FHA Loan New Jersey - American United NJ

FHA
Home Loan
The FHA 203(b)

What is an FHA loan?

FHA mortgages were created through the Federal Housing Administration (FHA) back in the 1930, to help increase home ownership throughout the US. They did so by providing a mortgage option to home buyers with less than the standard 20% down Payment.

Twice I moved and twice I called American United Mortgage. The service was exceptional, the rate was as quoted (and the best I could find) and we closed right on schedule. Thank you American United!
- Kristy B., Readington, NJ

Today, an FHA mortgage continues be an attractive alternative to conventional home financing. Other loans you might be interested in:

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Benefits of an FHA loan

Only a 3.50% Down Payment required
One to Four family properties allowed
Credit scores as low as 580 may be accepted
Flexible underwriting requirements
100% gift ok
Lender Credit to cover Closing Costs available

It's important to note that FHA does not actually lend money; it reimburses FHA lenders when borrowers default on FHA home loans. This reduces our risk, allowing us to offer this attractive low down payment and low interest rate loan to more home buyers and home owners.

You might consider an FHA loan if;

Your credit score is below 680
Your down payment is less than 5%
You are buying a 1-4 unit property
You need flexible underwriting standards

The FHA home loan is currently available as a 30 or 15 year fixed loan, a 5/1 ARM, or a 1 year ARM.
The fixed rate option is typically lower than a conventional fixed rate loan.

What's not so great;

FHA mortgages are “mortgage insurance heavy”, meaning the FHA requires that consumers pay both an upfront and monthly mortgage insurance premium. This premium is typically higher than Private Mortgage Insurance (PMI) required on a conventional loan with less than 20% down. In addition, an FHA loan requires mortgage insurance regardless of the down payment, and the monthly premium remains for the life of the loan. For a conventional loan, the PMI premium automatically drops off when a 78% loan-to-value is reached.

FHA mortgages are typically not for home buyers placing 10% down or more, or for those with high credit scores – conventional mortgage options like the Conventional Flex 97 represents a better deal for those applicants.

You should consider a Conventional loan if;

Your credit score is above 700
Your down payment is 5% or more
You have a good credit score
You are not using a gift for the initial 5% down payment

Find out if an FHA Loan is right for you

Call or email a local American United Lending Professional today.

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