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.

FHA Loan Programs: How They Work

FHA loan programs do not provide the funding for a home borrower to get a home; instead the FHA loan programs provide insurance for home mortgages. The FHA insures these loans up to a certain amount, depending on the loan and program chosen by the borrower, so that lenders can give the mortgage borrowers the best terms available. This saves the buyers money, so they can buy a home with little money down and a more expensive property because in the eyes of the lender the borrower is giving a larger down payment.

Using FHA Loan Programs

FHA loan programs emphasize residential home ownership. FHA loan program guidelines are made to help buyers in obtaining loans so that more and more people can qualify for the purchase of a nice home. FHA loan programs can help get people into:

* New and existing homes

* Single family homes

* Manufactured homes

* Townhouse/condominium units (in approved projects where at least 51% of units are owner-occupied)

* 2-3 unit investment properties, as long as the owner will occupy one unit

* Farms—if residence occupied by owner exists on property

* Homes in need of rehabilitation (loans can cover the cost of both purchase and improvement)

Because of the FHA’s ‘reverse’ loan programs, home owners over age 62 can tap into the equity they have accumulated over the years and use it to take care of the money for their retirement living.

FHA loan program guidelines also allow for home loan refinancing on existing loans. Existing loans can be converted into FHA loan programs. Existing FHA insured loans can be refinanced for better terms.

FHA Loan Program Guidelines: Things to Know

There are some restrictions and FHA loan program guidelines that determine eligibility for FHA loan programs. Some of the FHA loan program guidelines to know about:

* FHA loan program guidelines limit the loan size. These vary depending on the state and county in which you live. For more information, find an approved FHA lender.

* FHA loan program guidelines for size are dependent on the cost of housing in your area. These can go up to $290,000 for single-family homes in some cases.

* FHA loan program guideline sets loan limits that can also vary by market. Again, check with a FHA lender in your area for more information.

* FHA loan programs do allow for home improvement and refinancing. This include the energy efficient mortgage.

FHA loan program guidelines have been recently expanded by Congressional amendments, which may mean that borrowers who didn’t find a FHA loan program to suit them in the past may now have something better available to them. When looking at benefits, it is best to work with an FHA lender to obtain the FHA loan program that best suits you and you home mortgage choice.