FHA Mortgage Lenders
FHA Mortgage Loan Company provides all types of government home mortgages. We specialize in low rate mortgage refinancing with the FHA guarantee for no pre-payment penalties. We are a HUD approved lender for FHA refinancing and new home financing in all 50 states.
203-K: this FHA loan product enables new home-buyers to finance both the purchase of a house and the cost of its rehabilitation with a single FHA mortgage.
203-b: This FHA mortgage is also known as the cash out refinance. Borrower can refinance their home and get cash back up to 95% loan-to-value. If your credit scores are under 580 fico and you have had trouble making your mortgage payment on time, then HUD may limit you to 85% if you want to receive money back in the refinance.
Debt-to-Income Ratio: a comparison or ratio of gross income to housing and non-housing expenses; With the FHA, the mortgage payment should is usually safe for approval at 29% of monthly gross income (not including taxes) and the home loan payment combined with non-housing expenses should not exceed 41% of income.
Fair Housing Act: a law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.
FHA: Federal Housing Administration was established in 1934 to preserve homeownership opportunities for all Americans while assisting new home-buyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults; this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages.
Good Faith Estimate: an estimate of all lending fees due at closing including pre-paid and escrow items as well as lender charges; must be given to the borrower within three days after submission of a loan application.
HUD: the U.S. Department of Housing and Urban Development; established in 1965, HUD works to create a decent home and suitable living environment for all Americans; it does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws.
Jumbo Loan: or non-conforming loan, is a loan that exceeds Fannie Mae's and Freddie Mac's loan limits. Freddie Mac and Fannie Mae loans are referred to as conforming loans.
Loan to Value (LTV) Ratio: a percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.
Mortgage Insurance Premium (MIP): A monthly payment usually included in the mortgage payment. It is paid by a borrower for mortgage insurance.
Mortgage Interest Rate: the amount of interest charged on a monthly loan payment, expressed as a percentage.
Rate Lock: a commitment by a FHA lender to a loan applicant guaranteeing a specific mortgage rate over a period of time at a set cost.
Refinancing: paying off one mortgage by obtaining a new loan; refinance loans are is recommended for reduced interest rates and lower monthly payments.
Reverse Mortgage: the reverse mortgage is used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. A lending institution such as a mortgage lender, bank, credit union or savings and loan association funds the FHA insured loan, commonly known as HECM.
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