guidelines and programs

Why are our rates so low?

We decided to work on lower pricing margins than other mortgage lenders. In the mortgage industry we feel that it's advantageous for us to obtain a higher volume of business captured by offering our customers better deals.
By lending only to qualfied borrowers, and staying away from subprime and risky lending practices, our mortgages are more valuable to investors when transferred on the Secondary Mortgage Market. This allows us to price our mortgages more competitatively when we originate them with our costumers.
We have less overhead expenses than most banks and mortgage lenders. We specialize only in originating residential mortgages and we centralize our entire processing out of one location. We pass our overhead savings to you.
We are not a mortgage broker so there is no middleman and no middleman fees.

What are the advantages of a lower mortgage rate?

A lower mortgage rate will mean you'll pay a lower monthly mortgage payment.
With a low mortgage rate you pay less interest to the bank and keep more of your hard earned money in your pocket. Over the long life a mortgage even slightly lower rates can add up to interest payment savings of 10s and sometimes even 100s of thousand of dollars.
Home equity accumiltates quicker at lower rates. When you sell your home or want to payoff your mortgage early you'll owe less money to the bank. If you refinance your home you'll have a stronger equity position that will help get you a better deal.

Will my mortgage with HFA have a Prepayment Penalty?

No loan programs we offer have prepayment penalties. Any additional payment you submit to your loan servicer above the minimum required monthly principal and interest payment will goe directly to reducing your mortgage's principal balance. You will not be penalized if you payoff your mortgage early.

How do I choose which mortgage program is best for me?

Every borrower's situation is different but HFA's Loan Originators are experts at choosing the mortgage program that's best for you. Give as much information to your Loan Originator as possible. You can be sure he or she will find our program that fits your needs perfectly. (Click here to learn more about all of our programs)

What are our Credit Score requirements?

To obtain any mortgage with us your Credit Score should be at least 660.

How low can my down payment be?

Your down payment on a new home can be as low as 5.00% of the purchase price.

What supporting documentation will HFA require?

Any reputable mortgage lender will require that you submit supporting documentation before your loan is allowed to close. These guidelines are determined by the Federal Government, State Governments, Fannie Mae, Freddie Mac, as well as Home Finance of America and our secondary market investors.

What if I have more than 1 mortgage on a property I want to refinance?

You have two options:

Payoff all the mortgages on your property and consiladate them into one low fixed rate mortgage with one monthly payment.
If you only wish to refinance your primary mortgage, you may be able to subordinate any second liens on your property to leave them the way they are.

Do I need Title Insurance?

Yes, all mortgages whether they be a refinance or purchase will require a Title Insurance policy to be issued. Title insurance is obtained through an independent third party that HFA will be happy to select for you if you'd like.

How high can my Debt-to-Income (DTI)Ratio be?

Generally speaking, your Debt-to-Income (DTI) Ratio should be less than 45%.

What's Private Mortgage Insurance (PMI) and will it be required on my mortgage?

Private mortgage insurance is generally only neccessary when there is less than 20% equity in the subject property or the Loan-to-Value Ratio (LTV) is greater than 80%. If you are purchasing a new home and placing a down payment of less than 20% of the purchase price a lender will require you tom obtain mortgage insurance. If your are refinancing and the value of your home has dropped ask a loan officer if you qualify for the Making Home Affordable program to avoid paying mortgage insurance.

Is my home considered a Primary Residence, Second (Vacation) Home, or Investment Property?

A primary home is where you reside most of there year and commute to and from work on a regular basis. A vacation or second home is another property owned by a borrower in an area considered as a reasonable vacation destination. A second home is not or was not used to collect rental or any other form of income for profit. An investment property is used to profit from typically by collecting rent.

What's HFA's lowest loan amount?

HFA is not able to offer a mortgage of less than $50,000.

What properties does HFA finance?

Single Family Residences
Condominiums
Attached properties, Townhomes, or Rowhomes
Duplexes

What properties does HFA NOT finance?

Mobile Homes
Manufactured Homes
Co-ops
Properties with more than 2 units
Commercial, Multifamily or Mixed Use
Land

What if my home is being renovated or under construction?

HFA is not able to finance a property that's undergoing significant renovations or construction. An appraiser will be out to inspect both the interior and exterior of the subject property so if there is any damage that needs to be repaired or pending renovations please make your Loan Originator aware.

What if I declared bankruptcy or foreclosed on a property?

If you have declared bankruptcy or foreclosed on a prior mortgage HFA will not be able to offer you financing until 4 years after the until the bankruptcy has been discharged or 7 years since the property foreclosure.

At Home Finance of America our goal is to offer you low mortgage rates and the best service available. Call us toll free at 800-358-LOAN (5626). Or, Apply Online using our secure server today. It only takes minutes and a Mortgage Professional is available to help you 7 days a week!