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Purchase Calculators  |  Refinance Calculators  | Conventional Conforming Loans  |  FHA  |  VA

FHA Mortgage

An FHA loan is a home mortgage that allows for a purchase or refinance with a low down payment and is insured by the Federal Housing Administration. FHA’s mortgage insurance programs help all families become homeowners by lowering the cost of financing allowing for low down payment options.  FHA loan limits vary by zip code. 

FHA loans have a strong program for refinancing your home, please contact your On Q Financial Mortgage Consultant today to find out about the 3.5% on numerous types of properties.

Some of the benefits include:

Down payment requirements can be low.

In contrast to conventional mortgage products, which frequently require down payments of 5% to 20% depending on your credit history, FHA makes it possible to reduce your down payment to as little as 3.5% on numerous type of properties. These Mortgages are insured by FHA which allows borrowers to finance approximately 96.5 percent of the value of their home purchase through their mortgage in many cases.

Borrowers can make the down payment with a gift.

The down payment can be 100 percent gift funds from a family member or in some cases a charitable organization.. This is one of the key benefits to the FHA program. Verification of the source of gift money is required. 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.

FHA Streamline Refinances

FHA has permitted streamline refinances on insured mortgages since the early 1980s. “Streamline” refers only to the amount of documentation and underwriting that needs to be performed by the mortgage company.

The basic requirements of a streamline refinance are:

  • The mortgage to be refinanced must already be FHA-insured.
  • The mortgage to be refinanced should be current (not delinquent).
  • The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.