FHA loans

FHA loans

One of the most common Home Loans used in Tennessee to purchase a Single Family Home or Condo is the FHA Loan.   FHA Loans require a minimal 3.5% down payment, and allow more flexible Underwriting for Debt Ratios, Minimum Fico Scores, and Gift Funds when compared to conventional loans.

Tennessee FHA Loans are made by Private Mortgage Lenders such as Network Funding.   FHA Loans are then insured by the Federal Housing Administration,  a Federal Agency that is a department within HUD, the U.S. Department of Housing and Urban Development.   The FHA does not loan money direct to Tennessee Home Buyers.   It provides lenders with default protection through mortgage insurance (MIP) in the event the borrower defaults on his or her loan obligation.

FHA Loans are available to all buyers in Tennessee.  FHA Loans do not have a maximum income limit, and are available to First Time Home Buyers as well as Second Time or subsequent Home Purchasers.   FHA loan guidelines allow many creditworthy families to purchase homes or refinance home who otherwise do not meet requirements for conventional loans.   Conventional loans typically require higher fico scores, lower debt ratios, and longer waiting periods after Bankruptcy, Foreclosure, or Short Sale.   In most cases,  FHA Loans require 3 yrs or less for these events.   If you have experienced one of these financial hardships,  give us a call to see how soon you can become a homeowner again.

Tennessee FHA loans require just 3.5% down payment on a home purchase, which can be from the borrowers own funds or a gift from qualified sources.

The closing costs for a Tennessee FHA Loan can be paid by the Seller, Buyer, Real Estate Agents, or the Lender (or any combination of the above, up to the limits).

Tennessee FHA Refinances require just 2.25% equity in your home, and can consolidate a first and second mortgage into one low 30 yr fixed rate.

FHA Loan rates are competitive versus conventional loan rates, even with lower down payment requirements than most conventional loans.

Some other benefits of FHA financing:

  • Just a 3.5 percent down payment is required.
  • All Down Payment and Closing cost monies can be Gifted
  • FHA Loans available in Tennessee up to $432,500 for 2012 (select counties)
  • Affordable monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
  • More flexible underwriting criteria than conventional loans
  • More forgiving underwriting criteria for Credit Scores, Bankruptcy (2 yrs), Short Sale(0-3 yrs), and Foreclosure (3 yrs)
  • Loans are assumable to qualified buyers.
  • FHA Loans allow you to consolidate a first and second mortgage without classifying the loan as Cash out  – a limiting factor in Conventional Loans

VanDyk Mortrgage is a Full Eagle FHA Direct Lender. We underwrite & fund your loan direct. There is no middleman. Call the FHA Experts, call VanDyk Mortgage.  866-435-6553 (toll free).

2014 FHA Loan limits for Tennessee


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