Posted 06/12/2015

refinance

Are you currently in an FHA Home Loan?

  • Do you want to save money with a lower rate and payment on your FHA loan – even if you owe more than your home is worth?
  • Would you like a mortgage with no appraisal required, lower credit requirements, and limited documentation to help you qualify?

If you said yes to these questions, then you will want to look at an FHA Streamline Refinance program. Tap into your home’s equity, obtain a lower interest rate, extend or shorten the loan term or achieve other goals you may have. While there are different options for refinancing, many are taking advantage of the FHA Streamline Refinance program.

What Is the Streamline Refinance Program?

This is a unique program that is ideal for many who have an existing FHA loan. There is no appraisal requirement. Instead, the FHA will allow you to use your original purchase price as the current value regardless of what your home is worth today. Many other programs will offer a certain loan amount based on the current value of the home. When the value has declined since the purchase, it may not be possible to refinance with other loan programs. However, this program is well-suited for such situations, and this is regardless of the amount your home has declined in value.

The Loan Terms

While one of the key features relates to the fact that the FHA Streamline program does not require an appraisal, there are other selling points. This is a low closing cost option that can close quickly. In addition, you can choose from a fixed or adjustable rate, and the interest rates are very competitive. There are also 15 and 30-year terms available. Plus, the loan program does not have a prepayment penalty associated with it.

Many borrowers also appreciate the fact that the underwriting process is streamlined, and there is minimal documentation required. In fact, there is not an income or employment verification in place, so you will not have to worry about providing all of the paperwork that would need to provide for other loan programs.

Regardless of what your current goals are for refinancing your existing mortgage, it is smart to learn more about the FHA Streamline Mortgage program with one of our Mortgage Experts at Mortgages Unlimited. With how easy it is to qualify and how attractive the loan terms are, this may be the loan program that you have been searching for.

Mortgages Unlimited | 763-416-2600 | www.muihomeloans.com

Posted 05/28/2015

What is an FHA loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.

fha

Is an FHA Loans the right loan for you?

The FHA allows buyers to get a mortgage with a down payment as low as 3.5 percent vs. a conventional loan with a minimum of 5% down.  For many, that is a significant difference and many home buyers flocked to an FHA loan.  However, since the beginning of 2008, the FHA raised its mortgage insurance premiums (MIP) 6 times, making borrowers think twice about choosing an FHA loan.

Prior to January 2008, FHA MIP was .50% annually of the average outstanding balance of a loan creeping all the way up to 1.35% over the years.  In January of 2015, FHA lowered its annual mortgage insurance premium on all new, 30 year loans by 50 basis points. Here is what that looks like:

April 2013  – (Annual Mortgage Insurance Premium (MIP) 1.35%)

$200,000 price of home with MIP of $215.23 a month

January 2015 – (Annual MIP .85%)

$200,000 price of home with MIP of $135.51 monthly

What else should I know about an FHA loan?

There are two mortgage insurance premiums required on all FHA loans: An upfront premium and an annual premium.

Currently, the upfront premium is 1.75 percent of the loan amount and is due at the time of closing.  Borrowers have the option to roll this into the amount of the loan.

The second is called the annual premium, paid monthly.  This amount will depend on the amount of the loan.

Borrowers can use their own savings to make the down payment,  a cash gift from a family member or a grant from a state or local government down payment assistance program.

Borrowers can also seek an FHA loan called a 203(k) loan. This loan is designed to help pay for repairs or improvements to a home.  The loan amount is based on what the projected value of the home is after the repairs, not the current value.  This is a great option for when a borrower finds a home they like but it needs some tweaks to get it to their liking.

Since the FHA lowered the MIP to .85%, an FHA loan has once again become a viable option for borrowers.

Find out if you qualify for an FHA loan. Call one of our Mortgage Consultants for a free consultation at 763-416-2600.

Posted 06/30/2013

FHA Loans have always been a great option for homebuyers, and will continue to be great, hopefully, for years to come. However there are some changes that are taking place in the program. Chris Fredin, CEO of MUI, was interviewed by KARE11 recently on the changes that are kicking in today. See the video clip at:

http://www.kare11.com/news/news_article.aspx?storyid=1027522

“Traditionally an FHA loan with less than 10 percent down would have to pay a mortgage insurance premium until you reached 22 percent equity. After that is reached the insurance premium would go away. With these changes, the Mortgage Insurance premium will now remain effective for the life of the loan with FHA” according to the article by KARE11.

Chris goes on to explain, “FHA is still going to be a good mortgage. It just seems like more people are getting cautious about the housing market but it’s strong and as the economy improves people will be able to buy and sell houses easier.”

If you would like more information, please contact Mortgages Unlimited. Visit our website at www.muihomeloans.com or give us a call at 763-416-2600

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