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FHA Loans

We are pleased to announce that we have lowered our minimum credit score standard on all FHA loan products. There are countless reasons why an FHA loan might be right for you, but here at Bank of England Mortgage, we believe that these four features are what really sets FHA loans apart.

Credit Flexible

FHA loans are not score driven. Instead, they are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA loan.

Great Rates and Low Monthly Mortgage Insurance

A distinct advantage of an FHA insured loan, as compared to a conforming loan, is great interest rates and lower monthly mortgage insurance (MI). Depending on the program, standard FHA loan interest rates are usually better than a conforming 30-Year Fixed loan.

Safest ARM Currently Available on the Market

FHA guidelines give you the option of doing hybrid Adjustable Rate Mortgages (ARM), including a 3/1 ARM and a one year ARM that has the lowest adjustment caps of any ARM in the industry.

Variety of Property Types Allowed

While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.

Streamlined Refinance and Assumable Loans

One of the most important advantages of an FHA loan is the ability for the loan to be assumed. This gives the buyer a significant advantage in a high interest rate market. FHA loans are eligible for streamlined refinance, a program HUD offers that allows the borrower to easily refinance the loan to reduce their interest rate and lower their monthly payment.

What are FHA loans?

FHA stands for Federal Housing Administration. A Federal Housing Administration loan provides low-cost insured home mortgage loans that suit a variety of purchasing options. Whether you're buying a home or want to refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, our FHA loans can give you peace of mind with super low closing costs and flexible payment options.

How do I qualify for FHA loans?

To be eligible for Federal Housing Administration loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

What is the cost of FHA home loans?

Interest rates on all home mortgage loans vary according to the economic climate of the country. FHA home loans offer better than standard rates and lower monthly mortgage insurance premiums. Depending on the program, standard FHA home loan interest rates are usually better than a conforming 30-year fixed loan.

Can I use FHA loans for home repairs?

Yes! Simple home improvements can be financed with a Federal Housing Administration loan from Bank of England Mortgage. Roof repair, disability accessibility improvements, flooring refurbishment, or the purchase of new appliances are just a few eligible improvements you could make with FHA loans.

Are FHA mortgage loans assumable and can they be refinanced?

Yes & yes! One of the greatest advantages of our FHA mortgage loans is the ability for the loan to be assumed. This allows the buyer a significant advantage in a high-interest rate market, and affords you an excellent sales advantage over your competition. FHA mortgage loans are also eligible for streamlined refinancing, offering you a lower than standard interest rate, which can lower your monthly payment. Streamlined FHA mortgage loans are an excellent selling feature when you're ready to move up or move on.

FHA 203(h) Loans

Federal mortgage insurance for victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.

FHA 203(h) loans are no-downpayment mortgages and borrowers may apply for 100% financing of the loan. Borrowers are eligible for this program if they have a credit score over 500 and their homes are located in an area that was designated by the President as a disaster area. These mortgages may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of the homeowner. Insured loans may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of the homeowner.

FHA 203(h) loans offers several features that make homeownership easier including no required down payments, up to 100 percent financing.

Program Details
  • 100% Financing
  • Eligible properties include 1 - 2 unit primary residence and FHA approved condos
  • Mortgage Insurance Required
  • 30-year fixed or 5/1 ARMs
  • Seller-paid closing costs permitted, up to 6%
  • Eligibility remains for up to one year from date of declaration
  • All Loans subject to underwriting approval

Contact us today at (251) 301-8518 to get started or start an application today.