Skip to main content

Getting A Mortgage Loan? Consider An FHA.

Pamela Madore
Pamela Madore Mortgage
806-290-1920

Who Can Qualify For An FHA Mortgage? Consider an FHA.



Don't be fooled.  Many people think that you have to be low-income.  Others think you have to be a first-time homebuyer.  Neither are true.

An FHA loan is a federally insured loan.  FHA stands for Federal Housing Administration.  The loan does not come directly through FHA.  The loan is comes from a lender or bank. 

The connection is through mortgage insurance.  FHA mortgage insurance's acronym is MIP which is mortgage insurance premium.  The MIP is both an upfront premium that is allowed to be financed into the loan.  There is additionally a monthly premium that is part of your escrow account. (taxes, insurance, MIP)

Have questions?

In the event that the borrower defaults on the loan, the mortgage premium serves to offset the loss to the original lender. 

That is a simple version of how the program works.

So.  Who can qualify? 

The orginal lender has to follow FHA guidelines in order to obtain the FHA insurance.  So what are these guidelines?

Let's get rid of the idea that you have to have a low income.  That is simply not true.  You can make as much money as you want.  I suppose Warren Buffet could qualify for an FHA loan if he wanted to. :-)

Second, you can get an FHA loan even if you have had one before.  There are certain exceptions where you can have 2 FHA loans at the same time but as a rule, you need to pay off the first one before getting a second one.

An FHA loan requires a minimum of 3.5% as a down payment.   So, as an example, you would need a down payment of $7000 on a $200,000 house. 

There is a limit to the amount of money you can borrow.  This limit is set by FHA based on county.  The limit in Potter/Randall county is currently at $294,515 for a single family house or mobile home. The purchase price can be any amount.

FHA loans must be owner occupied.  Investors are excluded.  You can also buy a duplex, tri-plex or quadraplex as loan as you live in one unit.  The maxium mortgage amount on these are $377,075, $455,800 and $566,425 respectively.

The house must also meet FHA guidelines.  We often say that it must be safe, sound, and sanitary.  The most common reason that a house won't pass for FHA is on a house built before 1978 and has chipped or peeling paint.  Prior to 1978 some paint had lead in it and FHA find that to be a hazard.

You can also buy a double-wide mobile mobile home.  It has to be retro-fitted with an approved FHA foundation and have not been moved from one location to another.  It must have been new when placed on the site.

FHA credit scores and underwriting guidelines are a little more flexible than a conventional loan so it is very popular.  The interest rates are the same as normal interest rates on any other type of loan. 

Overall, FHA is an excellent choice for a mortgage.  You don't need a lot of money.  Your can get buy with a few credit dings.  And you can be very flexible on the type of property you buy.

For more information or to apply for an FHA loan,  contact me.   I would be happy to go over details of your situation and if for some reason you can't qualify today, I will help you prepare to become qualified.

Call today~!   Have an unusual situation?  Check here.


Pamela Madore
Pamela Madore Mortgage
3955 S. Soncy
Amarillo, TX 79119
806-290-1920
pamelamadoremortgage@gmail.com
NMLS 289635
NMLS 1560825



Popular posts from this blog

Looking For a Fast Paced Challenging Career in Real Esate?

Pamela Madore
Keller Williams Realty
pamelamadore.com


Millennials Searching For Hybrid Jobs Apply Here





No two days are ever the same.  The activities repeat themselves but in a variety of settings and ways with your creativity as a catalyst.    

Welcome to Keller Williams Realty



There really is no such thing as "selling a house".  Instead, it is developing a relationship with a seller or buyer and helping them solve their problem.  And we provide the training and technology to do it.

You will wear many hats and with the unlimited ongoing training at Keller Williams Realty you will continually be moving toward mastery.



How Is Keller Williams Realty's Technology Affecting the Real Estate Industry?

Pamela Madore
Keller Williams Realty
806-290-1920

How Is Keller Williams Realty's Technology Affecting the Real Estate Industry?

At Keller Williams Realty we believe that Technology is the key to capturing the vast amount of buyers and sellers in the market.   And we have turned the way we do business to make sure that happens!

At the moment, we have many things in the "Labs" stage.  That is, they are working and learning and growing.  One of our most innovative current "Labs" item is Kelle.

Kelle is our own AI (artificial intelligence).  It is on its way to becoming one of our most successful tools for our clients.  By simply saying "snap" and then add a neighborhood, Kelle with show all of the statistics for the area.  (Email me and I will "snap" your neighborhood for you).  

We have an upcoming Command Center that will be the hub of all of our current pieces of technology and marketing.  One log-in will take us to any piece of information that b…

Not Everyone Fits In The Traditional Mortgage Mold--Unusual Financing Available

Pamela Madore
Pamela Madore Mortgage
http://pamelamadoremortgage.com
806-290-1920

Not Everyone Fits In The Traditional Mortgage Mold--Unusual Financing Available

Unusual does not mean Guido.  All is means is that lenders are now offering programs that make sense even though they don't fit traditional financing.

Let me explain that just a bit.  


FHA,  VA and Conventional loans all have something to do the with government.  FHA loans are government insured against non-payment.  VA loans are guaranteed by the government for non-payment.  Conventional loans are "packaged" which means that similar loans are put together in big packages and sold in what is called the secondary market to create things like Treasury Bills. Therefore they have to meet certain strict guidelines.  That is really too complicated sometimes to even think about.  So I don't.  These are not for everyone.

These are called Agency Loans.

Now there are a whole set of other loans programs that are not "Agenc…