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The Facts About Popular FHA Loan Programs: An Interview with Lou Bolella of the McCue Mortgage Company

By Lou Bolella

Tell us a little bit about your company and the services you offer.

The McCue Mortgage Company (est. 1949) is a mortgage lender serving the state of Connecticut with our main office in New Britain, CT. We are a full-service lender serving both retail and wholesale clients. Our product line includes conventional loan products and government loan products such as FHA, VA, USDA and CHFA programs (focusing on first-time homebuyers). I am on the wholesale side of the business, which establishes relationships with quality mortgage brokers in Connecticut, helping them with their needs by offering a full product line and a knowledge base for the products we offer.

Can you briefly explain what an FHA home loan is?

The FHA mortgage is a mortgage insurance program that offers protections to the lender in the case of a borrower's default. The protection (insurance) is offered because the FHA mortgage program allows for more lenient lending guidelines such as a 3.5% minimum down payment, expanded repayment ratios and the ability to combine the FHA insured 1st mortgage loan with qualified 2nd mortgage programs covering the borrower's down payment and closing cost needs to name a few.

Who should consider an FHA mortgage and how do people qualify?

Borrowers with little to no down payment or who can obtain a gift from a family member for the transaction (or borrow through a qualified program). Borrowers with less than stellar credit. Borrowers with a non-occupant co-borrower (family member) to assist them in obtaining qualification to buy a home. These are just a few examples.

What are the basics of the standard 3.5% down payment program?

As mentioned previously, a borrower would need as little as 3.5% down plus closing costs to qualify for an FHA loan and these funds can be borrowed through a qualified program or can be gifted to the borrower from a family member.

When should people consider applying for the FHA 203k Streamline Rehabilitation home loan?

The FHA 203K streamline rehabilitation loan incorporates a construction/repair element to the basic FHA loan, providing the money needed to either repair items such as a roof, heating system windows, etc., and/or update certain aspects of the property.

What are HUD-owned properties?

HUD owned properties are homes that have been foreclosed on by HUD and offered for resale by HUD.

What are the benefits and requirements of an Energy Efficient Mortgage?

An FHA Energy Efficient Mortgage has expanded qualifying ratios for properties meeting FHA prescribed energy efficient guidelines and allows the cost of the energy efficient improvements (completed) to be financed in the loan.

What's the best way for people to get in contact with you and your company?

Contact me at lou@mccuemortgage.com or on my cell at 860-989-7946.

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