FHA Loan
WHAT IS AN FHA HOME LOAN?
It means your mortgage is insured by the Federal Housing Administration (FHA). Lenders are much more flexible with FHA loan requirements and because they have some assurance from the government, you will often receive lower interest rates, lower down payment requirements, and less-strict requirements as they relate to your financial criteria, such as your credit score and job history. Though you are required to pay mortgage insurance for this type of loans, the benefits you receive far outweigh the small monthly fee you pay to secure it in the first place. Call Bill Mervin Team to find out more about if this is the right one for you!
WHAT IS THE ADVANTAGE OF FHA HOME LOANS?
Whether you need a reduced down payment, or have not-so-perfect credit, an FHA mortgage loan remains one of the easiest loans to obtain today, benefiting first-time home buyers, as well as those who plan to make substantial repairs and need additional cash set aside for those improvements.
But there are qualifying factors for both the borrower and the home you choose. They require that a FHA-approved appraiser conduct an appraisal and it must meet certain standards of condition.
While a conventional loan typically requires a down payment of 20 percent, the down payment on an FHA qualification can be a low as 3.5 percent, which has been a key to expanding home ownership for decades.
Furthermore, the source of the funds used for a down payment can be (in part or whole) a cash gift from a family member, as well as funds obtained through a grant from a state or local home buyer’s assistance program.
Other loan types often require that the source of funds used for a down payment be exclusively verified.
Closing costs include an appraisal, a credit report, title expenses, and more, and can often be covered by the seller, or the lender themselves. A home seller may, for example, agree to cover all or part of the closing costs as part of the negotiated price. Closing costs can also be included in the loan, although a higher interest rate may apply.
HOME PURCHASE WITH PLANNED IMPROVEMENTS
To encourage revitalization of older neighborhoods or damaged homes, FHA provides two types of loans to help home buyers reserve a portion of loan funds to accomplish non-structural and structural repairs.
A standard 203k loan is provided for properties with structural needs, such as a new roof, room additions, the replacement of plumbing or electrical, as well as a deck, or garage addition. Pools and other ‘luxury’ items are excluded.
The maximum amount under a standard 203k FHA home loan is determined by the lesser of two values:
Appraised value of the home plus costs of repairs, or 110 percent of the estimated value after the repairs/renovations are complete. A more streamlined 203k — think 203k Lite — covers non-structural upgrades, such as paint, new flooring, or upgraded appliances. A streamlined 203k loan allows for $35,000 above the purchase price of the home.
Qualifying properties for a 203k loan include:
- A single-to-four-family home that has been completed for at least a year
- A home that has been torn down if some existing foundation remains
- A home that you wish to move to a new location
- Condos may be eligible, but not co-ops.
Bill Mervin Team has been successfully securing FHA financing for our clients for two decades.
For more information and loan qualifications, speak to one of our experienced team professionals by calling 215-431-7429.
What’s Next?
After you purchase your home and get your loan, you may think that everything is up to you to manage. But with the Bill Mervin team, you will continue to be supported and educated on how to manage your mortgage. The Mortgages Under Management is a program that will guide you after getting the keys to your home. We offer quarterly updates and annual mortgage planning reviews for any changes in your life situations. Our goal is so you have expert guidance at all times, always have a perfect mortgage. Contact Bill Mervin Team today to learn more about the ‘Mortgages under management’ program.
MORTGAGE CALCULATOR
Monthly Mortgage Payments
Buying a home has been the primary way Americans have built wealth for decades. In today’s world, new technology and a multitude of financing options have intersected to create a host of options for buyers – and they’re taking notice. Whether you’re buying your first home or your fifth, we’re here to help.
Conventional loans are ideal for homebuyers with good credit scores. There are a variety of loan programs for with different minimum down payments. We lend both conforming and non-conforming (jumbo) loans.
- Minimum down payment requirement
- Advantages for higher down payments
- Ideal financing for properties commonly restricted by government loans
- Several mortgage insurance options available for loans with less than 20% down, including:
- One-time, upfront insurance
- Monthly mortgage insurance, which could cancel at 78% equity
- Financed mortgage insurance
Lender paid mortgage insurance
FHA Mortgage
An FHA loan is an attractive option for many first-time homebuyers because it allows for lower down payment and easier credit qualifying.
- 3.5% down payment
- Program can be combined with additional down payment assistance programs to further reduce costs
- Monetary gifts from family can be accepted towards down payment
- Seller can pay up to 6% towards closing cost / prepaids
- Fixed or adjustable rates available
- Shorter waiting period after a derogatory credit event
VA Mortgage
Designed for active-duty military, veterans, reservists, and the surviving spouse of a veteran, VA loan programs offer up to 100% financing (based on VA lending limits) for purchase loans, and up to 100% for cash-out refinances.
- 0% down payment (based on VA lending limits and VA eligibility)
- Seller can pay all closing costs and escrows
- Seller can pay debts in veteran’s name to help qualify
- VA funding fee may be financed
- Fixed or adjustable rates available
- No monthly mortgage insurance premiums
Refinancing
Refinancing is the process of getting better terms on your current mortgage by taking out a completely new loan. This new-and-improved mortgage will leverage positive market conditions, and Apex can customize it to your financial goals, helping you to achieve:
- Lower monthly payments
- Shorter loan terms & greater financial stability
- Adjustable to fixed-rate loan conversions
- Consolidated debt
- Home enhancements & renovations
- Removal of Private Mortgage Insurance premiums
- Low Down Payment Programs
- Low Credit Score Programs
- Customized Marketing Support
- Strong Core Values
- 95 Net Promoter Score
- Consistently Close Clear & On-Time
- Firm Established in 1998
- Direct Lender
- Cutting-Edge Technology
- Consumer Connect Digital App
- Wide & Diverse Product Mix
- Heroes First Program
HOME BUYERS GUIDEBOOK
We don’t need an email address. We want a more educated buying experience for our clients.
- What can you expect from the Bill Mervin Team
- What credit factors do banks look at most
- How to best manage your mortgage debt
CERTIFIED MORTGAGE PLANNERS
Areas Served
- Horsham
- Lansdale
- Plymouth Meeting
- Richboro
- Southhampton
- Warminster
- Willow Grove
- Cherry Hill
- Cinnaminson
- Delran
- Maple Shade
- Moorestown
- Mount Laurel
- Voorhees
- Bordentown
- Deptford
- Evesham
- Mt Holly
- Pennsauken
- Sewell
- Sicklerville
