The New FHA In San Jose-California
San Jose-California mortgage borrowers looking for an FHA mortgage refinance will find the article helpful.FHA has loan amount limits based on Specific County throughout California and for every state. California mortgage borrowers need to know the basics of an FHA loan.FHA mortgage is backed by Federal Housing administration. What that means is that you have an FHA loan the bank knows that its mortgage amount is secured and hence banks feel comfortable in lending money on mortgage as FHA. Another advantage of having an FHA loan is that since it’s backed by a government agency, it is not credit score sensitive. Meaning, unlike conventional mortgage where if you have excellent scores you qualify for lowest mortgage rates. Here with an FHA even if your score is 660 you will still get a mortgage rate as if your credit score were 740.
Another thing to know is that if you need to take cash out on FHA mortgage. FHA allows you to borrow 85% of the value of the home. Whereas if you have conventional mortgage you can borrow no more than 80% of the value of the home.Upfront Mortgage insurance Premium is a onetime cost that is normally built into the loan. FHA is backing your loan but you have to buy policy just like you buy insurance and pay premium. There is no free lunch.San Jose –FHA mortgage borrowers should know that when you refinance FHA, this upfront mortgage insurance premium is adjusted with the new upfront premium.
The monthly mortgage insurance premium is different and this almost will never leave the borrower. So if you feel that your mortgage amount is 80% or less of the current value of home you must switch your mortgage from FHA to conventional. It is the only way to get rid of your mortgage insurance.
San Jose- California FHA mortgage borrowers looking to refinance can look into STREAMLINE FHA as refinance mechanism. No new appraisal will be needed; fewer documents are needed because the last time you took an FHA loan it’s already insured by FHA.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. You can even e mail at roger@affordable-payment.com
Article by Roger Shanker
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