FHA Loan

An FHA loan is a home mortgage that allows for a purchase or refinance of a primary residence with a low down payment and is insured by the Federal Housing Administration. FHA’s mortgage insurance programs help families become homeowners by lowering the cost of financing and the down payment barrier to buying.  FHA loan limits vary by county.

FHA loans have strong programs for buying or refinancing your primary residence, please contact your On Q Financial Mortgage Consultant today to find out about low down payment options available on numerous types of properties.

Some of the benefits include:

Down payment requirements can be low

In contrast to conventional mortgage products, which frequently require down payments of 5% to 20% depending on your credit history, FHA makes it possible to reduce your down payment to as little as 3.5% on numerous type of properties. These Mortgages are insured by FHA which allows borrowers to finance approximately 96.5% of the value of their home purchase in many cases.

Borrowers can make the down payment with a gift

The down payment can be 100% gift funds from a family member or in some cases a charitable organization. This is one of the key benefits to the FHA program. Verification of the source of gift money is required. It is necessary that the gift funds be deposited in the borrower’s bank, or in an escrow account, prior to underwriting approval. Proof of deposit is required. Cash gifts are not allowed.

FHA Streamline Refinances

FHA has permitted streamline refinances on insured mortgages since the early 1980s. “Streamline” refers only to the amount of documentation and underwriting that needs to be performed by the mortgage company.

The basic requirements of a streamline refinance are:

  • The mortgage to be refinanced must already be FHA-insured.
  • The mortgage to be refinanced should be current (not delinquent).
  • The refinance is to lower the borrower’s monthly principal and interest payments.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.
State Licenses

On Q Financial offers home loans for Conventional, FHA, VA and USDA financing in the following States: Alabama Consumer Credit License #100758 | Arizona Lender #BK-0906866 | California Lender #603E172 | Colorado #LMB000021795 | District of Columbia Dual Authority License #MLB5645 | Florida Lender #MLD358 | Georgia Lender #22050 | Idaho #MBL-6579 | Illinois Lender #MB.6760285 | Indiana DFI First Lien Mortgage Lending License #16384 | Louisiana Residential Mortgage Lending License #5645 | Maryland Mortgage Lending License #19585 | Massachusetts Mortgage Broker License #MC5645 | New Mexico Mortgage Loan Company #03079 | North Carolina Lender #L151336| Oklahoma Mortgage Broker License #MB002107 | Oregon #MI-4892 | South Carolina Lender #MLS-5645 | Tennessee Lender #4402 | Texas #5645 | Utah DRE Mortgage Entity License #8125475 | Virginia State Corporation Commission #MC-4559 | Washington Lender #CL-5645 | On Q Financial, Inc NMLS #5645

Disclaimer

This web site and the information it contains are provided as a service by On Q Financial, Inc. to assist those who have questions or concerns about purchasing a home and available mortgage products. Our web site has links to sites we feel might be useful to you and which may provide services. When you link to another site, you are no longer on our site and are subject to the privacy policy of the new site. On Q Financial Inc., accepts no responsibility for the content or accessibility of the external websites or external documents linked to on this website. Readers are encouraged to research and verify information contained herein. The information on this website is not intended to substitute for advice from professional credit counselors or legal counsel. On Q Financial, Inc. cannot and does not provide legal advice to members of the public. The listing of an organization does not necessarily represent sponsorship or endorsement of the information or organization by On Q Financial, Inc.