In Indianapolis, we do a TON of FHA loans. Actually, nobody in the United States closes more FHA loans than we do, but what exactly do we mean when we say that? An FHA loan is actually a mortgage loan backed by the Federal Housing Administration’s mortgage insurance. They are a federally assisted program that allows families to move into a home with minimal down payment. Because of this, in Indianapolis all that’s required to purchase a home is a 3.5% down payment.
The program goes back to the Great Depression and was initially intended to both provide banks with insurance and help homeowners and new buyers when the rates of foreclosures and loan defaults were steadily increasing. FHA now works primarily for those that can’t afford a down payment, or won’t qualify for private mortgage insurance (PMI). Essentially it’s an insurance policy that guarantees the loan. We also use FHA for refinancing as well.FHA now does about half of all refinancing. Borrowers can now obtain up to 97.5 percent of the value of the house as opposed to a maximum of 90-95% for a conventional loan. FHA rates are also lower than traditional loans. It’s the same rate depending on credit score or amount or percent. A conventional loan has “adjusters” on the loan, changing the rates and percentages. We actually underwrite FHA in house, as we are a Direct Endorsed FHA Lender. Unlike us, mortgage companies that gave up their FHA endorsement status during the early 2000’s when they weren’t being used extensively, have issues becoming an approved FHA lender again, while we maintained our FHA status so that we could continue to underwrite and close FHA loans.
Our process for home loan approval allows us to quickly process and approve Indianapolis FHA loans for families, giving them a way to move into their dream home and establish their lives. Since 2002 we have closed over $500 million in FHA loans for families.
Whether you’re looking to purchase a new home or refinance one in Indianapolis, Carmel, Fishers, Noblesville, Greenwood, Lawrence, Westfield, Plainfield, Zionsville, Franklin, or anywhere in the Indy and surrounding areas, call or apply online at www.thehomeloanexpert.com
Ryan Kelley
The Home Loan Expert
The Home Loan Expert
