September 19, 2021

MP Now News

Mortgage News

Where to Apply For an FHA Loan and How to Qualify

For many people, owning a home is a symbol of economic success and an investment that can increase in value over time. But many types of home Mortgage options can be an undue burden for millions of people due to lower incomes or higher debt ratios.

FHA loans other than traditional mortgages

The HUD website is a useful source of information on all types of FHA loans.

Home equity conversion mortgage

The HECM is a reverse mortgage loan that allows homeowners aged 62 and over to convert some of their home equity into cash.

To qualify, you must either own your property or have a small mortgage balance and live at home full time.

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FHA 203 (k) mortgage

For those buying a home that needs significant improvements, a 203 (k) mortgage allows you to buy the house and finance the renovation with a mortgage.

Energy efficient mortgage program

The FHA Energy Efficient Mortgage Program enables homeowners to fund energy improvements to the home, which also helps them save money on energy bills.

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Section 245 (a) Loans

Section 245 (a) of the FHA provides loans that expect homeowner incomes to increase over time. A Growing Equity Mortgage (GEM) is cutting the cost of buying a home with a plan to gradually increase mortgage payments. As payments increase, additional payments reduce the principal, which shortens the repayment period.

Graduated Mortgage Payment (GPM)

A tiered mortgage (GPM) is similar to the GEM, with monthly mortgage payments gradually increasing over time.