Mississippi FHA Loans

Mississippi's FHA (Federal Housing Administration) loans have now become more flexible allowing mortgage and home loan access to first-time home buyers, low to moderate-income borrowers, and customers with discrepancies in credit worthiness and reliability for loan eligibility. Above all, thanks to the Home Mortgage Disclosure Act, Mississippi FHA customers need not worry about discrimination on mortgage eligibility by any lender or mortgage company.

There is security in Mississippi's FHA loans

Home buyers and homeowners in Mississippi are can secure a low rate, FHA loan through 1st Continental Mortgage at great rate and great term whether you're doing a streamline refinance or wanting to purchase a home using a Mississippi FHA loan or traditional mortgage financing.

One of the initial and important steps used by 1st Continental Mortgage prior to recommending a Mississippi FHA loan program is estimating a clients gross monthly income and debt ratios. The 1st Continental Mortgage websote provides mortgage loan calculators which you may use to estimate the loan amount financing which best meets your payment ability. Though rates vary by mortgage loan product types, our mortgage calculators are very reliable for determining future loan payments. FHA loans in Mississippi follow the following calculations for a customer's maximum monthly payment amount:

1. Income Ratio Method - Using this method, the home buyer must multiply his or her gross monthly income by 29%. This amounts to the home buyer's maximum monthly mortgage payment.
2. Total Debt Ratio Method - Using this method, the home buyer deducts the summation of his or her outgoing monthly payments, including payments for owned vehicles, credit cards, child support, etc., including your proposed new mortgage payment, from 41% of his or her gross monthly income. This amount translates to the home buyer's maximum monthly home price or the P.I.T.I (Principal, Interest, Tax, and Insurance) payment.

At 1st Continental Mortgage, we have flexibility in underwriting and in many instances can exceed ratios where credit quality other factors show a consistent ability to meet current and proposed payments. We are a loan company that offers the best FHA loan package.

A Mississippi homeowner or home buyer's choice of a Loan Company or lender can spell the difference between high costs or significant savings. To obtain the best FHA loan packages, the following are some things for we at 1st Continental Mortgage want you to consider:

1. APR (Annual Percentage Rate) - Different lenders have different APRs. The fact is, shopping a loan by APR is exceptionally risky as different companies factor in different costs into their APR calculation.
2. Interest rates - The lower the interest rate does not mean a better deal. If you finance your home into the wrong loan, it will cost the typical home buyer over 20K in costs and lost money to correct. At 1st Continental Mortgage we know this, and do everything possible to understand your needs and place you in the right loan, the first time.
3. Turnaround and processing time - Usually ignored, but most-of-the-time critical, turnaround time may affect actual payments and cause you to lose that "Low Rate" some other lender promised. If you're getting excessive delays, there is a good chance you either have a problem loan, a novice L/O (Watch out for getting put into the WRONG loan program) or the mortgage company can't deliver the interest rate the loan officer promised. Processing time usually takes 30 days upon mortgage application dependent upon how quickly documentation is supplied and we can close in as little as a few days in perfect situations.
4. Life period of the loan - It is best for the homeowner and home buyer, especially first-timers, to give serious consideration to the Mississippi FHA Loan. As this is your first home, the FHA program has many features that protect you from losing your home in cases of short term hardships. These protections you won't get from traditional conventional financing!

Some benefits in Mississippi FHA loans

Aside from the security that the Mississippi FHA Mortgage provides, there are other beneficial features of Mississippi FHA loans. Down Payment Assistance, is allowed. Guidelines are offered to protect homeowners and home buyer, including first-time FHA loan borrowers. Absolutely nono prepayment penalties are allowed on your Mississippi FHA loan. The FHA program provides both fixed rate and adjustable rate options. A minimal downpayment of 3% of the loan is all that is required. Down payment assistance may be used to help finance closing costs or a seller can in fact pay all of your closing costs up to 6% as well.

Eligibility for down payment assistance grants is simple. The home buyer's income must not exceed preset County Income Limits. Other basic FHA loan guidelines are followed in applying for local down payment assistance programs to be used with your FHA loan.

Most Mississippi FHA loans follow a variety of insurance policies. The MIP (Mortgage Insurance Premium) is almost always included in most Mississippi FHA loans to provide back up or security to FHA lenders in the event of the borrower's inability to pay the mortgage. The reality is, the monthly MIP fee is approximately half traditional PMI and you get all of the Mississippi FHA loan benefits in return.