This assortment of sub-loan programs was established in 1934 by the Federal Housing Administration, which is a wing of the United States Department of Housing and Urban Development.
FHA-insured loans are great assets for borrowers seeking property funding from lenders, who are covered by a mortgage insurance requirement. Subsequently, protection is provided to lenders for any potential losses they’ll incur if a borrower defaults on their mortgage.
FHA loans are popular for many reasons, including their lenient credit requirements. They also limit borrowers’ down-payments and closing costs.
Borrowers who have not owned a home within the past three years qualify as “first-time home-buyers”, and typically are only required to provide 3.5% of the price of a property as a down payment.
Yet borrowers do need to be aware of loan limits that are applicable to FHA loans. These limits are based on the location of a housing unit, precisely by county. The Credit Works Mortgage Team excels in Connecticut locations such as Brookfield, Danbury and New Milford, which are in Fairfield County and Litchfield County.
Here are the FHA loan limits for both counties:
Featured purchase-oriented FHA loan programs include:
- Fixed-Rate FHA
- Adjustable-Rate (ARM)
- Graduate Repayment Mortgage
- Growing Equity Mortgage
- Energy Efficient Mortgage
- FHA Condominium Loan
Fixed-rate FHA loans are ideal for borrowers who wish to keep their interest rates the same throughout their loan’s term. Many recent college graduates and newlyweds often find this program beneficial, as it is meant for people who wish to buy a home without enough personal funding to do so on their own.
Adjustable-rate mortgages are commonly referred to ARMs. This program was specifically designed for families in the low-to-moderate income range who want to own a home. The interest rate of the mortgage starts off typically lower than a fixed-rate mortgage, and stays flat for a predetermined length of time before beginning to “adjust” accordingly to market conditions.
Some prospective home-buyers expect to see a substantial increase in their annual earnings within the next few years when looking to purchase home. However, the currently are in the low-to-moderate income category. For home the prospective home-buyers who fit this profile, the graduate repayment mortgage is a highly attractive FHA loan program.
The growing equity mortgage features smaller early payments that gradually rise over time. Via the FHA energy efficient mortgage, borrowers are awarded funding to reduce monthly costs toward utility bills, as well as for energy-efficient improvement expenses.
Low-to-moderate income borrowers may also obtain a condominium through the FHA condo loan program. This arrangement also gives financial assistance to those uprooted out of their apartments which are being transformed into condos.
To get started on securing an FHA loan that fits for your needs, call Credit Works Mortgage today at (203) 775-4774 or toll free at (800) 579-5822.