FHA streamline refinance in all 50 states
Home purchase | Cash-out refinance

Choice Finance® is FHA approved
Maryland, Virginia, Washington D.C., Delaware, West Virginia

FHA refinance
You do not have to currently be in an FHA loan for us refinance you into an FHA loan.  Increased loan limits allow you to get a great low rate on loan amounts up to $729,750 in some counties (Check out the new loan limits for your county). 

Refinance up to 97.75% of your home's value.  Many sub-prime borrowers will qualify for an FHA loan.  "Cash out" and get 95% of the appraised value of your home in cash back at closing.. a low interest option to pay for home improvements, or pay off high rate credit card debt. 


Streamline refinance
You must currently be in an FHA loan for us to streamline refinance you into another one.  Choice Finance® can help you with your streamline in all 50 states.  This fha streamline is a very simplified process and used primarily when you are not getting cash out of your property.  We will only need to verify that you have a current and timely 12 month mortgage history.  No paystubs, no w2's, no tax returns, no assets, no reserves, no credit report, and no appraisal needed when you FHA streamline.  We also have options available where we can pay your closing costs. 

If you no longer live in this property as your primary residence, we can still help you with a streamline refinance without an appraisal.  Your new loan amount will be calculated based on your outstanding principal balance and not on the original loan amount.


Home purchase
Buy a home with a very low down payment and very flexible qualifying guidelines.  Gift funds are allowed for the entire down payment, closing costs, and pre-paid items.  FHA and Choice Finance® will get you into your home when many other programs are unable to. 

Ask us about our no down payment, no closing costs, and no money at settlement better than 100%, financing program.

 

 


New FHA loan limits     Préstamo de FHA     FHA rates

Blogs:
- New mortgage limits
- Subprime borrowers needing to refinance
- FHA reform in 2008
- Low and no downpayment  mortgages
- Does HUD owe you a refund on your upfront MI you paid?

 

 

General FHA guidelines
The Federal Housing Administration provides mortgage insurance on loans made by FHA approved lenders.   This insurance provides protection for the lenders against mortgage default losses.  Mortgage insurance is automatically approved when your FHA loan is approved.  This is different than FNMA, where you might get approved for the loan but then can't find a Mortgage Insurance Company to insure the loan.

If you will be purchasing a condo and would like to use FHA financing, first make sure your condominium is approved, https://entp.hud.gov/idapp/html/condlook.cfm

Credit
- At minimum, you must have a 530 mid credit score.  An explanation will be required and sometimes proof for all late payments.  Your mortgage must be current at loan approval.
- Bankruptcy BK- Minimum 1 year with extenuating circumstances such as illness or loss of your job will require an explanation and proof.  2 years since your BK was discharged will require an explanation.
- A foreclosure will require a minimum of 3 years and an explanation.  No government loan defaults, such as student loans, allowed.
- No existing credit?  You can build alternative credit and show at least 3 tradelines each with a 12 month history.

Products
FHA fixed mortgages- 10, 15, 20, 25, and 30 year fixed rate
FHA adjustable- 1, 3, and 5 year adjustable rate based on the 1 year Treasury with 1/1/5 caps.

Borrowers
U.S. Citizens, permanent resident aliens, non-occupant co-borrowers

Eligible properties
1-4 units, PUDs, modular homes, some double-wide manufactured homes, fha approved condos
Home purchase and no cash-out refinance up to 97.75%
Cash out refinance up to 95% for 1 & 2 units
Cash out refinance up to 85% for 3 & 4
Cash-out and debt consolidation are considered the same thing

Mortgage insurance premium
1.5% upfront, financed over the life of the loan.
Annual MIP is .50% per year on 30 year loans, charged monthly.  .25% monthly on 15 year loans
mortgage insurance factors- conventional financing

 

Choice Home Purchase program
My Community | Police | Military, VA | Teachers

 

 

FHA highlights include:
- Many sub-prime borrowers will qualify for an FHA loan.  Refinance out of your subprime loan and into a low rate FHA loan.  FHA qualifying is very flexible and is not based as heavily on credit scores. 

- Your down payment can be as low as 2.25% of the purchase price with a total of 2.75% into the transaction.  You can get a gift for the entire down payment, closing costs, and prepaid items.  An acceptable gift letter, proof of funds and transfer is required.  Most of your closing costs and fees can also be included in the loan.

- Financing for mobile homes and manufactured factory-built housing.  We have two loan products – one for those who own the land that the home is on and another for mobile homes that are or will be located in mobile home parks. 

- Own a home that you want to re-model or repair?  Refinance what you owe and add the cost of repairs all into one loan.  Looking to buy a HUD Home?  Properties that don't require significant repairs can be purchased.  The property listing will indicate if it is eligible for purchase through FHA.   HUD homes

 

FHA Secure
Due to recent developments in the mortgage market, HUD Secretary Alphonso Jackson and President Bush have implemented an FHA refinance program called "FHASecure".  To qualify, borrowers must meet 5 criteria:

1) History of timely mortgage payments before their adjustable rate increased
2) Rate will re-set between June 2005 and December 2009
3) 3% equity in home or 3% cash
4) Sustained employment history
5) Income must meet qualifying guidelines

FHASecure can help you even if you're currently in default, and if the value of your home is less than what you owe.  The lender considering the refinance would have to be willing to accept a short payoff on the existing loan OR hold a second mortgage to make up the difference.  To answer most of your questions, visit FHASecure's FAQ.

Please contact us for further explanation and to see if you qualify for a FHA Secure refinance. 

 

Kiddie Condo program
FHA for College Housing
Qualify to purchase a property as if this is your primary residence!   When your college student co-borrows with you (blood relative- parent, grandparent..), the loan will be qualified based on your merits.   Both of you will hold Title and sign as borrowers on the loan. 

Benefits include:
- allow for as little as 2.25% down payment
- student needs no job, no credit, no assets
- you will have a low owner occupied rate.  This is huge.  Under any other program you would have to buy this as your investment property, which means your rate, fees and down payment would be much higher.
- allow for extra bedrooms to be rented out.
- build your college student's credit before they even graduate
- you can use this with non-students as well
- tax benefits may be given to the owner(s) who pay the expenses.  The property is treated as your principal residence and therefore there are no capital gains taxes to pay! (consult your tax advisor).

 

FHA options- rates, fees, good faith estimate
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FHA APPROVAL
FHA approval