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FHA Loans
Home FHA Loans

FHA Loans

FHA loans are among the most popular programs, especially for first time home buyers and special situation loans. MainStream is an approved FHA lender. We encourage you to review and click on the informative documents below for helpful guidance.

FHA Loans Center Topics

Single Family Mortgage Insurance FHA Financing Benefits

FHA Mortgage Insurance (MIP) Down Payments Gift Plan

SINGLE FAMILY MORTGAGE INSURANCE FHA's mortgage insurance programs an important tool through which the Federal Government expands homeownership opportunities by lowering some of the costs of mortgage loans for first-time homebuyers and other borrowers who would not otherwise qualify for conventional loans, as well as for those who live in underserved areas where mortgages may be harder to get.

FHA FINANCING BENEFITS

FHA is more forgiving on credit, making it easier to qualify for a loan.
- If you have previous credit problems without a bankruptcy or foreclosure, FHA will consider you for a loan with 1 year clean credit
- 2 years from a bankruptcy and 3 years from a foreclosure with 3-4 sources of re-established credit. Examples: credit cards, loans as well as alternative sources such as utilities, cable, telephone, insurance, etc.
Down payment requirements can be low. Single-family mortgages insured by FHA make it possible to reduce down payments to as little as 3%.
100% of funds needed for down payment, closing costs or pre-paids may be in the form of a gift from family members or non-profit agencies.
Many closing costs can be financed. This program allows the borrower to finance many of these charges, reducing the up-front cost of buying a home. FHA mortgage insurance is not free: borrowers pay an up-front insurance premium (which may be financed) at the time of purchase, as well as monthly premiums that are not financed, but instead are added to the regular mortgage payment.
Some fees are limited. FHA rules impose limits on some of the fees that companies may charge in making a loan. For example, the loan origination fee charged may not exceed 1% of the mortgage.
HUD sets limits on the amount that may be insured. The amount that FHA will lend varies by state and county. You will need to check with your mortgage lender on limits in your area.

FHA MORTGAGE INSURANCE (MIP) FHA requires a mortgage insurance premium (MIP) for its home buying programs. An up-front premium of 1.5% of the loan amount is paid at closing and often financed into the mortgage. In addition, there is an MIP amount charged monthly. Condos* do not require up front MIP - only monthly MIP.

*Condos must be FHA approved

DOWN PAYMENT GIFTS PLAN The down payment can be 100% gift funds. This is one of the key benefits to the FHA program. Verification of the source of gift money is not required. However, it is necessary that the gift funds be deposited in the borrower's bank or savings account, or in an escrow account, prior to underwriting approval. Proof of deposit is required.

Click here to receive your free eBook, The Mortgage Handbook, to use as a guide as you begin and work through your mortgage application process, including checklists, worksheets and tips on how to speed up your approval.

Email us or call us at (877) 355-2152 for rates, free qualifications, general information, or to apply!


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