 |
|
FHA Mortgage LoansIn 1934 when the housing industry was flat on its back, the Federal Housing Authority known as ‘FHA’ was formed to help improve the then current housing conditions. At this time persons were only able to get a mortgage loan for 50 percent of the property’s market value, with a repayment schedule over three to five years and ended with a balloon payment. FHA provides mortgage insurance on loans made to buyers by FHA-approved lenders. FHA insures mortgages on multifamily homes, single family homes, manufactured homes and hospitals and is the largest insurer of mortgages in the world. In the 1940’s FHA Mortgage Loans helped to finance military housing and homes for returning military personnel and their families. In 1965 FHA became a part of the Department of Housing and Urban Development’s (HUD) Office of Housing. FHA mortgage insurance provides a lender with protection against losses incurred as a result of a homeowner defaulting on the FHA mortgage loan. Loans granted by a lender must meet certain requirements established by FHA in order to qualify for insurance coverage. FHA is the only government agency that costs the taxpayers nothing. It operates entirely from it self-generated insurance paid by the homeowners. Much has changed since FHA was created and Americans are now the best housed people in the world. And the FHA loans have contributed greatly to this. FHA loan requirements offer low down payments and no specific credit score requirements. If you are thinking about home ownership but don’t know if you can qualify for an FHA loan then check with a mortgage company who is an FHA approved lender and discuss your situation with them. They will be able to walk you through the whole process.
What you can afford in the way of an FHA mortgage depends on your income, current monthly expenses, credit rating (not credit score), down payment amount and the interest rate. Special FHA loans are also available for teachers and police officers through the Neighbor Next Door program. FHA home loans are easier to qualify for, require a lower down payment, offer a very competitive interest rate and you can generally qualify with less than perfect credit. FHA is a wise choice, so search out a mortgage broker that can offer FHA mortgage loans and discuss your desires with them today. --- End of Article FHA Mortgage Loans --- |
|
