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Bankers Mortgage Corp. > FHA Loan Common Questions

FHA Loan Common Questions

Check out our list of common questions related to FHA mortgages. Check out our list of common questions related to FHA mortgages.
What is the FHA?
  • FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans get into homes.
What makes a FHA insured mortgage beneficial?
  • A FHA insured mortgage is easy to qualify for, can be obtained with less than perfect credit, costs less and requires a smaller down-payment.
Where can I find FHA forms and other literature? What is the FHA loan limit in my area?
  • The loan limit across the country is different.
Can I pay an FHA loan off early?
  • Yes, FHA loans do not have a prepayment penalty, however at the time the loan is paid off, you will pay interest for the entire month in which the payoff is received. So if you pay off the loan on the 15th of a month, you will pay interest through the end of the month.
Can a FHA insured loan help me lower energy costs?
  • Yes, through the Energy Efficient Mortgages Program you can finance 100 percent of the cost of making your home more energy efficient. Contact us to see how.
Is there a FHA program to help me refinance my loan?
  • Yes, the recently create FHASecure is one of the ways that we can help you refinance your current home loan. Contact us now to see what we can do for you.
Can I refinance a fixed rate FHA loan?
  • Yes. Talk with one of our professionals today to see if refinancing makes sense for you.
What is the recommended debt-to-income ratio for FHA loans?
  • The recommended debt-to-income ratio for a FHA can vary depending on credit. The normal guideline is that your total housing payment including principle, interest, mortgage insurance, taxes and homeowners insurance, should not exceed 31% of your gross monthly income. This guideline could be exceeded with good credit.
Are FHA loans assumable?
  • Yes, you can assume an existing FHA loan or allow a buyer to assume yours.
Will I have to pay mortgage insurance with an FHA loan?
  • Yes, however the monthly mortgage insurance cost is often less than that on most conventional loans.