WHAT YOU SHOULD KNOW ABOUT
FHA PURCHASE & REFINANCE LOANS
Wisconsin FHA mortgage programs are more popular than ever for new home purchases in Madison and all of Wisconsin. The FHA home loan is in demand because of the low, 3.5%, down payment, low interest rates and lower qualifying credit scores.
Wisconsin FHA mortgages offer the security of a government insured home loan. Whether you’re buying a new home or refinancing, the FHA mortgage could be right for you. To learn more, call (608) 960-4451 or simply fill out a no-obligation Online Application today!
First Time Home Buyer or Looking to Refinance? FHA Home Loans Can Have Key Advantages:
Easier Qualification Guidelines – FHA programs are designed to increase the housing market. These mortgages are government insured, which eliminates risk to the lenders. FHA has more lenient guidelines compared to conventional mortgages allowing more borrowers to qualify for FHA mortgages.
Minimal Down Payment Requirements – FHA mortgages can work with as little as 3.5% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your experienced loan officer can find down payment assistance programs that work well with Wisconsin FHA home loans.
Less than Excellent Credit is Okay – The Wisconsin FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or foreclosures get approved every day for FHA new-purchase mortgages or refinance mortgages for homes in Dane County or any of the other Wisconsin counties. The FHA loan program uses credit quality, not simply credit score!
Lower Cost Over the Life of the Loan – The Wisconsin FHA home loan rates are extraordinarily competitive. FHA insured mortgages offer lower risk to the lender which translates to a better rate for the borrower.
Safeguards for Borrowers Who Get Behind – The Wisconsin FHA loan mortgages also allow the lender more options to help borrowers get and stay current on mortgage payments: special forbearance, workouts, even free mortgage counseling. Further, FHA can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.
Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Wisconsin FHA mortgage loan. Call (608) 960-4451 to get pre-approved for a Wisconsin FHA loan for manufactured housing or just use the Online Application to learn more!
FHA Home Loans For Purchasing A Wisconsin Home
Although Wisconsin FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Wisconsin is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Wisconsin Mortgage.
FHA Home Loans Offer The Convenience Of Streamlined Refinance
An FHA streamline refinance is one of the easiest home loans for Mortgage Lenders and borrowers. If FHA approved you for the original Wisconsin FHA mortgage, the paperwork to refinance is minimal and the process is simple.
So long as you have made your mortgage payments on time for the previous 12 months, you can lower your monthly payment if interest rates go down with minimal out of pocket expense. Even if you have been late on your FHA mortgage, you might still qualify for an FHA streamline refinance in Wisconsin under very specific conditions.
Less documentation and no appraisal are just two of the reasons an FHA streamline refinance is cheaper and faster for the borrowers who qualify.
FHA Mortgage Loan Streamline Refinance Requirements
- Your current mortgage must be an FHA mortgage.
- You must have made 6 payments on your current FHA Mortgage.
- You must have paid your mortgage on time for the most current 12 months.
- Your FHA Streamline Refinance must lower the principal and interest by at least 0.5% or convert the mortgage from an ARM to a fixed rate FHA home loan.
- You cannot get cash out on the FHA streamline refinance.
- Any existing liens on your Wisconsin home must be subordinate (second) to the new FHA mortgage.
FHA Mortgage Loan Refinance Programs For Cashing Out Equity & DEBT CONSOLIDATION
Although a streamline refinance does not allow you to cash out equity; I do have access to other FHA loan refinance programs specifically designed for borrowers who want to cash out equity to consolidate debts, make home improvements or to access funds for other purposes.
Unlike many conventional loan programs, the FHA mortgage does not adjust the rate based upon loan to value or credit score. You will find that FHA has very reasonable underwriting guidelines for cash out refinancing.
It is possible to borrow up to 85% of the appraised value of their homes and use the funds to consolidate debts or to make home improvements and other purposes. Qualified borrowers will have to look hard to find lower rates and better terms than they can get on Wisconsin FHA cash out refinance right now!