| Federal Housing Authority (FHA) is a mortgage | | | | refinance your mortgage loan even if you have |
| insurance agency in the United States With this | | | | bad credit. Because these loans are insured by the |
| you can enjoy lower, more affordable rates | | | | federal government, more people qualify for FHA |
| because if you fail or late to make a payment, | | | | loans than for traditional loans. The FHA mortgage |
| the lender still receives their money because it is | | | | refinance offers up to 95% cash-out refinance |
| guaranteed by the government. FHA protects the | | | | for old or new FHA mortgages; and up to 97% |
| average American homeowners from losing their | | | | rate and term mortgage refinancing based on the |
| homes by regulating the interest rates and terms | | | | home value. Likewise, there are benefits for those |
| of mortgage on the loans insured. FHA mortgage | | | | with existing FHA loans such as interest rate |
| is easy to obtain, enabling average income | | | | reduction program, no credit or income eligibility on |
| American families The FHA basically looks at the | | | | certain loans, as well as easy and flexible |
| household income level and the calculated monthly | | | | amortization. |
| payment for the loan, ensuring that the latter will | | | | For mortgages with more than 15 years term, |
| not go as high as 31% of the income to ensure | | | | the annual mortgage insurance premium will be |
| that clients will be able to meet up monthly | | | | canceled if the LVR (Loan to Value Ratio) attains |
| obligations without creating stressful impact on | | | | 78% level, and the homeowner fulfilled his |
| their daily living. | | | | payment obligations for 5 years. Another program |
| FHA mortgage loan rates requires a mere 3% | | | | is FHA reverse mortgage program, the loan will |
| down payment. Fixed rate loans are calculated | | | | only be paid back if the person who availed it sells |
| based on the credit record of the borrower and | | | | the property, waives ownership right through title |
| the current market indicators. Since the required | | | | transfer and moving out, or when deceased. The |
| down payment is less than 20%, the US | | | | best thing about the FHA reverse mortgage is |
| mortgage market requires a counterpart | | | | that those who avail the loan cannot be forced to |
| insurance cost to the lender. FHA can help you | | | | vacate their homes. |