Introducing FHA Mortgage Loans

The word is out! FHA mortgage loans! Discover how homeowners across America are benefiting. You could be of them too.

When it comes to low down payments, the FHA loan program outshines its competition. Let's face it. Trusted low down payment programs are not in abundance. But thanks to FHA who has come to the rescue of American homeowners since the Great Depression, low down payment options are still available.

Breaking News: Reduced FHA Annual Mortgage Insurance

Effective January 26, 2015*: HUD announces a reduction in annual mortgage insurance to entice more first time home buyers back into the real estate market. The average reduction is projected at $900 a year. This is a huge savings!

There are two FHA mortgage insurance premiums. Only the annual mortgage insurance premium (MIP) has been decreased. This annual premium is split into 12 equal parts and paid monthly.

Annual MI: Loan Terms Greater Than 15 Years

For base loan amounts of $625,500 or less, the annual mortgage insurance premium is...

  • .85% for borrowers with down payments less than 5%.
  • .80% for borrowers with down payments equal to or greater than 5%.

For base loan amounts above $625,500, the annual mortgage insurance premium is...

  • 1.05% for borrowers with down payments less than 5%.
  • 1.00% for borrowers with down payments equal to or greater than 5%.

Annual MI: Loan Terms 15 Years Years or Less

For base loan amounts of $625,500 or less, the annual mortgage insurance premium is...

  • .70% for borrowers with down payments less than 10%.
  • .45% for borrowers with down payments equal to or greater than 10%.

For base loan amounts above $625,500, the annual mortgage insurance premium is...

  • .95% for borrowers with down payments less than 10%.
  • .70% for borrowers with down payments less than 22%.
  • .45% for borrowers with down payments equal to or greater than 22%.

*For new FHA cases assigned on or after January 26, 2015.

Unchanged: Upfront Mortgage Insurance Premiums (UFMIP)

UFMIP is the second FHA mortgage insurance premium. Generally financed into the mortgage, it is equal to 1.75% of the loan.

When Can FHA MIP Be Cancelled

There are limited ways for homeowners to get rid of the annual mortgage insurance premium (paid monthly). Go to How Soon Can My FHA Mortgage Insurance Be Cancelled for more help.

FHA Resource Center

FHA guidelines have changed in the past and will change again in the future. For up-to-date information, anyone can call the FHA Resource Center at 800-225-5342.

FHA Loan Limits On The Move

For many years, in spite of benefits to FHA low down payment loans, many homeowners could not participate because of FHA restrictions to the size of mortgage loans. Rising home values across the nation made FHA mortgage loans obsolete.

The good news is FHA loan limits increase from time to time, keeping low down payment programs available to thousands of homeowners.

Consider FHA Benefits

  • Competitive FHA mortgage rates
  • Small down payments around 3% *
  • Home buying or refinancing okay
  • Friendly qualifying criteria
  • Less closing costs
  • No income restrictions
  • Generous FHA loan limits
  • Stable 30 and 15 year fixed rate mortgage

* Downpayment percentages are estimates so consult your FHA mortgage originator for current requirements.

US Government Offers Incentives To Homeowners

To find out how the US Government is offering incentives for choosing FHA home loans, visit FHA loan limits.

Ask Kate More About FHA Loan Requirements

What if you could ask a real estate and mortgage insider anything you wanted about FHA loan requirements? Now you can!

Ask Kate is specifically designed to answer your questions and create dialog regarding real estate and mortgage financing.

You'll also find a wealth of information at Kate's Best Mortgage Rate Blog packed with tips, interest rate updates and a fresh approach to the world of homeownership.

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