FHA Loans

At NW Capital Mortgage, we're committed to helping you navigate FHA mortgage loans with confidence. Unlike traditional lenders, the Federal Housing Administration (FHA) doesn’t provide direct funding—it insures your loan. This backing reduces risk for lenders, making it easier for qualified borrowers to secure financing with more favorable terms.

Our FHA Loan Experts will ensure that you meet FHA loan requirements, allowing us to help ensure your success. Whether you're determining eligibility or gathering necessary documentation, our FHA Loan Center has the insights you need to make informed decisions.

What is the FHA?

FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans get into homes.

What makes a FHA insured mortgage beneficial?

A FHA insured mortgage is easy to qualify for, can be obtained with less than perfect credit, costs less and requires a smaller down-payment.

What is the FHA loan limit in my area?

The loan limit across the country is different. Our Loan Experts will help you determine the loan limits in your area.

Can I pay an FHA loan off early?

Yes, however be sure to check the pre-payment section of your contract before signing.  We will help you with that.

Is there a FHA program to help me refinance my loan?

Yes, we offer an FHA Streamline Refinance to help you refinance your current FHA home loan. 

Can I refinance a fixed rate FHA loan?

Yes. Talk with one of our professionals today to see if refinancing makes sense for you.

Are FHA loans assumable?

Absolutely, you can assume an existing FHA loan or allow a buyer to assume yours.  This must be approved by both the lender and FHA.

Will I have to pay mortgage insurance with an FHA loan?

Yes, in fact FHA mortgages often require you to carry mortgage insurance for longer than most conventional loans.

Can I get a "fixer-upper" of a home with a FHA mortgage?

Yes, however you might be required to fix certain problems in the home before you can get the full loan. Speak with us today for details on this.

When you're applying for an FHA loan the following list of documents will help expedite the process. We can help you understand any part of the FHA loan process so don't hesitate to contact us with any questions.

Employment Info:

• Past two years completed tax returns. (if self-employed)
• Past two years W-2's, 1099's and any other necessary tax forms.
• One month of most recent pay stubs.

Savings Info:

• Past two months full bank statements for all accounts.
• Any recent statements from investment accounts (retirement, 410k, mutual funds, etc.).

Personal Info:

• Any Divorce, Palimony, Alimony Documents.
• Green card or work-permit (if applicable).

In order to qualify for an FHA loan, a borrower typically needs to meet this criteria:

• Proven employment status of at least 2 years.
• If you've filed for bankruptcy you must wait at least 2 years and have good credit since you filed.
• Those with foreclosures must wait at least 3 years since the most recent foreclosure, unless there are extenuating circumstances
• You must pay a minimum of a 3.5% down-payment.  However, that come from a gift or from an approved Down Payment Assistance program.
• Only certain properties are eligible - single-family homes, condominiums, double-wide manufactured homes, modular homes and 2-4 unit properties are all generally eligible.
• The property must be your primary residence.

What Is An FHA Streamline Refinance?

If you already have an FHA mortgage then you might qualify for a FHA Streamline Refinance. An FHA Streamline Refinance is a great way for a borrower with an existing FHA backed mortgage to reduce their interest rate, reduce their payment or possibly both.

Here are some really cool facts about an FHA Streamline Refinance:

• No Appraisal is Required – because your loan is already guaranteed by your existing FHA loan, the FHA will allow you to use your home’s original purchase price as your home’s current value.
• You can still refinance even if you are underwater – even if you owe more than your home is worth, you might still be able to get an FHA Streamline Refinance loan.
• There is no FHA prepayment penalty to worry about.
• FHA Streamline refinance rates are the same as “regular” FHA loan rates.
• Employment verification is not required with an FHA Streamline Refinance – in other words, no paystubs, no W-2s or tax returns are required for approval.
• Income verification is not required with an FHA Streamline Refinance

The Refinance Must Have An Acceptable Benefit To You

Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance or in other words a legitimate reason for refinancing. For Example:

• Refinancing from an Adjustable Rate Mortgage to a Fixed Rate Loan.
• or Reducing your principal + interest + mortgage insurance 5 percent or more.

Your Loan Balance May Not Increase To Cover The New Loan Costs with a Streamline Refinance

The FHA prohibits increasing a Streamline Refinance's loan balance to cover associated loan charges. The new loan balance may increase but only by the cost of the Upfront Mortgage Insurance Premium. All other costs -- origination charges, title charges, escrow -- must either be paid by the borrower as cash at closing, or credited by the loan officer in full.

However, you can increase your loan amount if you do a credit qualifying refinance, or a cash-out refinance. 

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.