The FHA program is ideal for first time home buyers, people with limited money for a down payment, and those who might have to pay higher interest rates on conventional loans due to credit scores. FHA does both purchase and refinances. When buying a home, you need to put down only 3.5% all of which can come from a gift. You can also get a sellers assist up to 6% of the sale price which in many instances covers all of your closing costs.

When refinancing you can go to 97.75% of the home value. If you are not taking any additional cash out of the property. If you do want to take cash out the maximum loan to value is 85%. For certain refinances of existing FHA loans appraisal may not even be required.

FHA rates are competitive comparing to conventional loans for both purchases and refinances and both fixed and adjustable rates are available. The minimum credit score is 620, and sometimes as low as 580 with additional requirements to be eligible. You may only use an FHA loan to purchase a primary residence. You may be able to refinance a second home or investment property, however the existing loan must be FHA. In most cases you may only have 1 FHA loan at a time.

The benefit of dealing with BHS Mortgages Residential & Commercial is that we work with multiple lenders at all times and we have the flexibility to negotiate to get you the best rates and fees on the transaction.