Sunday, August 25, 2013

FHA Loan Basics

FHA Loan programs are government loans that most people can qualify  for. I’m Nikitas Kouimanis and I am your Manhattan, Brooklyn, and Long Island FHA Loan expert. Purchasing a home with an FHA Loan has many advantages over conventional loans. Also if you've purchased a home with an FHA Loan, there are also some great FHA refinance options that can help you take advantage of record low rates. I will break down the basics of what options are available to you with an FHA Loan.

Owning a home doesn't have to be as hard as it seems. With down payments of 20% for conventional loans, it can be very hard. If high down payments and difficult financial requirements have stopped you before, then you need to take a look at an FHA Loan. The main advantage of an FHA Loan is that you can own a home with a 3.5% down payment. Besides the lower down payment the credit requirements are also lower than conventional loans and the closing cost are lower as well. There is also no private mortgage insurance, which makes your monthly payments lower. Loan limits to purchase a home in Manhattan, Brooklyn, and Long Island are currently $729,750, the highest possible limit you'll find anywhere in the country.

If you are a 1st time home buyer the FHA is a great loan for you. Why pay rent and pay off your landlord’s mortgage, when you can own your own home and make those monthly payments to build up your own equity? Unlike other easy to qualify for government loans like the USDA loan, which not available in our area, and the VA loan which is only for Veterans. The FHA Loan program is something that anyone can use, and can be used anywhere in Manhattan, Brooklyn, and Long Island.

I look forward to working with you and showing you that owning a home doesn't have be impossible, not when there is a program like the FHA loan that makes it easier. Use my free Purchase Assistant to see how much you qualify for.

If you’ve purchase a home with a FHA loan and haven't looked into refinancing it, you could be wasting thousands of dollars each year. Interest rates are currently the lowest they've been in decades. FHA refinance programs make it very easy to refinance. I can show you without any commitment how much you could be saving. There are two FHA refinance products, the FHA Streamline refinance and the FHA Cash-out.

To use a FHA Streamline refinance you needed to have purchased your home with a FHA loan. It’s considered streamlined because it lets you move down to a lower interest rate on your current home loan quickly and usually without an appraisal. It also has less paperwork which means there is less work for me, so you pay less. The Streamline is designed to lower your monthly mortgage payments by going to a lower rate, not to receive any cash back. If you are looking to spend less money each month this is the program for you. Rates are at levels not seen in decades and probably won't stay this low much longer. If you haven’t thought of about refinancing, let me show you how much you could save. You could be pleasantly surprised.

With an FHA Cash-Out refinance it lets you pull cash out of your home. If you need to pay off debts, remodel your home or just have some extra spending cash this is the program for you. To get the most cash out of your home it is important to build up as much equity as you can. There are more qualifications requirements then a Streamline, like stricter income and employment verifications, credit checks among others. While rates are at record lows, now is the time to see if you can pull some cash out of your home.

If you want to see how much you could save with a FHA Streamline or how much cash you could get with a FHA Cash-out please use our Refinance Advisor for a free analysis.