FHA Loans

Why choose an FHA-insured loan?

There are lots of 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 things describe you, then an FHA-insured loan may be right for you.

FHA-insured loans have competitive interest rates because the federal government insures the loans for lenders. 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. Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

What kinds of insured loans does FHA offer?

• Fixed-rate loans - Most FHA-insured loans are fixed-rate mortgages (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.

The FHA, Federal Housing Administration, has been helping people since 1934. FHA insures loans for lenders against defaults - it does not lend money or set interest rates. Alaska USA Mortgage Company is an FHA-approved lender. Contact an Alaska USA Mortgage Originator today for more information.

Getting started

Once you have met with a loan originator and reviewed the variety of loan options, you can move forward and get prequalified. Your loan originator will review your credit report and explain how your credit affects your borrowing power.

Your loan originator will give you a list of documents that you need to bring in to be reviewed by local underwriters. Common documents requested are:

• Pay stubs for the most recent 30 days
• Complete bank statements for the last two months
• Most recent investment information, such as IRA or 401(K) statements
• Most recent two years tax returns with all supporting documentation such as W-2 forms

Alaska USA may ask for additional items that are required based on the specific loan that you choose based on your financial status or situation.

Don't forget, the choice is yours when it comes to selecting the title and escrow agency, acting as the neutral party for you and the seller.