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FHA Loan Common Questions

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

What is the FHA?

  • FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans purchase homes.

What makes a FHA insured mortgage beneficial?

  • An FHA insured mortgage is easier to qualify for and more affordable in many cases than a Conventional loan.

Where can I find FHA forms and other literature?

What is the FHA loan limit in my area?

  • The loan limit across the country is different. Click here to see limits in your area.

Can I pay an FHA loan off early?

  • Yes, however be sure to check the "pre-payment" section of your loan contract before signing.

Can an FHA insured loan help me lower energy costs?

  • Yes, through the Energy Efficient Mortgage Program, you may be able to finance 100% of the cost of making your home more energy efficient. Contact us to see how.

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

  • Yes, the recently created FHASecure is one of the ways that we can help you refinance your current home loan. Contact us now to see what we can do for you.

Can I refinance a fixed rate FHA loan?

  • Yes. Talk with one of our professionals today to see if refinancing makes sense for you.

What are the maximum debt-to-income ratios for an FHA loan?

  • The maximum debt-to-income ratio for an FHA loan depends on several factors. Most FHA loans are approved through an "automated underwriting system" using an algorithm developed by FHA called Total Scorecard. This algorithm currently approves loans with total debt-to-income ratios as high as 55%. Often times though the highest ratio it will approve is 45%. In "manual underwriting" cases where automated underwriting does not issue an approval, the maximum ratios are normally 31% for the "housing expense ratio" and 43% for the total debt-to-income ratio.

Are FHA loans assumable?

  • You may be able to assume an existing FHA loan or allow a qualifying buyer to assume yours. Special conditions apply.

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

  • Yes, in fact FHA mortgages often require you to carry mortgage insurance for longer than most conventional loans.

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

  • Yes, however you might be required to fix certain problems in the home before you can get the full loan. Speak with us today for details on this.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.