FHA Loans

Is An FHA Loan Or FHA Refinance Loan Right For You?

FHA loans are a great way to become a homeowner when other options seem closed. If you have struggled to save up enough money for a down payment, have been denied by private mortgage lenders for other reasons, or didn’t qualify for a VA loan, an FHA loan could be just the ticket to get you into the home of your dreams.

What An FHA Loan Is

  • A mortgage loan that is backed by the federal government
  • Open to anyone who qualifies
  • Available to both first time buyers and homeowners who want to refinance
  • Available as an adjustable rate (ARM) or a fixed rate mortgage

What An FHA Loan Is Not

  • A loan from the federal government
  • Limited to certain income levels

How Does An FHA Mortgage Work?

  • The loan program is managed by the Federal Housing Administration (FHA); the largest insurer of residential mortgages in the world.
  • FHA loans are available only through FHA-approved lenders, but an FHA loan works just like a conventional mortgage loan.
  • You will work with a private lender and make monthly payments to that lender according to the terms of your loan.
  • You’ll qualify for interest rates based on your income, debt ratio and credit score.

How Is An FHA Purchase Loan Different From A Conventional Loan?

The key difference between FHA mortgage loans and conventional loans is that FHA loans are insured, or guaranteed, by the federal government. This makes FHA home loan buyers very attractive to private mortgage lenders because the government is backing the loan.

While the buyer is still responsible for the mortgage loan, the guarantee lowers the risk the lender takes in providing the loan, should the buyer default on the loan.

Types Of FHA Loans

There are several types of FHA loans available. Loans exist for first time homebuyers as well as those who are refinancing. There is the FHA Energy Efficient Mortgage or FHA EEM and the FHA Section 203(k) that allows for approved remodel/update costs to be rolled into the mortgage. There are even FHA loans for buyers over the age of 62, and those who are purchasing a mobile or manufactured home.

No matter what your situation, chances are there is an FHA loan that can meet your needs. At Capital Bank, N.A., we specialize in FHA loans and are experts in the various types, their benefits, and who qualifies. We take a personalized approach to each and every loan we manage, and never rest until we get the best loan for your unique situation. Get started today!

FHA Loan Benefits

There are many benefits to FHA purchase loans. These loans are generally easy to secure for both ideal candidates and less-than-perfect candidates alike. This is because FHA loans are open to anyone and do not have income requirements. Even first time homebuyers with very little to put towards a down payment can get an FHA mortgage loan for their home purchase. This is in stark contrast to most first time homebuyer programs that do require a set down payment, as well as a certain income level in order to qualify.

Other benefits to purchasing your home with an FHA loan are:

  • Low or no down payment required
  • Reduced closing costs in some cases
  • Better interest rates than the open market in some cases
  • Easier to use gifts for down payment and closing costs
  • No prepayment penalty
  • FHA loans are assumable
  • Possibility of reduced payment or suspension of payments during financially difficult times

With a decent credit score and responsible debt-to-income ratio, we can help almost anyone get an FHA mortgage. If you are a Veteran who didn’t qualify for a VA loan, or if you have struggled to obtain a conventional loan, an FHA loan is an excellent alternative. Apply today with our simple online form or contact us at (866) 216-3577 or info@valoansfinance.com and let Capital Bank, N.A. get you into the home of your dreams!