New Mexico FHA Home Loans
HUD and Shopping For A Home
Over 34 Million Homes insured through the FHA mortgage program since 1934 when the program was created.
Compared to conventional mortgages that have tighter underwriting guidelines, FHA-insured loans appeal to a wider range of home buyers by offering easier credit standards, lower down payment requirements and more flexible income calculations.
FHA purchase guidelines allow a Loan-to-Value (LTV) percentage of up to 96.5% on all qualified property types. Qualifying property types include single family homes, town homes, condominiums, multi-unit properties (up to four units), and manufactured homes. Most conventional mortgages will only allow a Loan-to-Value (LTV) percentage of up to 90% for condominiums and only 95% LTV ratio for single family homes.
FHA Home Loan Benefits
The purpose of these loans is that the US Federal Housing Administration can help homebuyers by providing mortgage insurance on your loan. The FHA itself does not actually make the loans, instead they "insure" the mortgages that a traditional lender or bank would make to a borrower.
Primary Benefits Of FHA-Insured Mortgage Loans:
- No prepayment penalties on your loan
- Can streamline the refinance process with reduced documentation
- Flexible Credit Requirements
- Competitive Interest Rates and Fees
- Low Down Payment
Basically, the FHA helps more New Mexico borrowers afford to buy homes by giving lenders the assurance they need in the case where a borrower defaults on a loan and is unable to continue making mortgage payments.
Buy Again After Program
The FHA has just released new guidelines on their "FHA Back to Work" program, which is intended to help homeowners qualify to buy again after a short sale, bankruptcy and even foreclosure in as little as 12 months, provided the extenuating circumstance can be tied to a proven decline in employment. This is a great program to help the many homeowners who were impacted by the economy and fell on difficult times through no fault of their own.
You can check to see if your scenario is eligible for New Mexico FHA Home Loan Program by CLICKING HERE, or feel free to call us at 866-285-9057 to speak with an approved FHA Mortgage Lender who specializes in low downpayment and FHA loan programs.