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What Is A FHA Loan?
Wow! FHA Housing Loans have become very popular in the last few months. The reason for such regain popularity is it is much harder to get conventional loans or low down payment insured conventional loans.
This purpose of this site, FHA-Loans-Information.com, is to provide you with articles and information from experts that will help you to determine if a FHA Housing Loan is right for you.
First, we should start with the basics of what is a FHA Loan and list of the benefit of a FHA Housing Loan.
What Is A FHA Housing Loan?
One of the most common misinformation about FHA loans is that they are government loans. FHA Housing Loans are loans insured against default by the FHA. The FHA guarantees that a lender (bank or mortgage company) will not have to write off the loan if the borrower should default. Because of this guarantee, lenders are willing to make mortgage loans at more favorable rates and low down payments.
Who Can Get A FHA Housing Loan?
Almost anyone can get a FHA Housing Loan subject to FHA loan qualifications. Although there are no income limits, there are limits on how much you can borrow. There are limits to the size of a FHA Housing Loan based on home prices in your area of the country.
To get a FHA loan you need to have decent credit. Your credit doesn’t have to be perfect, but you can’t have bad credit and hope to get a FHA loan.
What Are The Benefits of a FHA Housing Loan?
There are many benefits to a FHA loan which and we will just touch on a few here. You will be able to find more benefits in some of the articles on this site.
1. Easier To Qualify For Loan.
The lenders are willing to give you loan terms that makes it easier for you to qualify because the loan is insured by FHA.
2. You Can Get A FHA Loan With Average Or Below Average Credit.
Your credit history or score does not have to be perfect to get a FHA Mortgage. Even if you have had credit problems such as a bankruptcy, it is easier to qualify for a FHA Housing Loan than a conventional loan.
3. Low Down Payment.
This is one of the biggest drawn to FHA loans, especially since the mortgage foreclosure problems that happened in late 2008 and early 2009. FHA loan down payment is currently 3.5%. This down payment can come from a family member, employer, or charitable organization as a gift.
4. Lower Interest Rate.
Because the Federal government insures FHA loans, they have competitive interest rates.
There are other benefits of FHA Housing Loans which you will find in some of the great articles on this site. You will also find some of the drawbacks of having a FHA loan.
There are many different types of FHA loans including loans for fixer-uppers (203K), for senior citizens (Reverse Mortgages), FHA has financing for mobile homes and factory-built housing, and FHA Energy-Efficient Mortgage.
Browse the articles on FHA-Loans-Information.com and find the FHA Housing Loan suitable for your mortgage needs!