FHA mortgage loans are
given to those who meet the FHA loan
requirements and who can afford the monthly
payments and the cash investment. This is
primarily for those who are intend to use
the property as the primary residence. The
FHA loan limits vary throughout the country.
The FHA loan limit can range from $115,200
to even $208,800. The average prices for
homes in the area and the conforming loan
limits play a role in the FHA loan limits.
The FHA 203(b) loan is the most commonly
-availed FHA rehab loan program. This allows
low down payment and flexible qualifying
guidelines. The 203(k) loan of the FHA
program allows a borrower to finance the
purchase and rehabilitation of a home
through the same mortgage. A portion of the
FHA home loan is used to pay off the
existing mortgage whereas the remainder is
placed in escrow account until the
rehabilitation is completed.
Other than the obvious advantage of a lower
down payment for an FHA mortgage loan, there
are other benefits that can accrue from
availing an FHA home loan. There is more
flexibility in the underwriting standards
for FHA loans. Gift funds can be used for
down payment and closing costs. FHA's
refinance schemes allow you to lower your
payments without incurring additional costs.
The FHA ARM offers advantageous features.
FHA loan requirements are similar to the
interest rates on conventional loans for the
same term. The mortgage insurance premiums
may vary.
