FHA
Discover the great options Metro Mortgage has to help you get the best mortgage possible!
WHY IS METRO MORTGAGE THE BEST CHOICE FOR FHA MORTGAGES?
IS A FHA MORTGAGE YOUR BEST OPTION?
FHA Mortgages are a good option for you if:
- You are buying your first home.
- You need more relaxed underwriting critera. (You know what we mean!)
- You don't have a lot for a down payment.
- You want a low rate! FHA rates are usually the best available!
BASIC FHA MORTGAGE PARAMETERS
- Underwriting is relaxed, compared to Conventional Mortgages.
- You need a score of 640 or higher.
- You need at least 3.5% for down payment. You can take a gift from a parent for the down payment.
- You do not need a lot of money to qualify. You only need to show you have the funds you need to close!
- The seller can pay up to 6% of the sales price towards your closing costs.
FHA MORTGAGE INSURANCE
There is no sugar coating the fact that FHA monthly mortgage insurance has gotten very pricey in recent years. This is why we consider it an option for a first time home buyer, that than the go to option it used to be.
FHA charges MIP (mortgage insurance premium) two ways. When you close, you are charged 1.75% of the starting loan amount. This fee is rolled into your loan balance. The calculator at right is FHA specific, and will illustrate how this works.
FHA also charges a monthly premium. The factor determining how much you pay depends on the loan term, and the amount you have down. If you put at least 5% down, the factor decreases slightly on 30 year terms. But you pay it for the term of the loan, which is a serious negative consideration! 15 year terms have lower factors.
FHA MORTGAGE LOAN DOCUMENTS
We designed this calculator do give you a rough idea of what a FHA Purchase looks like for you with today's rates. You can get our current published rates for FHA loans under "Rates". FHA mortgage pricing varies based on your credit score, and other factors. It's a good idea to contact us for a free rate quote (see below) if you want more precise numbers. We love to hear from you!
FHA Purchase Calculator
Click each label for more information.
Because we have incredibly low FHA rates and fast turn times!
FHA (Federal Housing Authority) loans have been around since the depression, and has put millions of Americans into their first home. FHA is really a government run mortgage insurance program. FHA mortgages meet certain parameters, which are relaxed compared to Conventional mortgages, and the homeowner pays monthly premiums to the Federal Government. If the buyer defaults, the investor is compensated for part of the loss by the FHA.
Although the guidelines have tightened in recent years, FHA mortgages are still a good option, for first time home buyers and people moving up.
In the last five years, FHA mortgage premiums have increased substantially. And worse, you pay the premiums for the term of a 30 year mortgage. Fannie Mae and Freddie Mac have introduced competition to FHA, with lower down payments and similar relaxed guidelines. Surprisingly, FHA mortgages have the best fixed rates available, even if your credit score is below 700!
The best way to find out if FHA is the best option for is depends on several variables. Contact us (see below) and we will find your best option, and present it in a way that makes sense!
Thank you so much for all your help throughout my home buying journey. Since this was my first home purchase, I needed all the help I could get! As a testament to the work you do, everyone I talked to recommended I get in touch with you. There was no doubt I made the right decision. Thanks again for making everything so easy.
T. Brogdon
Next Steps
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