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Hear Ye! Hear Ye!
AMG Featured Loan Program
Each month we will feature a different loan program. We will dispel many of the myths and give you straight facts about the loan program we are featuring. We believe an educated consumer is the best type of client. If you have questions regarding any of our loan programs, our expert Loan officers will be there to assist you.
FHA Loan Program
Why choose an FHA-insured loan?
There are many good reasons to choose an FHA-insured loan, especially if one or more of the following apply to you:
- You're a first-time homebuyer.
- You don't have a lot of money to put down on a house.
- You want to keep your monthly payments as low as possible.
- You're worried about your monthly payments going up.
- You're worried about qualifying for a loan.
- You don't have perfect credit.
If any of these scenarios describes you, then an FHA-insured loan may be right for you. Why? FHA-insured loans offer many benefits and a level of security that you won't find in other loans including:
Low cost: FHA-insured loans have competitive interest rates because the federal government insures the loans for lenders.
Smaller down payment: FHA-insured loans have a low 3.5% down payment and the money can come from a family member, employer or charitable organization as a gift.
Easier qualification: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.
Less than perfect credit: You don't have to have perfect credit to get an FHA-insured mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA-insured loan than a conventional loan.
More protection to keep your home: The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.
FHA insures loans for lenders against defaults - it does not lend money or set interest rates. Allied Mortgage Group will work for the client in obtaining the lowest costs and interest rates. One of Allied Mortgage Group’s qualified loan professionals can help you start the loan application process.
You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, and/or a condominium.
What kinds of insured loans does FHA offer?
Fixed-rate loans - Most FHA-insured loans are fixed-rate loans. The advantage of a fixed-rate mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.
Adjustable rate loans - First-time homebuyers can be a little stretched financially. With FHA's adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.
The maximum amount that the interest rate on your loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment.
How do FHA-insured loans compare to conventional loans?
Conventional loans usually require a larger down payment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.
Let Allied Mortgage Group be your lender of choice since we are a direct lender. We give you more choices, faster approvals and will get you to the table in a timely manner.
Pennsylvania FHA Lending Limits
New Jersey FHA Lending Limits
Delaware FHA Lending Limits
Click here to see if you qualify
Refinancing your home could never be easier with Allied Mortgage Group. Some programs do not require a lot of documentation or appraisals as with other lenders and brokers. FHA/VA, government-sponsored streamline refinance loans, usually does not require an appraisal.
Apply now using our easy online application. Apply for your credit report through our secure web site. Credit scores not where they should be? Use the Credit Analyzer tool. This tool instantly recommends how to achieve higher credit scores. Be in the drivers seat when it comes to your credit scores.
"Purchasing a home is one of the most important goals will achieve in your life. At times it can be very stressful and complicated. However, Art Verbit with Allied Mortgage Group made it an easy process. Not only was he very timely and efficient but, he exceeded all of my expectations by far. I would recommend him to anyone, especially first-time homebuyer's." -Laura B., Philadelphia, PA
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