FHA mortgages are commonly known to only be a mortgage program for first time home buyers. This is not the case! FHA is a strong, competitive mortgage program for anyone looking to buy or refinance a primary residence. FHA mortgages offer well rounded benefits to all consumers such as lower closing costs, smaller down payments, easier qualifying guidelines, lower rates and Mortgage Insurance, and can also offer an additional option to borrowers with less than perfect credit!
Besides being a great program for buyers, FHA is also a good option for refinance transactions. In this market especially, FHA offers mortgage refinancing with great rates all the way to a 95% Loan-To-Value, meaning the homeowner only is required to have 5% equity remaining after the refinance. This is important in a market such as the current one where home prices are staying the same or falling – homeowners don’t have the equity position they may have had 2 – 5 years ago. This financing option allows for the opportunity to still refinance if so needed.
If you are looking into taking advantage of this market through purchasing your first home, or refinancing your current one, check out the FHA option. You may be surprised to find it is a great fit for your financial need . . . whether you are a first time home buyer or not!
*For FHA mortgage questions or help, please contact Mary Rich at Apollo Home Mortgage Group at (218) 725-9000.*
