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FHA PURCHASE AND REFINANCE

How it Works

FHA Loans: Buying and Refinancing Your Home

FHA loans are government-backed mortgages insured by the Federal Housing Administration. They can help with buying a home (purchase) or lowering your monthly payment (refinance) on an existing mortgage.

Buying a home with an FHA loan:

  • Easier to qualify for with a lower down payment than conventional loans (typically 3.5%).

  • Requires mortgage insurance premiums (MIP) added to your monthly payment.

Refinancing your existing mortgage with an FHA loan:

  • May lower your interest rate and monthly payment.

  • Two main FHA refinance options:

    • Streamline refinance: Faster and easier process for existing FHA loans.

    • Cash-out refinance: Allows you to tap into your home equity and receive cash.

Things to remember:

  • FHA loans have loan limits depending on your area.

  • You'll need to pay closing costs associated with the purchase or refinance.

Speak to a mortgage professional to see if an FHA loan is right for you!

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