FHA Mortgage Loan Guidelines

FHA Mortgage Loans

What is an FHA Mortgage Loan?

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). An FHA loan is typically one of the easiest types of mortgage loans to qualify for because you can have less-than-perfect credit and the required down payment (3.5 percent) is lower than conventional loans.

FHA Mortgage Loan Qualifications

The FHA imposes certain loan guidelines that FHA-approved lenders and potential borrowers must abide by. In order for an FHA-approved lender, such as Inlanta Mortgage, to approve a borrower for an FHA mortgage loan the borrower must meet the following criteria:

  • Must have steady employment history or a minimum of two years working for the same employer
  • Must have valid social security number
  • Must be using purchased property as primary residence
  • The property mush be appraised by an FHA-approved appraiser

Other qualifying criteria will apply. For more information, find a licensed Inlanta Mortgage loan officer near you using our branch locator. Inlanta Mortgage loan officers can securely accept mortgage applications online. If aren’t sure who to apply with, feel free to apply here and we will redirect your application to a loan officer licensed to originate in your area.

FHA Mortgage Insurance – MIP & UFMIP

Since the guidelines for FHA mortgage loans are less strict than conventional mortgage loans and the loan offers a lower down payment option, there is a higher risk of associated with FHA loans. As a result of this increased risk, the FHA requires borrowers to pay mortgage insurance premiums. There are two kinds of mortgage insurance premiums associated with FHA mortgage loans. The first premium, upfront mortgage insurance premium (UFMIP) is one that is paid upfront. In actuality, the UFMIP can be paid in full upfront or financed into the mortgage. The second is an annual insurance premium that is billed monthly. The monthly mortgage insurance premium that will be due each month through the life of the loan. For more information on the FHA mortgage insurance premium collection process, visit Hud.gov.

The expense of FHA mortgage insurance premiums is something you should consider when evaluating various loan programs. Discuss all available Inlanta Mortgage loan program options licensed mortgage loan officer. Your loan officer will be able to help you determine which loan program is best for your unique financial situation.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating twenty years in business. Check out our 20th Anniversary Video.

Inlanta Mortgage provides its branches with Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage was recently recognized as one of the Fastest Growing Firms in the Milwaukee-Area, is proud to be named to the Scotsman Guide Top Mortgage Lenders 2012 list and to be among the Top 100 Mortgage Banking Companies in America in 2012.

 

What is Private Mortgage Insurance or PMI?

Mortgage-Insurance

What is Private Mortgage Insurance or PMI?

Private Mortgage Insurance (PMI) is a policy provided by private mortgage insurers to protect lenders against loss if a borrower defaults. The benefit of private mortgage insurance to the borrower is that it allows a borrower to purchase a home without putting down a 20% down payment.

PMI should not be mistaken for MIP, or Mortgage Insurance Premiums, purchased from the government for FHA mortgage loans.

What’s the Difference Between MIP & PMI?

Although the concept of insurance protection is similar, there are distinct differences between private mortgage insurance (PMI) and FHA mortgage insurance premiums (MIP) that should be considered when deciding which loan program suits your financial needs.

PMI is typically is available in a variety of premium plan structures and offers payment options that can usually be tailored to the borrower’s needs. There are a number of private mortgage insurance providers and each structure their offerings a bit differently.

MIP is the government-administered mortgage insurance program that has certain restrictions and has undergone a number of changes recently.

Major Differences Between PMI & MIP

Major differences between these insurance programs include:

  • Only a monthly premium is required with PMI while MIP requires both an upfront MIP (UFMIP) and a monthly premium.
  • PMI can be canceled after a stated LTV is achieved and favorable payment history has been established, while MIP is paid for the life of the loan.

For More Information

Contact an Inlanta Mortgage loan professional to discuss your options and ensure that you select the program that is right for you! Click here to find a licensed mortgage loan professional near you.

About Inlanta Mortgage

Inlanta Mortgage is proudly celebrating twenty years in business. Check out our 20th Anniversary Video.

Inlanta Mortgage provides its branches with Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Fannie Mae, FHA/VA, FHA 203K and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage was recently recognized as one of the Fastest Growing Firms in the Milwaukee-Area, is proud to be named to the Scotsman Guide Top Mortgage Lenders 2012 list and to be among the Top 100 Mortgage Banking Companies in America in 2012.