When lenders refer to the first time homebuyers loan, they are commonly referring to FHA insured financing. It’s a misconception that FHA insured financing is exclusively for first time home buyers. You may even be able to utilize FHA insured financing in the North Las Vegas, Henderson, Summerlin and surrounding areas simultaneously with selling your current home. It may also be possible to finance your home with an FHA insured loan even if you have an existing FHA insured loan on another property. Tiffani Planck does FHA Mortgages in Henderson, Summerlin, North Las Vegas, and the whole state of Nevada. Learn more about FHA Loans and find out if it is right for you!
FHA Loan Advantages
The Federal Housing Administration (FHA) has been insuring mortgage loans in the North Las Vegas, Summerlin, Henderson and surrounding areas since 1937. In fact, the Federal Housing Administration (FHA) which is a part of the Housing of Urban Development (HUD) insures your loan so your lender can offer you:
- Low down payment
- Lower interest rates
- Higher qualifying debt to income ratios
- Lower credit and income requirements
- Higher cash out limits than conventional loans on FHA refinances
- No asset reserves
- Use of gift funds for the down payment
Less-than-perfect credit is ok
The minimum credit score needed for an FHA loan depends on the type of loan you need. For example, to get a mortgage with a down payment as low as 3.5 percent, you would need a credit score of at least 580. If your credit score ranges between 500 and 579, your minimum down payment will be about 10 percent.
Credit scores that are under 500 may be ineligible for FHA loans, but it does not disqualify you entirely. FHA mortgages have special conditions, such as “nontraditional credit history or insufficient credit,” that allows for applicants to still qualify if they meet certain requirements.
Call our office to learn more about these special conditions for FHA qualification and a personalized down-payment quote.
Minimum down payment can be as low as 3.5 percent
For many borrowers, the required down payment can be as little as 3.5 percent of the purchase price of the home. What’s more, you can also use your savings to make the down payment! Other allowed sources of cash for the down payment include gifted monies from a family member or even a grant from a down-payment assistance program.
Your closing costs may be covered
The FHA permits home sellers, builders, and even lenders to pay some of your closing costs. These costs can include the appraisal, your credit report, or title expenses. The interest rate on the mortgage may be higher if the lender pays the closing costs, however, the additional cost may still be advantageous in the long run.
Our office will assist you in determining if including the closing costs would benefit you before.
Mortgage professionals must be FHA-approved
This is fact often creates confusion: FHA is not the lender, but rather the insurer. To get an FHA loan, borrowers apply through an FHA-approved mortgage professional or lender, and not directly through FHA.
Also, interest rates and fees may still vary (even on the same FHA loan), which allows us to remain competitive by offering you the best overall deal.
Borrowing for repairs is allowed
There’s a special loan product offered by the FHA that lets you borrow extra cash to make repairs to your home. The 203(k) has the benefit that the loan amount isn’t based on the current appraised value of the home, but rather on the projected value after the repairs are done. Also known as a “streamlined” 203(k), it lets you finance up to $35,000 for nonstructural repairs, for projects such as painting and replacing cabinets.
Financial hardship relief
FHA insurance should not be considered an easy out of paying the monthly mortgage, but there are special circumstances that can allow for temporary relief. When you have an FHA-insured loan, and you experience a serious financial hardship or are struggling to make payments, you may be eligible for a temporary period of forbearance, a modification on the loan that would lower the interest rate or even an extended payback period. Call our office to learn more.
FHA Loans were almost obsolete for a time
During the height of the housing market in North Las Vegas and its surrounding areas, FHA insured loans almost became obsolete! This was due to the maximum base loan limit imposed by the Federal Housing Administration. The property values had risen so much that unless a borrower was able to pay the principle down to meet the maximum base loan limit, another type of financing had to be obtained. After the crash of the housing market, home values plummeted and FHA insured financing was once again a smart and secure home financing option. Since then, there have been many changes in the loan guidelines. FHA is able to offer the low rates and reduced monthly mortgage insurance on homes with a base loan limit of up to $287,500. This equates to a sales price of $297,927 or less while only requiring the minimum down payment of 3.5%. You may purchase a home for a sales price that exceeds $297,927 though you will have to put additional down payment funds toward the principle.
Nevada FHA Mortgage Rates
Have your down payment or gift funds, but short on the money for closing costs? No problem! Tiffani Planck and Vision Home Mortgage offer great low rates that you choose and you may receive up to 2.75% of the loan amount paid to you from the bank at the close of escrow to be used toward covering the costs of purchasing or refinancing your home. Need to close quickly? No problem! Tiffani can close in 30 days or less in most scenarios. So you can be in your new home faster and with less hassle. Residents of North Las Vegas and its surrounding areas are invited to come in today for your no hassle, no obligation consultation to find out how an FHA insured loan can move you into your dream home or reduce your monthly payment on your existing one fast!
Working with a Qualified FHA Mortgage Lender
Tiffani Planck and Vision Home Mortgage values you, your family and your time and we appreciate and look forward to the opportunity to earn your business. Contact Tiffani today and she will be happy to answer your questions or schedule a time around you to sit down and discuss all of your home financing options. Tiffani services FHA Loans in Summerlin, Henderson, North Las Vegas as well as the whole state of Nevada. You can also learn more information here.