www.FHAonline.US The FHA Mortgage loan program has evolved into one of the most powerful refinancing tools available for homeowners looking to refinance into a secure fixed rate mortgage. Homeowners who have adjustable rate mortgages, less than perfect credit, wanting to consolidate debt or make home improvements will find the FHA mortgage loan program the perfect vehicle. Call us today to become approved for the FHA Mortgage Program at (800)922-3210 or apply online at http
mortgage-investment.blogspot.com FHA Mortgage Loan
FHA mortgage lenders can offer you several different options when it comes to loans for those who are either low income or don't have a very good credit score. It's always a good idea to shop around for different types of loans when you consider purchasing a home.
What is an FHA Mortgage?
An FHA mortgage is a mortgage that is guaranteed by the Federal Housing Authority, or FHA. The FHA guarantees mortgages under certain conditions in order to assist homebuyers in their purchase. The FHA doesn't actually give you the loan, so you would have to go to a regular bank that works with the FHA to get approval for the loan.
Why Get an FHA Mortgage?
An FHA mortgage has several advantages over a typical home loan.
First, you generally have to have less of a down payment for an FHA mortgage. Down payments act like insurance for the banks. If you default on your mortgage then the down payment typically ensures that there is enough equity in your home so that the bank will not lose money on a foreclosure.However, this is not as great of a concern with an FHA mortgage because, since the mortgage is insured, the bank is going to get its money in the event of a foreclosure. Another benefit of an FHA mortgage is that they often have a lower interest rate than traditional loans.
Again, because the bank doesn't have to account for potential losses from foreclosure, the bank can charge a lower interest rate and still make their money. The benefactor of these financial decisions is you, the new homeowner.
These advantages will generally allow you the opportunity to buy a home sooner (because of the smaller down payment) at a lower cost (because of the lower interest rate) than you would through a typical home loan.
Who Qualifies for an FHA Mortgage?
There are several criteria for getting an FHA mortgage.
The first, as with any mortgage, is that you meet all traditional home loan criteria. Credit worthiness, gainfully employed, etc. criteria need to be met just as if you were getting a standard home loan.However, with an FHA home loan some of these conditions are relaxed. Credit worthiness, for example, is not as strict with an FHA home loan. As mentioned before, down payments do not necessarily have to be 20% for an FHA home loan.
The down payment on a mortgage backed by the FHA can be as little as 3.5%. For a $ 250,000 home that is a down payment of $ 8,700. While this is a significant amount of money, it is far less than the $ 50,000 that would be due for a loan requiring a 20% down payment.
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