National FHA Loan Information

(Little or No Money Down FHA Loans)

HUD guarantees eligible loan applicants the ability to obtain mortgages with little or no money down. FHA loans can be fully assumable.

If you need to apply for an FHA mortgage or wish to refinance a present mortgage, contact our FHA loan specialist at toll free number or Specify FHA Mortgage in the comment field of our on-line loan application. Let our FHA Department review your eligibility requirements and approve you that FHA mortgage you need.

Application | Top | Apply Now |

The FHA financing process used to be more complicated then conventional financing. Changes over the years have streamlined the FHA loan process. In many cases, FHA home loans are easier to obtain than conventional financing.

Bankruptcy | Top | Apply Now |

Generally a bankruptcy will not preclude a borrower from obtaining a FHA loan. Ideally, a borrower should have re-established a minimum of two credit accounts (such as a credit card, car loan, etc.) and wait 2 years since the discharge of a Chapter 7 bankruptcy or have a minimum of 1 year of repayment with a Chapter 13 (the borrower must also seek permission of the courts to allow this). Furthermore, the borrower should not have any late payments, collections, or credit charge-offs since the discharge of the bankruptcy. If a borrower has suffered through extenuating circumstances (such as surviving cancer but had to declare bankruptcy because the medical bills were to much), special exceptions can be made (rarely).

Cash Investment | Top | Apply Now |

The National Housing Act requires the minimum cash investment to be 3 percent of the sales price. Even though the actual down payment may be less than 3 percent, the balance would go towards the borrower's closing costs. In the event that there are no closing costs, the down payment would be increased to 3 percent. 

Closing Costs | Top | Apply Now |

The following are allowable and non-allowable closing costs that can be charged to the buyer.

Inspection | Top | Apply Now |

A home inspection gives the buyer more detailed information than an appraisal--information you need to make a wise decision. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to:

• evaluate the physical condition: structure, construction, and mechanical systems

• identify items that need to be repaired or replaced

• estimate the remaining useful life of the major systems, equipment, structure, and finishes

A home inspection gives the buyer an impartial, physical evaluation of the overall condition of the home and items that need to be repaired or replaced. The inspection gives a detailed report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors. 

The cost for a home inspection is only a few hundred dollars (which the seller may be willing to pay for).  Most importantly, hire only home inspectors that have the American Society of Home Inspectors (ASHI) designation.  These are inspectors that have met the rigorous standards of education, professionalism and expertise set by ASHI in order to attain that designation.

Mortgage Insurance Premium (MIP) | Top | Apply Now |

In order to cover some of the costs incurred by HUD for FHA loans, they must assess the upfront and monthly mortgage insurance to the home buyer. This upfront fee may ranges from 2.0% to 2.25% (depending upon the term of the loan) and the borrower will have to pay 0.5% annually in mortgage insurance premiums. However, if you are buying a condominium, you do not have to pay the upfront mortgage insurance premium.

Mortgage Insurance Premium (MIP) Refund | Top | Apply Now |

Generally, it takes approximately four to six weeks to receive your MIP refund if you have sold your home and paid off an existing FHA home loan or refinanced your FHA mortgage to another mortgage other than FHA. If you refinance your property to another FHA loan, an MIP refund credit will be applied to the balance you owe against the home at the time of closing. Former FHA borrowers who think they might be due a refund can call a toll free number, 1-800-697-6967, or write HUD at P.O. Box 23669, Washington DC 20026-3699. Or you can look for your name with the HUD Refund Search Form.

Qualification | Top | Apply Now |

The program is open to virtually everyone. There are a few restrictions placed upon credit and residency that may preclude someone from obtaining a FHA home loan.