FHA Makes Home Loans More Affordable..

First Capital Group specializes in making every aspect of the Federal Housing Administration loan product available for you. Our home loan experts know the ins and outs of every FHA offering.

What Are FHA Loans?

 The Federal Housing Administration (FHA), is an agency of the federal government that insures private loans made by lenders for new home purchases, rate/term refinancing, and cash out refinances.

Are FHA Loans Available to Only Select People?

NO, unlike VA loans which are government loans only available to eligible veterans,  FHA loans are government loans available to anyone who qualifies.  However, similar to a VA loan FHA loans differ from the conventional loan options that are available in the market today..

How Are FHA Loans Different Than Conventional Loans?

The best way to sum it up is buying power.  Because FHA loans require you to pay mortgage insurance they allow you to borrow more towards the equity of your home than conventional loans allow.   For example conventional loans only allow you to borrow 80% of the homes appraised value whether you are buying a home, consolidating debt, or just simply trying to refinance to a lower rate.  No matter the circumstance you are capped at borrowing 80% of the homes value.  Let’s take a look at your borrowing limits on the three most commonly used FHA loan products.

FHA Home Purchase

FHA allows you to borrow up to 97% of the purchase price. This means you would only have to put down 3% compared to the 20% that a conventional loan would require

FHA Cash Out Refinance

FHA will allow you to borrow up to 90% of the purchase price. Depending on your credit score conventional loans will let you borrower between 70% - 80%

FHA Streamline Refinance

If you currently have an FHA loan that you are eligible to do an FHA streamline. This program does not require an appraisal. No matter what the market value is, FHA will always allow you to refinance into another FHA loan. Conventional rate and term refinances will still only allow you to borrow up to 80% of the appraised value.


 

There are many advantages in using an FHA loan program to accomplish our home mortgage needs. Contact us or Give us a call today (808) 728-9999 and we would be more than happy to answer any other questions you may have, and see if a hawaii FHA loan is the right fit for you.