05 Jun FHA Loans: The Most Popular Mortgage in the Nation
Easier qualifying for your clients
FHA loans are popular with many buyers – especially first-time homebuyers – because they don’t require a large down payment.
- Your clients may qualify with a down payment equal to just 3.5% of a property’s purchase price.
- Closing costs for FHA loans are generally lower than for other types of mortgages.
- FHA loans do not require high FICO credit scores. Clients may even substitute a nontraditional credit history to qualify. This usually consists of an on-time history of rent, loan and utility payments.
A history of the FHA
Before FHA loans became available, home ownership was out of reach for many people. Buying a home usually required a 50% down payment, and the remaining 50% of the home’s price was expected to be repaid within one to five years.
- The National Housing Act of 1934 created the Federal Housing Administration (FHA) to help stimulate new home construction. It also regulated the rates of interest and terms of the mortgages it insured.
- The FHA also set up criteria for property appraisals and provided loan insurance to lenders, reducing their risks.
- Since 1934, the FHA and HUD have insured over 34 million home mortgages.
- The FHA does not offer insurance to the homebuyer. Instead, lenders receive partial insurance against possible loan default.
Introducing Caliber’s FHA products
We offer a wide range of FHA loans with fixed and adjustable rates (ARMs). Other buyer-friendly features and options include:
- A variety of eligible property types. Singlefamily homes, condominiums, new construction, 3-4 unit properties, manufactured homes and Planned Unit Developments (PUDs) may qualify.
- Properties offered as a “short sale” may qualify for FHA fixed-rate financing.
Introducing Caliber’s FHA products
Additional buyer-friendly features and options include:
- Selling homes in traditionally high-cost areas? Caliber offers FHA loans in High Balance* amounts.
- FHA 203(k) Streamline and Renovation Rehab loans. These help you sell fixer-upper properties by providing additional funding for financing renovations.
- Energy-efficient mortgages (EEMs) provide additional funds for “green” home improvements. These often help new homeowners keep energy bills low.
* FHA loan limits vary by market. Ask for details of High Balance limits.
Reduced FHA insurance premiums
FHA loans require a borrower to pay two types of insurance: an initial, “up-front” premium, or UPMIP. An annual Mortgage Insurance Premium (MIP) is also due. The MIP is based on the buyer’s Loan to Value (LTV) ratio.
- Recently, the FHA lowered MIP rates by 0.5% for new FHA loans with terms over 15 years.
- Previously this rate was 1.35% – now it is 0.85%
Why choose Caliber for FHA financing
- In addition to a growing array of FHA loan products, your clients will appreciate the personal, friendly guidance offered by their Loan Consultant. Borrowers may contact a Loan Consultant to apply for financing, or apply online 24 hours a day. Caliber is a national lender, registered/approved by the FHA and HUD
- Our Loan Consultants are supported by professional underwriters and support staff who are committed to closing your loans on time
- Mortgage lending is our only business – we’re experts!
- We have the financial support and backing of a national private equity firm
- Our underwriters process all FHA loans in-house with our proprietary, state-of-the-art originations software
Caliber Home Loans Let Us Guide You Home
Contact me today to learn how I can assist your clients with one of life’s biggest decisions.