Indiana FHA Mortgage Loans

Indiana FHA Mortgage Loans

There are more people than ever before in Indiana who are choosing FHA mortgage loans as the best way to finance their home. Just a few short years ago, FHA market share was minimal, but today FHA mortgage loans comprise almost half of the new home financings. FHA is now one of the most popular mortgage loan options when financing a home, and it is probably safe to call FHA loans “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.

Indiana FHA Mortgage Loan Highlights Include:

• For all FHA loans, there is never a prepay penalty
• FHA loans allow for seller-paid closing costs
• On all FHA mortgages, you are required to pay monthly mortgage insurance
• 3.5% down payment required

Indiana FHA Streamline Refinance

If you currently have a Indiana FHA loan, the Indiana FHA streamline refinance program is one of the most popular choices when it comes time to refinance. The FHA streamline refinance is the easiest way to get a lower rate. The primary criteria to be eligible for the FHA streamline is that you have made your mortgage payments on time for the last 12 months.

Indiana FHA 203k Streamline Program

The FHA 203k streamline loan is great for buying bank-owned properties in Indiana because it allows you to finance repairs right into the loan. 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. If you think the FHA 203k streamline might be an option for a home you are considering, be sure to speak with a loan officer who has experience with FHA 203k streamline loans.

Indiana 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 find that by paying off high interest debts, they are able to get in a better overall financial position.