Since the administration of the FHA loans in 1934, a lot of families have obtained their dream homes and lived in it happily ever after. FHA loans are special types of loans provided by the government, more particularly the Federal Housing Administration. The main features of these loans are its low down payment schemes, low closing costs, and fairly easy credit qualifications.
FHA loans require for as low as 3.5% down payment for the property. If the purchase price of your chosen home is $100,000, you only have to pay for $3,500 outright to avail of it. Indeed, an a loan of this type is a very convenient way to own the property of your dreams.
It is also possible to purchase a home and then remodel it. The total costs of buying and remodeling can be added to the loan to make in all-in-one, consolidated mortgage. This way, you don't have to put a mortgage upon purchase and then request for a second loan to facilitate renovation. With this fix-upper feature of this type of loan, you can purchase and rebuild your dream house at the same time.
Even seniors can be benefited from these loans. Seniors have immediate needs for hospital and medical care. If this is the case, they can use their properties to avail of a type of FHA loan called Reverse Mortgage. This program allows the senior homeowner to convert a portion of their property's equity into cash.
FHA loans are insured loans that would greatly benefit homebuyers, especially the first-timers. First-time homebuyers are advised to consult with the agency when buying properties so that they can be guided accordingly. FHA has minimal requirements for first-time home buyers, unlike established lenders that usually require an individual to have purchased several properties prior so that they can use his history as reference before they approve any other type of loan.
Aside from the low down payment scheme, these loans also provide for the lowest monthly payment required on a house. The interest and monthly mortgage may also be fixed or adjustable. Even so, you don't have to worry about the dues going up unexpectedly over time. The FHA qualifications when availing of a loan are very simple as well. FHA loans can be granted to individuals even if they don't have a perfect credit standing.
FHA also keeps better measures in place to keep your home within your possession even if you're encountering financial difficulties. The agency has options other than foreclosure in the event that you can't pay for the mortgage regularly. FHA loans are applicable to 1 to 4-unit homes and condominiums, including mobile homes on permanent foundations. FHA loans provide for adjustable loan rates and rehabilitation schemes designed to help a homeowner keep his home even during bad times.
FHA loans are the perfect options for home buyers who were turned down by banks and similar financial institutions because of their bad credit history. FHA loans strive to allow every American family to own a home that is comfortable enough without crippling their financial status. This is achieved through lower interest rates and longer mortgage terms.
Sam L
Mortgage expert for over 15 years!
mortgageadvicepro.com mortgageadvicepro.com
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