan, and points (1 point = 1% of mortgage amount, paid to the lender to lower the interest rate).

Once you are pre-approved for a loan, house-hunting can commence with confidence, since you have the pre-approval letter in hand and you and your real estate agent know how much home you can afford.

If you happen to find a home that you’d like to purchase, but requires some renovation, the FHA 203(k) program may work for you. The 203(k) allows home-buyers to finance up to $35,000 toward improvements along with the purchase. This can include things such as replacing the roof or floors, making energy conservation improvements, modernizing the home, or making it accessible to those with disabilities. Your loan officer can help with the application.

With FHA loans, borrowers are required to an upfront mortgage insurance premiums (MIP). The upfront MIP is 1.75% of the loan amount, but can be financed into the loan. There is also monthly private mortgage insurance (PMI). The monthly mortgage insurance is .85% of the loan amount. The PMI for FHA loans is on there for the life of the loan. So, at some point you’ll want to refinance out of this program but it’s a great way to purchase a property with little money down.

The FHA loan is perfect for first-time homebuyers or those with past credit problems. Federal Home Loan Centers can help start you on the road to home ownership, and will stay with you throughout the process, answering questions and working with you until you find that perfect home. Call 877-432-5626 option 2 to begin.

Why a Credit Pull is Necessary

credit pull 2We have things in life we do not like doing, but we must. For some, it’s eating our veggies and for others, it’s going to the doctor. When you’re getting a loan, doing a credit pull is on top of most people’s “dislike” lists.

From the many calls we get per day for new loans at our office, we have at least one person hang up because we tell them a credit pull is necessary. The disputes we get in return are that they know their credit scores from sites like CreditKarma, or they think it’s going to be a scenario like the funny Experian commercials where the consumer knows their score through one bureau and uses it for the red carpet treatment.

The fact is, while these sites can be helpful info for consumers to know what their credit looks like, a credit pull will always be necessary if you want to borrow a large amount of money. Just so you don’t think we’re picking on you, here are the reasons why it’s a necessary evil:

  1. Credit pulls are about more than those ominous three numbers. A credit report will detail any accounts you have been delinquent on, for what time period, and how often. This is helpful information to evaluate if you are a proper candidate for a mortgage or other big bills like a car loan.
  2. The credit report will verify other information that is helpful to us, and you! One of the biggest factors is verifying your recent resident history. It will also show if you are available for something called Rapid Rescore, which is a potential quick fix for client’s credit scores. Feel free to ask our reps if you are eligible for it!
  3. The credit report is a great tool for improvement. If you are paying for a credit pull, which many, if not all, mortgage companies will require, you will get a copy of your credit report in the mail. This report will show you your three bureaus scores (Experian, Equifax & Transunion) as well as your FICO score, which is what is regarded most when you are trying to get a home. It will display if there are any delinquent accounts you know you paid off that are still showing on your report – this will help you dispute and remove these marks from all three bureaus. You also will see if you have been a victim of identity fraud or a company’s error in giving you a delinquent account when you have proof that it was not your responsibility.

credit pull 1Tips to make the credit pull process and applying for a pre-approval less annoying:

  1. Ask if your credit pull has a fee. At our office, we don’t charge the client for their credit report. Although there is a fee, this is paid for by us.
  2. Use those free resource sites to get an idea of what your credit scores are. Take the scores from the three bureaus and look at the mid-score, which will provide a good idea of what your FICO score may be. Ask the lender what their required minimum score is and if your mid-score falls short, you may know this is not the right time to apply. Just remember, those sites are not on-the-nose accurate, and a proper lender will not use that information to provide you a loan. An official credit inquiry must be made.
  3. If you have no credit scores, you can still be approved for a loan or you can add one to two new lines of credit, wait a short period of time, then apply for a home loan. Use it for small expenses you have every week anyway, such as groceries, gas, public transit, or visits to a coffee shop. Don’t use it for luxury items you never would have bought in the first place. If it’s something you would have paid in cash for, use your new credit card for it. You will build a credit history, and if you pick the right card, you can gain consumer rewards for on time payments like air mile points or cash back. Remember that a line of credit is not free money – it allows you to pay for items when you do not otherwise have the cash on you right now but know you can pay back in a month or less.

Federal Home Loan Centers has some of the lowest credit score requirements around for the VA, FHA, and USDA loan programs. Ask us more by calling 877-432-5626(LOAN) or tweet us at @FedHomeLoan.