FHA Loan Guide

  • Michelle ConstanceAuthor
  • 10.01.2014Date
  • Mortgage TypesCategory

FHA Loan Guide

Has home ownership alluded you due to financial restraints? An FHA loan might be the answer to finding the funding you need to become a home owner. FHA loans have been helping people become homeowners since 1934. The Federal Housing Administration (FHA) insures mortgage loans, so that a mortgage lender can a) feel more secure about offering you funding and b) offer you a better deal. With an FHA Loan you could expect low down payments, low closing costs, and easy credit qualifying in comparison to many other types of mortgage funding.

An FHA Loan is a US Federal Housing Administration mortgage insurance backed mortgage loan, which has been approved by an FHA approved lender. Designed as a type of federal assistance, FHA Loans have historically assisted lower income Americans to borrow funds for home purchase, which they would otherwise be unable to afford. The FHA program was created during the Great Depression of the 1930s, when foreclosure rates and loan defaults rose by incredible amounts, The program was designed to provide mortgage lenders with necessary insurance.

With an FHA Loan your down payment can be as low as 3.5% of the purchase price. Often times many of the fees and closing costs are worked into the price of the loan. FHA Loans are available on 1 to 4 unit properties. If you’re interested in purchasing a “fixer-upper” an FHA Loan could be right for you. Your total costs can be included inĀ one loan, the same applies if you are looking to remodel, repair, or refinance your current home. If you are thinking about making your home more energy efficient, you can include the costs of energy improvements to your FHA Energy-Efficient-mortgage loan.

Request a free FHA mortgage quote from Home Sweet Lender today!

 


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