FHA Home Loans Portland
The Federal Housing Administration (FHA) provides government loan programs to support home ownership for US citizens. The benefit of utilizing the FHA loan program typically lies in credit requirements which are less strict and a down payment requirement of only 3.5%—which can be gifted to the borrower. First time home buyers and the seasoned home owners alike can benefit from this program.
Types of FHA home loans
There are different types of FHA home loans and we encourage you to talk with us to find one that is right for you. Some of these loans include:
- FHA fixed rate home loans: This is a government home loan where the interest rate is fixed throughout the loan term. These loans are typically 15 or 30 year terms and the monthly payments remain the same throughout the term, making your budget predictable.
- FHA adjustable rate mortgage (ARM): These are home loans whose interest rate will adjust periodically based on an index which is selected early in the lending process. ARM interest rates are lower than fixed rate mortgages, so your monthly payment at the beginning of the loan is lower. These government loans are a good option when you are planning to own the home for less than 5 years, the current interest rates are high, or if you anticipate increased earnings in the future.
- FHA rehabilitation home loan: The FHA rehab loan or Section 203(k) program is available for certain elegible properties that qualify needing rehabilitation or rebuilding. The FHA rehab loan provides financing to purchase the home and the rehab costs by lending amounts based on what the home value will be worth after the modifications have been made.
- FHA streamline home loan: The FHA streamline mortgage is a product for existing homeowners with a current FHA mortgage. Your refinance value is based on your original loan amount, not the current value of your home—there is no appraisal required.
Advantages of FHA home loans
There are a number of advantages with FHA home loans. Some of these include:
- Low down payments: with FHA home loans, you can purchase a home property with as little as 3.5% down payment and that money can be gifted.
- Less than perfect credit history: even if you have a poor credit history, you can still qualify for an FHA home loan.
- No prepayment penalties: You are able to make additional payments to principle without penalties.