The Federal Housing Authority (FHA) insures loans against default, protecting both lenders and borrowers. It neither makes loans directly nor sets the interest rates on loans it insures. FHA insured loans can be used to purchase new or refinance existing 1-4 family homes, condominiums, or mobile or manufactured homes on a permanent foundation.
Many excellent reasons exist to select an FHA mortgage, particularly if you fit one of more of the following qualifications:
* you are a first-time homebuyer;
* you are unable to offer much of a down payment;
* you would like to have the lowest possible monthly mortgage payments;
* you have concerns regarding monthly mortgage payments increasing at some point;
* you have concerns regarding the consequences of falling behind on your monthly mortgage payments;
* you have concerns about even being able to qualify for the loan in the first place;
* your credit is less-than-ideal;
If any of those factors apply to you, then an FHA mortgage might be just thing for you to apply for. This is because FHA mortgages are insured, offering several protections and benefits otherwise unavailable to you through most other loan packages.
The benefits of an FHA mortgage include the following:
* Lower Rates: Since it's the Federal Government insuring FHA loans for the lenders, FHA mortgages typically offer interest rates considerably lower than the norm. For this reason alone, it is always worth comparing all other loans available at any given point in time against FHA-insured loans.
* Less of a Down Payment: FHA mortgages can be obtained with only 3% down and, unlike most other mortgages, permit the down payment come in the form of a gift from employers, family members, or charitable organizations.
* Easier to Qualify: As FHA mortgages are insured, lenders are generally far more willing to offer loan terms and qualifications that are easier to meet.
* Lower Credence Given to Credit: FHA loans are ideal for people with poor or less-than-perfect credit, as even people who've suffered credit and employment challenges (including bankruptcy) can still qualify for one.
* More Protection: The FHA was formed in 1934 to help people buy and keep their homes, and they're not about to watch the homeowners they help then lose those homes to foreclosure. Rather, the FHA offers numerous options to FHA mortgagees in a bind, a boon most conventional loans don't come close to.
Author Resource:-
Somerset Mortgage Lenders has been in business since 1979. Whether you are looking to refinance your mortgage, consolidate your debt, improve your home, we can help. Call us toll-free at 1-800-675-9783 or visit us online.
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