FHA Home Loan Programs In Virginia
Are you buying your first home? An FHA loan could provide exactly what you need. FHA makes competitive
interest rates available to people who normally would not qualify for mortgages at their local bank due to their
tougher lending requirements. Since 1934 the Federal Housing Administration (FHA) has helped over 34 million
people fulfill their dream of home ownership.

Benefits using our company:
1. Lower then normal credit scores accepted: We have lenders that offer FHA Loan Programs to applicants
with credit scores down to the low 500's but your credit must be current for the 12 months leading up to your
application. Exceptions are made on case by case basis and the more compensating factors you possess the better
the chance of an approval regardless of score. With conventional loans the best interest rates are reserved to those
applicants with credit scores over 740.
Examples of compensating factors: down payments larger then the minimum, more then 3 months reserves of your
monthly mortgage payment, assets such as a 401K and a co-signer
2. Low Down payments Requirements: The minimum down payment for an FHA Loan is currently 3.5% of the
purchase price but it can be a gift. This program will allow for the seller to pay up to 3% of your closing costs but not
all property types qualify, only 1-4 unit properties and they must be your primary residence.  
3. No Pre-payment Penalties: This means that you can refinance or sell at any time without any fear of having to
pay any additional fees which can add up to thousands of dollars when you payoff or refinance your loan.
4. Fixed Rate Loans Available: Fixed rate loans provide the same monthly payment over the life of the loan and
homeowners are able to build equity in their property by making the same monthly principal and interest payment.  

Does FHA Have Loan Limits? (click here to see the max loan limits in all 50 states)
Yes, FHA has loan limits and they vary from county to county, state to state.

Does FHA Have A Refinance Program?(click here)
Yes, FHA has multiple programs
1. On Sept 7th We will start accepting applications on the Short Refinance Program allowing for credit
scores down to 500.
2. Streamline Refinance: No cash out allowed but very limited paperwork required to qualify.
3. Traditional FHA Refinance: Allows cash out up to 95% of appraised value.
4. FHA Secure: Lets homeowners facing a rate increase in their adjustable rate mortgage to convert into a
government backed fixed rate loan.
FHA Has A 1st Time Buyers Program
You may be concerned about not having enough money for a down payment. Or are you concerned that you won't
have enough money for move-in expenses? If so a no money down mortgage might be what it takes to get you into
your own home. With these types of loan programs you don't need to make a down payment but you must
employer-assisted housing.

FHA Offers Flexibility
You can chose from a Fixed-Rate mortgage or a Adjustable Rate Mortgage (ARM).  The rates for ADJUSTABLE
RATE LOANS will stay fixed for the first 1,3 or 5 years (you decide) and after the initial term the interest rate will
change annually.

FHA Loans Offer Down Payment Assistance Programs. Whether this your is your first or the third home saving
for a down payment can be a difficult.  Many interested home buyers have not saved enough money to cover the
closing costs and the down payment so the difference is that they rent instead of owning a home.  FHA does allow  
for non-profit and public charity organizations to assist with the down payment for the purchase of a home. Please
contact us so we can explain how these institutions can assist with the down payment and closing costs. The
best part is anyone can qualify for this program. The down payment
assistance program that is provided will be in the form of gift funds. This means that this money
does not have to be repaid and you will build instant equity in the property. The amount that home
buyers can receive is any where form 1% to 5% towards the purchase of the home. Due to new FHA lending
guidelines this program will no longer be available after Oct. 1st. 2008. Although this program may expire your down
payment may still be gifted from a relative to meet the new minimum 3.5% down payment required.

FHA Monthly Mortgage Insurance  will equal 0.25% up to 1.15% of the total loan amount. This amount is about
half of the price of mortgage Insurance on a conventional loan but once the loan balance reaches 78 percent the
mortgage insurance will be removed from the total monthly payment.

Upfront FHA Mortgage Insurance can be financed: in addition to the monthly mortgage insurance FHA charges
a 1 time upfront fee equal to 2.25% of the loan amount. This upfront mortgage insurance premium is deposited into
a national escrow account which was set up by the US Treasury Dept. to help offset any losses due to homeowners
defaulting on their mortgages.
Home Loans with little or no down payment even with less than perfect credit
Since 1995  FHA has placed a great deal of importance on marketing to first-time home buyers and minorities.
Today FHA loans account for more than 21% of all new home mortgages up from the low of 4% just 3 years ago.

The biggest differences between FHA and conventional loans:
- For purchases our FHA lenders require a minimum credit score in the low 500's while conventional lenders require
a score of 640.
- With conventional loans the best interest rates are reserved to those applicants with credit scores over 740.
- FHA loan limits go as high as $726,750 while the conventional loan limit is $417,000. This means you maybe able
borrow more money at a lower rate with a FHA loan.
- On Sept 7th we will start accepting applications on the Short Refinance Program requiring a minimum 500 credit
score. With a conventional lender your minimum score to refinance would be 640 depending on the loan to value.
- FHA loans require a minimum of 3.5% down payment while conventional loans require at least 5% down payment.
- FHA's monthly mortgage insurance payment is about half of the price comparable to a conventional loan.
- With a FHA Loan up to 3% of the closing costs can be paid by seller.
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FHA Loans Soar In Popularity As Loan Limits Are Raised Throughout The United States!
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Yes, FHA has loan limits and they vary from county to county, state to state.