Maryland FHA Loans
An FHA mortgage loan is a preferred choice by many first time home buyers and repeat home buyers alike. With great refinancing opportunities, low down payment options and less strict credit requirements, you should consider getting a Maryland FHA loan for your next home purchase or refinance.
An FHA loan is a home mortgage insured by the government entity Federal Housing Administration (FHA) against default. What this means is that when you use the FHA to back your loan, the lender is being provided insurance from the enterprise in case you cannot re-pay the loan. This gives lenders the opportunity to provide more loans at less of a risk, as well as take advantage of the less strict FHA loan requirements that conventional loans may not allow.
FHA Loan Requirements in Maryland
In order to meet FHA loan requirements in Maryland, you will need to provide history with you credit, employment, your current debt to income ratio and your current bank account balances. Also there are various requirements based on the type of property and location in order for the loan to be FHA eligible. FHA loan requirements for credit is a minimum of 580 credit score (no credit score may be accepted with first time home buyers), however, many factors are reviewed and history of late payments, judgments, tax-liens owed, previous foreclosure within 3 years and bankruptcy are all means of being disqualified, however there are exceptions made depending on your current circumstances and track record. FHA home loans only cover single and multi-family properties and do have limits on loan amounts, although depending on the area of the home the FHA loan limits may rise and fall.
FHA Loan Advantages
Maryland FHA loans provide many advantages to borrowers that have less than perfect credit, low funds for down-payment and first time homebuyers. Credit requirements are loose compared to the traditional conventional loan, and although a conventional lender may advertise low rates, if you have financial issues in the past, and FHA loan will provide you the opportunity to get approved and streamline refinance in the future for a lower rate. FHA loans also do not require PMI (private mortgage insurance) and may allow some closing costs to be funded into the loan. FHA mortgages also may allow a “non-occupied” co-borrower to be listed on the loan, making it easier for a family member to co-sign on the loan without being required to live in the home. Down-payment requirements are as low as 3.5% which provides those with less cash available to still get a loan if they cannot provide the normal conventional down-payment of 20%. FHA Loans are often a choice for first time home buyers.
How to Get a Maryland FHA Loan
Secured Funding Corporation offers Maryland FHA loans for homebuyers and homeowners. With a full spectrum of FHA mortgage opportunities, getting an FHA loan in Maryland is simple with our dedicated team of mortgage professionals. Whether you are looking for a home purchase loan, an FHA Streamline refinance or need to include repairs in your home mortgage with an FHA 203k loan, we can provide you with the service you need. Applying online is quick and easy. Just fill out our secure online mortgage application and we will reach out to you as soon as possible.