Georgia FHA Mortgage Loans

Georgia FHA Mortgage Loans

More people than ever before who live in Georgia are choosing FHA mortgage loans as a way to finance their home. Prior to the current credit crisis, FHA loans were not very popular. Now that many lenders have gotten rid of other loan programs, FHA mortgage loans have become the loan of choice for many people living in Georgia. FHA loans are no longer just for first time home buyers or for people with less than perfect credit – they have become more “mainstream”.

Most people are aware that FHA isn’t actually a lender who lends you money, they only act as an insurance company and insure your loan in the event of default. This means that when you take out your FHA loan, you will be required to pay (up front) something called UFMIP — short for Up Front Mortgage Insurance Premium. This amount of money varies from 1.5% of your loan amount to 3% of your loan amount depending on loan program.

Georgia FHA Mortgage Loan Highlights Include:

  • Monthly mortgage insurance is required to be paid for all FHA loans in addition to UFMIP
  • Down payment is 3.5%, but it can be a gift from a relative
  • There is never a prepay penalty on Georgia FHA mortgage loans
  • Sellers are allowed to pay closing costs with FHA loans

Georgia FHA Streamline Refinance

For people who currently have a FHA loan in Georgia, when rates drop the Georgia FHA streamline refinance is the program of choice to lower their mortgage payment each month. The FHA streamline refinance is the easiest way to get a lower rate. The FHA streamline is very, very popular when rates drop – because it is easy to get done as long as you have made your mortgage payments on time over the last 12 months.

Georgia FHA 203k Streamline Program

If you are thinking of purchasing a home that needs a few repairs, (many bank-owned properties fit into this category), the Georgia FHA 203k streamline program is a great choice. When you finance a home with the FHA 203k loan, the money set aside for repairs can be paid directly to the contractors and up to 35,000 can be set aside. 203k streamline loans can be tricky, so be sure to work with a loan officer who has experience helping people finance their home with a FHA 203k streamline loan.

Georgia FHA 85% Cash Out Program

For anyone interested in accessing a portion of the equity in their home, the FHA 85% cash out program allows you to access up to 85% of your homes value in cash. Many people use this as a way to consolidate high interest credit cards or pay off other debts.

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