UNIVERSAL TRUST MORTGAGE (UTM)

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FHA Loans

It's easy to understand why many people looking for a new home are turning to FHA insured loan programs. Because FHA Loans are insured by the Federal Housing Administration homebuyers have an easier time qualifying for a mortgage. Those who typically benefit most by an FHA loan are first-time home buyers and those who have less than perfect credit.

As FHA Loan specialists we can help you understand any new changes to the FHA loan program. We're here to create a customized solution that works best for you and your family.

How FHA Loans Work

At UNIVERSAL TRUST MORTGAGE (UTM) we want to help you understand how a FHA mortgage loan works. In all actuality the Federal Housing Administration (FHA) doesn’t loan any money, they insure it. This means that you’re considered to be a less risky borrower than someone who might not have the backing of the federal government. Our role is to make sure that you qualify for an FHA mortgage and structure our loan to reflect it.

The other pages in the FHA loan center can help you understand more about this unique program. Whether you are trying to determine if you qualify or if you are interested in finding out what kind of documentation you’ll need to ultimately get your loan, our site can provide you the information you are seeking. 

An important resource for considering a FHA loan is the official Housing and Urban Development website. There you can find even more answers to questions and learn more about insuring your loan through the Federal Housing Administration.

FHA Loan Benefits

 

There’s a maximum limit to what you can borrow for an FHA loan, and how much you can borrow depends on the county in which your potential home is located.

 

You can look up the FHA mortgage limits for one or more areas on the https://entp.hud.gov/idapp/html/hicostlook.cfm. The page also includes a median sale price value for each area. Those are the median price estimates used for loan limit determination, according to HUD.

 

FHA interest rates can be competitive compared to conventional interest rates. This is because the government-backing allows lenders to offer you a lower rate. The rate depends on several factors, including the prevailing interest rates, your income, credit score, the amount you plan to borrow, your down payment amount, DTI (Debt-To-Income) ratio and more.

 

Your eligibility for an FHA loan doesn't hinge on a particular income amount, but you must prove that you have a steady employment history. Your income must be verifiable by sharing pay stubs, W-2s, federal tax returns and bank statements. We may ask for other examples of verification as well.

FHA VARIATIONS

 

There are several different types of FHA loans. The type of FHA loan you choose limits the type of home you can buy and how you can spend the money you receive. This makes it especially important to be sure that you’re getting the right type of loan.

FHA - Rate/Term Refinances

 

Enables you to change the terms of your current loan and replace them with terms that are more favorable for you. A Rate and Term Refinance includes the current mortgage balance plus the cost to refinance.

FHA Streamline

Enables the homeowners with FHA loans to do a rate/term refinance with a few special benefits. To begin with, you may be able to refinance into a lower rate even if you owe more on your home than it’s worth.

Another benefit of FHA Streamlines is reduced documentation. Every situation is different, but because you already have an existing FHA loan, you may qualify for less documentation in each of the following areas:

 

Reduced appraisal requirements

Limited employment verification

Less documentation for income and assets

 

 

 

 

FHA Loan Checklist

When you're applying for an FHA loan the following list of documents will help expedite the process. We can help you understand any part of the FHA loan process so don't hesitate to contact us with any questions.

Employment Info

Savings Info

Personal Info

FHA Loan Common Questions

Check out our list of common questions related to FHA mortgages. Check out our list of common questions related to FHA mortgages.

What is the FHA?

What makes a FHA insured mortgage beneficial?

Where can I find FHA forms and other literature?

What is the FHA loan limit in my area?

Can I pay an FHA loan off early?

Can a FHA insured loan help me lower energy costs?

Is there a FHA program to help me refinance my loan?

Can I refinance a fixed rate FHA loan?

What is the recommended debt-to-income ratio for FHA loans?

Are FHA loans assumable?

Will I have to pay mortgage insurance with an FHA loan?

Can I get a "fixer-upper" of a home with a FHA mortgage?

FHA Qualifications

In order to qualify for an FHA loan, a borrower typically needs to meet this criteria:

FHA Streamline Refinance

What Is An FHA Streamline Refinance?

If you already have an FHA mortgage then you might qualify for a FHA Streamline Refinance. An FHA Streamline Refinance is a great way for a borrower with an existing FHA backed mortgage to reduce their interest rate, reduce their payment or possibly both.

Here are some really cool facts about an FHA Streamline Refinance:

The Refinance Must Have A "Purpose"

Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance or in other words a legitimate reason for refinancing. For Example:

Your Loan Balance May Not Increase To Cover The New Loan Costs

The FHA prohibits increasing a Streamline Refinance's loan balance to cover associated loan charges. The new loan balance may increase but only by the cost of the Upfront Mortgage Insurance Premium. All other costs -- origination charges, title charges, escrow -- must either be paid by the borrower as cash at closing, or credited by the loan officer in full.

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.

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