Finance of America Mortgage

Finance of America Mortgage Review

Finance of America Mortgage is offered by Finance of America Mortgage LLC, a direct lender founded in 1994 and based in Horsham, PA. Finance of America mortgage are available in 43 states across the USA.

Key Takeaways

• 6 different mortgage programs offered. Finance of America Mortgage offers FHA, FHA 203k, USDA, VA, jumbo, conforming, and conventional mortgages.
• Financing for single-family and multi-family properties. However, Finance of America Mortgage LLC does not offer financing for manufactured homes.
• Refinancing for large mortgages. You can refinance mortgages with balances of up to $2,250,000 with Finance of America Mortgage.
• Non-standard interest rates available. Finance of America Mortgage offers adjustable-rate mortgages, hybrid mortgages, and fixed-rate mortgages.
• Considers personal use and investment properties. Financing available for primary homes, vacation homes, and even investment homes, such as rental properties.
• Charges a prepayment fee. This means you will be charged an additional fee if you repay the mortgage early.
• High maximum LTV ratio. Finance of America Mortgage has a maximum loan to value ratio of 97%, which is higher than average. Most lenders want you to have at least 20% equity.
• Poor credit accepted. Even if you have bad or poor credit, you can apply. Borrowers with a credit score as low as 500 are considered.
• Maximum DTI ratio. Finance of America Mortgage has a maximum debt-to-income ratio of 36%. Your DTI is calculated by dividing your monthly debts (including your proposed mortgage payment) by you monthly income and multiplying by 100.

Finance of America Mortgage Pros & Cons

Finance of America mortgage FAQ

How much can you borrow via Finance of America Mortgage LLC?

Finance of America mortgage allows borrowers to apply for loan amounts of up to $2,250,000. Note that the maximum loan amount you can borrow will also vary depending on the type of mortgage you choose, regardless of the lender you choose.

What is the maximum loan term you can get with Finance of America mortgage?

Finance of America mortgage offers mortgages with terms ranging from 15 to 30 years. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.

What mortgage rates does Finance of America Mortgage LLC offer?

Mortgage rates change daily based on market conditions and vary significantly depending on the loan type and the length of the term. For instance, fixed rate mortgages will typically have a higher interest rate than mortgages with variable rates, and jumbo loans usually have higher mortgage rates than conforming conventional loans. Find the best interest rate available to you by getting quotes from three or more mortgage lenders before choosing a home loan.

Do they charge mortgage origination fees?

Yes, Finance of America mortgage may charge a loan origination fee.

What mortgage programs are available?

Besides conventional mortgages, Finance of America mortgage offers the following mortgage types:

• FHA loans: FHA loans are mortgages insured by the FHA. They offer competitive mortgage rates and have less stringent eligibility requirements. However, borrowers must pay a mortgage insurance premium. For instance, you can apply for an FHA loan with a credit score as low as 580. Co-applicants are allowed and you can qualify for a down payment as low as 3%.
• FHA 203k: An FHA mortgage you can also use to finance home improvements.
• Jumbo loans: Any mortgage with a loan amount above the conforming loan limits set by the Federal Housing Finance Agency ($726,000 as of 2023).
• USDA loans: A zero down payment mortgage loan with low mortgage rates for suburban and rural homebuyers. The USDA doesn't require a minimum credit score, but most mortgage lenders require a minimum credit score of 640.
• VA loans: A zero down payment mortgage or a refinance of up to 120% of the home's value for American military members, veterans, and their spouses. VA loans offer competitive mortgage rates, and don't have a minimum credit score. However, the mortgage lenders that offer them will typically require a credit score of at least 640.

What property usage types does Finance of America mortgage allow?

Some mortgage lenders restrict the type of usage borrowers give mortgaged properties. Finance of America mortgage allows the following property usage types: 

• Primary home
• Secondary homes and vacation properties
• Investment properties and house flipping projects

What is the customer service phone number?

The customer service number for Finance of America Mortgage is (800) 355-5626.

What is the support contact email?

The support contact email for is customerrelations@financeofamerica.com.