Our Bloomington-Normal office does a TON of FHA loans. Actually, in the U.S., no mortgage lender does more FHA Loans than we do, but what exactly are we talking about here?
An FHA (Federal Housing Administration) Loan is actually a home mortgage loan that’s enforced by the Federal Housing Administration. They come from a federally assisted program that helps borrowers to move into a home, even if they can only put down a small down payment. All that’s required to purchase a home as of right now is a 3.5% down payment. The FHA program goes back to the 1920’s, and the Great Depression. It was created to both give banks insurance and help both current owners and new buyers, while the total amounts of foreclosures and loan defaults were climbing. The FHA Loan operates now in a capacity to help buyers that can’t afford a large down payment, or can’t qualify for private mortgage insurance (PMI). Boiled down, it’s an insurance policy that guarantees the loan, taking the pressure off of the lender, and opening the lender up to make more loans.
At The Home Loan Expert, we use FHA for refinancing home mortgage loans as well. Half of the re-fi is now done through FHA mortgage loans. FHA Loan borrowers can get up to 97.5 percent of the value of the home, instead of a maximum of 90-95% for a conventional loan. FHA rates are also lower than traditional loans. It’s the same rate depending on credit score or amount or percent. A conventional loan program uses loan adjusters to determine the rates, changing the percentages. The Home Loan Expert actually underwrites FHA home mortgage loans ourselves, because we are a Direct Endorsed FHA Lender. A majority of mortgage companies, particularly those that lost their FHA endorsement status during the market correction crash when they weren’t being used extensively, have issues becoming an approved FHA lender again, while we maintained our FHA status so that we could continue to underwrite and close FHA loans.
Our process for home loan approval allows us to quickly process and approve FHA loans for families, giving them a way to move into their dream home and establish their lives. Since 2002 we have closed over $500 million in FHA loans.
Whether you’re looking to purchase a new home or refinance one in Bloomington-Normal and the surrounding areas, call:
The Home Loan Expert