David Garretson

NMLS # 91798

985-951-2230 x 4

dave@mycrescentcity.com

David Garretson Senior Loan Officer
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FHA Loans

FHA Loans

It's easy to understand why many people looking for a new home are turning to FHA insured loan programs. FHA Loans are insured by the Federal Housing Administration and make it easier for homebuyers to qualify for a mortgage. Those who typically benefit most from an FHA loan are first-time home buyers those who have less than perfect credit.


New Changes in FHA Loans

In response to the growing housing situation in the United States the loan limits for FHA Loans has been temporarily raised. Depending on where you live you might find it even easier to qualify for a FHA loan.

As FHA Loan specialists, we can help you understand any new changes to the FHA loan program. We're here to create a customized solution that works best for you and your family. To learn more call us at 985-951-2230 or contact us via email by clicking here.


How FHA Loans Work

At Crescent City Home Mortgage, we want to help you understand how a FHA mortgage loan works. In all actuality, the Federal Housing Administration (FHA) doesn’t loan any money, they insure it. This means that you’re considered to be a less risky borrower than someone who might not have the backing of the federal government. Our role is to make sure that you qualify for an FHA mortgage and structure our loan to reflect it.

The other pages in the FHA loan center can help you understand more about this unique program. Whether you are trying to determine if you qualify or if you are interested in finding out what kind of documentation you’ll need to ultimately get your loan, our site can provide you the information you are seeking. Additionally we’re more than happy to take your phone calls at 985-951-2230 .

An important resource for considering a FHA loan is the official Housing and Urban Development website. There you can find even more answers to questions and learn more about insuring your loan through the Federal Housing Administration.

FHA Loan Benefits

FHA insured mortgages are some of the best mortgages available to help more people move into the home buying market. The list below to understand some of the most basic benefits of an FHA mortgage.

Can better help you – Because they’re backed by the federal government, lenders are more likely to give you the kind of loan that you need.

Low Down Payment – FHA insured mortgages only require a 3.5% down-payment which makes it easier for those with little to put down. Additionally the 3.5% can come in the form of gifts, unlike many other loan programs.

Lower Credit Borrowers Qualify – Since FHA insured loans are backed by the government, those with a poor credit history have an easier time obtaining loans.

Better Interest Rates – With the backing of the government, FHA loans typically have a better interest rate than most traditional mortgage loans.

Better Home Stability – The FHA has programs designed to help homeowners keep their homes during hard times and prevent possible foreclosure. It's always best practice to try and work out problems with your lender before a situation arises.

FHA Loan Checklist

When you're applying for an FHA loan the following list of documents will help expedite the process. We are here to help you step by step to understand any part of the FHA loan process.

Employment Info

  • Past two years completed tax returns.
  • Past two years W-2's, 1099's and any other necessary tax forms.
  • One month worth of newest pay stubs.
  • Self-employed will need three years tax returns and YTD Profit & Loss Statement.

Savings Info

  • Past three months full bank statements for all accounts.
  • Any recent statements from investment accounts (retirement, 410k, mutual funds, etc.).


Personal Info

  • Driver's License or other official State identification.
  • Social Security Card.
  • Any Divorce, Palimony, Alimony Documents.
  • Green card or work-permit (if applicable).


FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans get into homes.

A FHA insured mortgage is easy to qualify for, can be obtained with less than perfect credit, costs less, and requires a smaller down-payment.

A great source for FHA forms and information is https://www.hud.gov/topics/buying_a_home.

The loan limit across the country is different. Click here to see limits in your area.

Yes. However, be sure to check the pre-payment section of your contract before signing.

Yes. Through the Energy Efficient Mortgages Program, you can finance 100 percent of the cost of making your home more energy efficient.

Yes. The recently created FHASecure is one of the ways to help you refinance your current home loan. 

Yes. Refinancing maybe a great option. Our team can discuss your options to determine what works best for you.

The recommended debt-to-income ratio for a FHA loan is 30%.

Absolutely. You can assume an existing FHA loan or allow a buyer to assume yours.

Yes. In fact FHA mortgages often require you to carry mortgage insurance for longer than most conventional loans.

Yes. However you might be required to fix certain problems in the home before you can get the full loan.

FHA Loan Common Questions

FHA Qualifications

There are fewer restrictions for FHA loan qualification in comparison to a standard mortgage loan. Qualifications for an FHA loan are:

These are the basic qualifications for an FHA loan through {COMPANY_NAME}, as you can see FHA loans can be to qualify for. To learn more contact us or apply online to get the process started.



FHA Streamline Refinance

What Is An FHA Streamline Refinance?

If you already have an FHA mortgage, then you may qualify for a FHA Streamline Refinance. An FHA Streamline Refinance is a great way for a borrower with an existing FHA backed mortgage to reduce their interest rate, reduce their payment or possibly both.

Some facts about an FHA Streamline Refinance:

  • No Appraisal is Required – Because your loan is already guaranteed by your existing FHA loan, the FHA will allow you to use your home’s original purchase price as your home’s current value.
  • You can still refinance even if you are underwater – Even if you owe more than your home is worth, you may still be able to get an FHA Streamline Refinance loan.
  • There is no FHA prepayment penalty to worry about.
  • FHA Streamline refinance rates are the same as “regular” FHA loan rates.
  • Employment verification is not required with an FHA Streamline Refinance – In other words, no pay stubs, no W-2s or tax returns are required for approval.
  • Income verification is not required with an FHA Streamline Refinance
  • Credit score verification is not required with an FHA Streamline Refinance – instead of checking your credit, your payment history is used to determine if you qualify or not. You must have no late payments in the last 90 days and only one or less late payment within the last 12 months.


The Refinance Must Have A "Purpose"

Streamline Refinance applicants must demonstrate that there's a Net Tangible Benefit in the refinance or in other words a legitimate reason for refinancing. For Example:

  • Refinancing from an Adjustable Rate Mortgage to a Fixed Rate Loan.
  • or Reducing your principal + interest + mortgage insurance 5% or more.


Your Loan Balance May Not Increase To Cover The New Loan Costs

The FHA prohibits increasing the loan balance of a streamline refinance to cover associated loan charges. The new loan balance may increase, but only by the cost of the Upfront Mortgage Insurance Premium. All other costs -- origination charges, title charges, escrow -- must either be paid by the borrower as cash at closing, or credited by the loan officer in full.

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.

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