A variety of FHA loan programs are available to American homebuyers. With those programs, there is inherent flexibility which can be used for a potential home buyer with good credit who, along with a small down payment, can buy, improve or refinance a house.

How FHA Loan Programs Work

FHA loan programs do not fund loans for home borrowers; instead FHA loan programs provide insurance for home mortgages. The FHA makes sure that home loans are insured up to a particular amount (depending on the loan and related program) so lenders can give better terms on the mortgage being offered. The assurance will save buyers money, allowing them to purchase a home with little down payment. Borrowers are able to buy more house because, in the eyes of the lender, they are giving a larger down payment.

Different Uses of FHA Loan Programs

FHA loan programs emphasize residential home ownership. The FHA loan program guidelines are created in such a way as to help buyers in getting financing to that all Americans have the ability to qualify for a quality home. FHA loan programs will assist borrowers with the purchase of:

• New and existing homes
• Single family homes
• Manufactured homes
• Townhouses and condos (in approved projects, in which at least 51 percent of the units are owner-occupied)
• 2-3 unit investment properties, as long as the buyer occupies one unit
• Farms, if the residence is lived in by the owner on the property
• Homes in need of rehabilitation, in which loans can cover both the purchase and fixing of the home

Homeowners over 62 years old can also tap into the ‘reverse’ FHA loan program, which allows seniors to use the equity in their homes to get money for their retirement living expenses.

FHA loan program guidelines also allow for existing loans to be refinanced and convert loans into the FHA loan programs or to help existing FHA insured loan-holders to secure better terms.

What to Know About FHA Loan Program Guidelines

There are restrictions and FHA loan program guidelines which determine eligibility and use of FHA loan programs. Some of the basic FHA loan program guidelines include:

• FHA loan program guidelines have loan size limits, which may vary by state and by county. An FHA lender can explain what those limits may be in your area.

• FHA loan program guidelines on the size of a loan are tied to the cost of housing in an area. Size can be as high as $290,000 for single-family homes in some areas.

• These loan limits as set up the FHA loan program guidelines can vary with the area market. A trusted FHA lender will have accurate and recent figures.

• FHA loan programs also allow for home improvement, refinancing and such programs as the Energy Efficient Mortgage.

FHA loan program guidelines have been expanded through recent Congressional action. Some home owners and potential buyers who may not have found FHA loan programs helpful in the past may do so now, through a FHA home loan. For many, the security which comes from working with a FHA lender to get funding through a FHA loan program is the most beneficial and affordable choice for a mortgage.

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This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.