Understanding FHA Loans
September 17, 2008
An FHA loan has various programs to choose from and this page gives you a brief overview of the available FHA programs for your Tulsa Real Estate needs which include:
- “Section 203(b)” this type of FHA loan program is for a single family dwelling that has a low down payment that can be as low as 3%, which means that you are allowed to finance up to 97% of the value of the home.
- “Streamline Refinance” this helps the underwriters with the amount of paperwork they need to do, so your FHA loan can be financed quicker.
- “Section 203(k)” this type of FHA loan program allows you to borrow for the purchase of the home and the rehabilitation with just one loan.
- “Section 203(i)” this FHA loan program helps with the purchase of a home that you will live in the majority of the year in a rural area.
- “FHA ARM” this is an adjustable rate loan for purchasing or refinancing a home in which you live the majority of the year at a lower interest rate.
- “Property Improvement Loan Insurance (Title I)” This program is for home improvements, you must meet certain requirements.
- “Energy Efficient Mortgage” this type of FHA loan program is for mortgage insurance that also incorporates the cost of adding energy improvements to your home.
- “Reverse Mortgage” this FHA loan program is for home owners that are 62 and up who have already paid off their mortgages or only have a small balance left on their loan.
Some fees known as closing costs will also be part of your FHA loan program. Closing costs are usually made up of the following:
- Attorney fees.
- Escrow fees.
- Property Taxes.
- Interest.
- Fees to record the information.
- Survey fees.
- Your first premium of your mortgage insurance.
Title insurance. - Your first payment to your escrow account.
- Paid insurance policy for fire and flood insurance.
- Other fees may apply.
Many people are now applying online for all types of FHA loans. This can be very convenient for many of us. There are also many companies online today that can give you the current mortgage rates for FHA loans for the city and state that you live in. Without even leaving home you will be able to check the current rates and find lending companies in your area that have the lowest mortgage rates available.
Do not apply for your FHA loan with a company just because their mortgage rates are lower than the last one you checked out. Be sure you check every option in every loan package to insure that you are in fact getting the best type of loan with the options that you need.
If you decide to apply online for a FHA loan check to be sure that the website is secure. You never want to give out personal information online unless the website has a secure server in which to submit your personal information. You can tell if the page that submits the information is using a secure protocol by checking the URL, if the URL looks like https:// then it is secure and all information submitted will be encrypted and will not be able to be read until it reaches its destination.
Before submitting information for a FHA loan, be sure that the lending company is a real company. If they are, in fact, legitimate they will have their physical address and telephone number posted in clear viewing somewhere on their website. You do not want to give out personal information concerning your bank account if you cannot be sure the company receiving the information is legit.
We will work hard to be YOUR Tulsa Real Estate Agent! We are the Tulsa Homes experts and will work hard to find the home of your dreams. Call Toll Free Direct at 1 (877) 738-8572 today.
