FHA Loans from Mutual of Omaha Mortgage

Understanding FHA Loans

Sponsored by the U.S. Department of Housing and Urban Development (HUD), FHA loans are government-backed home loans distributed by private lenders like Mutual of Omaha Mortgage. FHA Loans are often used to fund homes for first-time home buyers, who come to Mutual of Omaha with short-lived or troubled credit history and smaller down payment goals. FHA loans are federally insured, meaning the buyer does not face steep down payment or PMI requirements relative to conventional loans. Mutual of Omaha competes for the best interest rates available on each FHA loan application.

Why Choose FHA Home Loans?

FHA Loan Payment Benefits Financing a home loan is more attractive for FHA loan-eligible applicants. Conventional loan products typically require 10%-20% down on a loan, depending on the buyer’s preference toward PMI. FHA Loans allow qualified buyers the opportunity to purchase a home with as little as 3.5% down.
These government-backed loans also allow qualified buyers the chance to use eligible gift funds toward down payments and closing costs. This means less cash out of pocket for a home, and more in the applicants pocket for other closing fees or their first mortgage payment.

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Credit Benefits with FHA Loans A major goal of the FHA loan is to help first-time home buyers, or those with challenged credit, find an affordable mortgage product. Mutual of Omaha will work with our FHA applicants through the entire process. We will help buyers find a competitive interest rate on an FHA loan.
If you’ve experienced credit trouble, or simply don’t have enough credit history to qualify for conventional options, contact a Mutual of Omaha Mortgage Banker to determine your FHA eligibility.

Qualified FHA loan applicants can put less down and save on closing costs at signing.

FHA Loans vs. Other Loan Products

FHA loans come with several caveat's that make them unique when compared to other government-backed or traditional loans. Play with the table below to compare FHA loans to other loan types!

What are the differences for a loan?

FHA	Conventional
Who Qualifies
Any applicant who meets the minimum credit, income and employment requirements from the Department of Housing and Urban Development (HUD) and Federal Housing Administration (FHA).	Both VA and non-VA eligible applicants who exceed maximum USDA and FHA lending requirements with moderate-to-high income, moderate-to-high credit and strong employment history.
How to Qualify
Contact a Mutual of Omaha Mortgage Banker or fill out this form to get your pre-qualification	Contact a Mutual of Omaha Mortgage Banker or fill out this form to get your pre-qualification
Benefits
Low Interest Low Costs 3.5% Minimum Down Payment Friendly to first-time buyers	Favorable Interest Rates Affordable Costs Avoid P.M.I. with 20% down or more Flexible refinance options available
Available Housing
A property is subject to independent appraisal. Must meet or exceed FHA housing requirements. Cannot exceed county loan limits.	Property subject to independent appraisal. Must meet Mutual of Omaha and loan qualifications Can exceed county loan limits if necessary.

FHA	USDA
Who Qualifies
Any applicant who meets the minimum credit, income and employment requirements from the Department of Housing and Urban Development (HUD) and Federal Housing Administration (FHA).	Applicants in rural areas who fall beneath the median income line of their respective county, and/or require a mortgage to renovate their home or live with a qualifying physical or mental limitation.
How to Qualify
Contact a Mutual of Omaha Mortgage Banker or fill out this form to get your pre-qualification	Contact a Mutual of Omaha Mortgage Banker or fill out this form to get your pre-qualification
Benefits
Low Interest Low Costs 3.5% Minimum Down Payment Friendly to first-time buyers	Low Interest Low Costs No Minimum Down Payment Must maintain property Must demonstrate need
Available Housing
A property is subject to independent appraisal. Must meet or exceed FHA housing requirements. Cannot exceed county loan limits.	Property subject to safety guidelines. Must fall at or beneath median income line in prospective county of residence. Typically reserved for rural properties.

FHA	VA Loan
Who Qualifies
Any applicant who meets the minimum credit, income and employment requirements from the Department of Housing and Urban Development (HUD) and Federal Housing Administration (FHA).	U.S. Military Veterans or Active-Duty service members, with qualifying service records, and qualified spouses as determined by the Department of Veterans Affairs (VA).
How to Qualify
Contact a Mutual of Omaha Mortgage Banker or fill out this form to get your pre-qualification	Apply for a COE on your own, or ask Mutual of Omaha Mortgage to help with the process
Benefits
Low Interest Low Costs 3.5% Minimum Down Payment Limited use Cannot be restored	Low Interest Low Costs No Minimum Down Payment Can be used forever Can be restored
Available Housing
Property subject to independent appraisal. Must meet FHA/HUD housing requirements. Cannot exceed county loan limits.	Any property is subject to independent appraisal. Must meet or exceed VA housing requirements. Can exceed county loan limits.

Regulations and Fees

While the FHA loan is a federal program, the government generally does not make direct loans to applicants. Private lenders, including Mutual of Omaha Mortgage, finance the loan while the Federal Housing Administration with the Department of Housing and Urban Development (HUD) offer an insurance guaranty. This guaranty provides an incentive for private lenders to offer loans with better terms, and protects them in the event of a customer default.

Loan Limits
In most parts of the country, applicants who qualify for the FHA Loan can purchase a home worth up to $314,827 before the 3.5% or 5% minimum down payment. To find out the FHA Loan Limit in your area, give Mutual of Omaha Mortgage a call at 1-800-24-RATES.

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