UNDERSTANDING FHA MORTGAGES IN WISCONSIN

Purchasing a new home is exciting. Finding the right home and mortgage broker for you and your family requires a great deal of work and decision making. However, we make finding the right mortgage simple for Wisconsin home owners. With the ever changing market, many Americans are taking advantage of a stable FHA loan to purchase their new home.  Select financial Mortgage Corp is the perfect choice for your next Wisconsin mortgage loan.

An FHA mortgage can be an attractive option for a Wisconsin first-time home buyer, as down-payment requirements for a FHA mortgage can be as low as 3.5 percent.  You don’t need to be a first-time buyer to take out a FHA mortgage; the only stipulation is that a purchaser may only have one FHA mortgage at a time.

FHA Refinancing

An FHA mortgage also allows homeowners to obtain a FHA refinance.  A FHA refinance makes it possible to lower your interest rate and your monthly payments. You may also take out cash from the equity in your home to pay off debt or make home improvements. With many Americans currently facing high or adjustable interest rates, it's hard to keep up with the mounting monthly mortgage payments. Choosing Select Financial Mortgage Corp for your next Wisconsin Mortgage Broker will make your home buying experience a great experience.

History of the FHA

The FHA, or the Federal Housing Administration, was established by the government to improve housing conditions for Americans. The government established the FHA mortgage program in 1934 to improve existing housing standards and conditions. Prior to 1934, a down payment was typically 50 percent of the home’s price and payments were stretched out between only 1-5 years. You can learn more about FHA loans from the Department of Housing and Urban Development.

How a FHA Mortgage Works

The FHA does not lend the money; it simply insures that the total mortgage will be paid to the lender if the buyer defaults. It is always the decision of the private lender (a bank, credit union, or savings and loan) to decide whether or not they will lend the money.

The FHA mortgage program tends to be more forgiving than conventional mortgages in terms of past credit history. A bankruptcy discharged as little as two years ago may not hinder a home buyer from qualifying for the FHA program.

Wisconsin FHA mortgages only require a 3.5% down payment. Unlike traditional loans, this money may also be a gift to the home buyer and does not need to be secured as the home buyer's own money.

Borrowers will also have to pay PMI (private mortgage insurance) on the mortgage. PMI is used to ensure that the total amount of the mortgage will be paid to the lender if the buyer defaults. Usually, a PMI will not be put into effect until 20 percent of the mortgage has been paid.

Please contact your Wisconsin Mortgage Broker to reference loan amount limits, and what you specifically qualify for.

Do I Qualify for an FHA Mortgage?

To be approved for a Wisconsin FHA mortgage, you must have a satisfactory credit history, which shows your commitment to paying off debts in a timely manner.   FHA requires verification of income covering your most recent 2 years, and to show a satisfactory income amount to pay your monthly obligations including your new mortgage.  FHA requires that the property be owner occupied for the a minimum of 12 months proceeding your loan closing.  More information about loan qualifications are available from your Wisconsin Mortgage Broker.

While these qualifications may seem a little stringent, they are actually much more lenient than traditional mortgage qualifications. The decreased down payment makes this type of mortgage even more desirable for many new home buyers.

Select Financial Mortgage Corp is the perfect choice  when looking for a Wisconsin mortgage loan.

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