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Buy or Refinance Your Home Today
Why FHA-Insured?
| More Flexible Qualification Process- We Can Work with Most Credit Situations |
Low Down Payment - Save Your Money for Improvements!
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Low Interest Rates - FHA Offers Almost Identical Interest Rates To Every Borrower Regardless of Credit History
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FHA loans have been helping people become homeowners since 1934. In 1965 the Department of Housing and Urban Development (HUD) was formed. Within HUD operates the Federal Housing Administration (FHA), which has the primary responsibility for administering the government home loan insurance program.
This program allows a first time home buyer who might otherwise not qualify for a home loan to obtain one because the risk is removed from the lender by FHA who insures the loan for the lender.
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The most popular FHA home loan program for a first time home buyer is by far is the 203(b). This is your standard fixed rate loan for 1-4 family owner occupied houses and only requires a minimum of 3 1/2% from the borrower. This loan also permits 100% of their money needed to close to be a gift from a relative, non-profit organization, or government agency.
Many people make the mistake and assume that FHA loans are only available for first time home buyers. This is not true. FHA loans are available to anyone, whether your first or fifth home and can be used to purchase a home or refinance a home. If refinancing a home the current loan DOES NOT have to be an FHA loan.
FHA Loans make a lot of sense for many borrowers. Especially if one or more of the following apply to you:
- You're a first time Homebuyer
- You don't have a lot of money to put down
- You want to keep your payment as low as possible
- You're worried about qualifying due to credit issues
- You had a recent bankruptcy
- You have a manufactured or mobile home
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An FHA -Insured loan offers many benefits and protections that you won't find in other loans including:
Lower cost: FHA loans have competitive interest rates because the HUD insures the loans for lenders. This allows the lenders to take the risk and be more competitive when lending.
Smaller down payment: FHA loans have a low 3% down payment and the money can come from a family member, employer or charitable organization as a gift. Most other loan programs don't allow this.
Easier qualification: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.
Less than perfect credit: You don't have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.
The FHA does not give money to people for a home and it does not set the interest rates on mortgages it insures. FHA insures loans for lenders against defaults.
You may use an FHA-insured mortgage to purchase or refinance a new or existing 1-4 family home, a
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