FHA Loans
Hartford Funding is a Federal Housing Administration-approved lender. The FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the U.S. and its territories, for both single-family and multifamily homes. The largest mortgage insurer in the world, the FHA has insured over 34 million properties since its inception in 1934.
Benefits of FHA-insured mortgages include lower costs (federal backing makes for competitive interest rates); smaller down-payments (through Hartford Funding, FHA loans require only 3 percent down); and easier qualification (with FHA insurance, lenders are often more willing to craft loan terms that make it easier for you to qualify).
Even if you have less-than-perfect credit, you may qualify for an FHA-insured mortgage. And if you run into hard times later, the FHA has many assistance options designed specifically to keep you and your family in your home.
Generally, to be eligible to apply for an FHA loan, you must:
- Have a valid Social Security number
- Have lawful residency in the U.S.
- Be of a legal age to sign on a mortgage in your state
Hartford Funding will also verify income, assets, liabilities, and credit history for all parties on the loan, and a non-occupant co-borrower is permitted.
To qualify for an FHA insured loan, applicants must meet specific employment, credit and income criteria, including the following conditions:
- Steady employment history, at least two years history of employment
- Consistent or increasing income over the past two years
- Any Chapter 7 bankruptcy on record must be at least two years old with good credit for the two consecutive following years.
- Any Chapter 13 bankruptcy on record must be in good standing for one (1) year with trustee permission to enter into new debt
- Any foreclosure must be at least three years old
- FHA mortgage payment of no more than approximately 31% and total debt to income of approximately 43% of applicant's total monthly gross income
Unlike conventional loans, FHA-insured loans require small down payments. There is more flexibility in an FHA loan than conventional loans in analyzing household income and payment ratios. The cost of the mortgage insurance is passed along to the homeowner and typically is included in the monthly payment.
FHA understands that many homebuyers may have had some financial problems in the past or don't have a lot of money saved. That doesn't mean you can't buy a home. Because FHA insures your mortgage, lenders may be more willing to give loans with lower qualifying requirements, making it easier for you to qualify (or get approval). Even if you have had credit problems such as bankruptcy, it may be easier for you to qualify for an FHA loan than a conventional loan. FHA has a low 3% down payment requirement, and that money can come from a family member, employer or charitable organization. Many other conventional loans don't allow this.
Conventional loans usually require a larger down payment. And, if you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates and/or fees than you expected. The best thing to do is compare the cost of the conventional loan to an FHA loan line-by-line. What are the fees, interest rate and mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA.
Hartford provides low rates whether you're buying a home, refinancing or looking for a home equity loan or home equity line of credit. We're considered one of America's fastest-growing and best-managed mortgage banks. Through 15 years of happy clients, our attitude is still "we've got a lot more to do". We continually strive to improve the quality of our service, financial products, and your borrowing experience. When you need a customized loan, think Hartford First.
Your mortgage consultant has the ability, at his or her fingertips, to provide you with a conditional approval decision in just in minutes during your very first phone call.
Hartford Funding mortgage consultants are available to you-live and on the phone- 24 hours a day, 7 days a week. So whenever it's most convenient for you to apply, find out more information, and whenever you have questions about a loan in progress - your answers are just a quick phone call away.
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FHA Loans