Is a FHA Loan Right For You?

After posting excerpts from a letter from a member of the FHA (Fair Housing Administration), I received quite a few e-mails asking questions about what exactly is a FHA loan. So, here are a couple of links that will help you understand if an FHA loan is right for you.
(info provided is for the state of California residents)

Here's some links to some of the FHA insured mortgage programs:

Section 203b Insured Mortgage

Section 203h Insured Mortgage for Disaster Victims

Section 255 Home Equity Conversion Mortgage (HECM)

Section 203k Rehabilitation Mortgage

Energy-Efficient Mortgage Program (EEM)

Adjustable rate mortgages

Section 248 Indian Reservations and Other Restricted Lands

Title I Home Improvements

One of the more common FHA Loans

203(b) Mortgage Insurance

What is the purpose of this program?

To provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.

What are the eligibility requirements?

• The borrower must meet standard FHA credit qualifications.
• The borrower is eligible for approximately 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
• Eligible properties are one-to-four unit structures.

For More Information
Contact FHA approved lenders in your area.