What is an FHA Loan?
The main goal of the Federal Housing Administration (FHA) is to improve the housing market and protect lenders in case a borrower was to default on their mortgage. The FHA has become one of the largest insurer of mortgages in the United States. Superior Mortgage Lending LLC is proud to offer great rates and flexible financing options on Las Vegas, Henderson, North Las Vegas and the whole state of Nevada.
What can a FHA Loan be used for?
A Las Vegas FHA Loan can be used for a number of different purposes including but not limited to: purchasing a new home, special renovation projects, refinancing an existing mortgage, and even reverse mortgages. Cash-out refinance options are available to buyers in need of capital for this such as debt consolidation and home repairs. Streamline refinance loans are also labile to reduce interest on current loans.
FHA Credit Requirements
FHA Loans offer relaxed credit requirements and lower down payment options making them easier to qualify for and very popular to those in the state of Nevada. To qualify for an FHA Loan in Las Vegas they need a down payment of 3.5 percent and a credit score of 580. If a borrowers does not having enough savings, family members can also gift the down payment. FHA Loans are a popular option to first time home buyers in Las Vegas, North Las Vegas, Henderson, and the whole state of Nevada.
Nevada FHA Loan Requirements
- Low Down Payment: The 3.5% down payment is generally less that for a similar conventional loan
- Less stringent qualifying standards: for example- FHA will allow reestablishment of credit within two years after a discharge of bankruptcy; when any judgments have been fully paid, any tax liens have been repaid, or a repayment plan has been established by the IRS, and within 3 years after a foreclosure has been resolved
- The property must be owner occupied: The FHA used to insure investors properties but they have virtually eliminated all such programs. Two-to-four unit properties qualify if they are owner occupied
- Appraisal: The lender is required to obtain an appraisal of the property from an FHA-approved appraiser. The appraiser will note any major health and safety deficiencies on the Uniform Residential Appraisal Report (URAR)
| Average Home Price
as of 2017 – Nevada Home Values have gone up 8.8% and it is predicted to rise 3.7% within the next year
|1% Down PaymentConventional Loan|| 3.5% Down Payment
FHA charges an up-front premium of 1.75%-2.25% of the loan amount. In addition, FHA charges a monthly premium equal to .05% of the loan amount annually. If the property is sold within the first 84 months of the loan term, any unused portion of the up-front MIP will be returned to the borrower. When the loan balance drops below 78% of the original purchase price, the monthly payment may be cancelled, provided the borrower has made payments for five years on a thirty-year mortgage
Monthly Insurance Premium
FHA Mortgage Insurance premium is required for the loan regardless of the amount of the down payment. In contrast, conventional loans usually do not require mortgage insurance unless the loan-to-value ratio exceed 80%. All FHA loans require a mortgage insurance premium (MIP)
Working with an Experienced Lender
At Superior Mortgage Lending LLC, we are committed to helping our clients with all of the FHA Loan needs in Las Vegas, Henderson, North Las Vegas, and whole state of Nevada. If you are purchasing your first home, or want to refinance your current loan at a lower rate Superior Mortgage Lending LLC can help. Contact us today at 702-507-4170 with any questions you have on a FHA Loan and find out how to get qualified.