FHA Loans Lyon Real Estate
Downtown Sac Office

FHA Loans 

An FHA loan is offered by a conventional lender but the government (Federal Housing Administration) insures the loan, therefore, limiting the risk to the lender. At the present time, FHA insured financing is available for owner/occupant purchasers or owner/ occupants wanting to refinance. 

The loan programs that are the most popular are:   

          1. FHA 203b Program

          2. FHA 203k Streamlined Program
 
          3. FHA Home Equity Conversion Mortgage (a.k.a HECM)
              Reverse Mortgage Program

 FHA 203b Program

          1. The down payment can be as little as 3½ % and can be gifted by family members

          2. Seller can contribute up to 6% of the home's price toward closing costs through
              a seller concession    

          3. Minimum credit scores are not required by FHA.

 FHA 203k Streamlined Mortgage

          1. The FHA Streamlined K mortgage program allows home buyers to finance home
              improvement costs up to $35,000           

          2. Must use licensed bonded contractors.

          3. Loan funds can be used for energy efficient upgrades.

          4. No inspections required if repairs are under $15,000.

          5. Repairs can be completed after closing.

 

FHA Home Equity Conversion Mortgage (Reverse Mortgage)

          1. Convert equity to cash.

          2. Can be used for refinance or cash out.

          3. Youngest borrower must be 62 years of age.

          4. No income requirements or credit qualifying.

          5. No monthly loan re-payments.

The FHA loan programs offer many advantages in today’s markets. The loan limits are what they were in 2008. We are not lenders but we can provide helpful information for the FHA loan programs.