FHA Loans
Looking for a new home but nervous about high monthly payments? Set your fear aside and follow the golden path to your dream home with FHA government home loans.
Maybe you like that cute little bungalow with the red shutters or adorable colonial with the white picket fence. Each of us has that ideal dream home in mind. Thankfully, FHA government home loans make acquiring your dream house as easy as 1-2-3. There are many different FHA loans that will help you make your dreams a reality.
FHA Home Loans
An FHA home loan is issued by the federally qualified lenders and insured by the Federal Housing Administration (FHA). The FHA is a branch of the department of Housing and Urban Development. It was during the great depression of the 1930s that the FHA loan program came into existence. Seeing an increase in the number of foreclosures and defaults, it was imperative to provide lenders with adequate insurance.
FHA Home Improvement Loans
What makes FHA home improvement loans popular is the lack of liability on part of the borrower. The FHA loan is insured against the borrower. The FHA makes a commitment to pay the lenders, if the borrower withdraws his liability to pay back the FHA loan. In other words, FHA takes the responsibility to pay off the FHA government home loan, if the borrower defaults. In this case, FHA charges a small fee to the borrower to cover the cost of the insurance.
FHA Home Loans have traditionally been very attractive to borrowers with low or moderate income. But, over the years, FHA loans have been attractive to a wide variety of borrowers. Other people who can benefit from the FHA loans include borrowers:
- With disputed credit history
- Residing in rural or highly urbanized areas
- With high loan-to-value ratios
- Facing a high number of other monthly debt payments
- Who are first time home owners
More recently, due to a downturn in home sales, a tightening credit market, and increased FHA home improvement loan limits, FHA loans have become the loan of choice for many American families.
FHA loans - Purchase
As unlikely as it sounds, your down payment with an FHA loan can be as low as 3 percent. Compare that with up to 20% with a conventional mortgage. Does this give you a resurgence of hope and optimism? It definitely gives more people in middle America a chance to experience the dream of homeownership.
FHA Governement Home Loans
Getting FHA government home loans is not a difficult process. Here are just a few of the benefits of obtaining an FHA loan:
- Properties from 1 to 4 units. This also includes manufactured homes and condominiums.
- Many of the closing costs can be rolled into your FHA government home loans, meaning less out of pocket.
- Using gifts from parents, relatives or friends for your closing costs and down payment.
- Acquire a home in as few as two years after bankruptcy.
- Acquiring a home in as little as three years after a foreclosure.
- No prepayment penalty.
Our goal is to put a smile on your face. We believe that FHA Home Loans are the answer to making your dreams of homeownership come true.
CA FHA mortgages
Anybody can apply for CA FHA mortgages, but not everybody will qualify for an FHA loan. Income is not an issue; however, the borrowing limits in most areas of the country are smaller than that of conventional mortgages. In the case of a larger mortgage, an FHA loan may not fit your needs as well as a conventional mortgage loan. Check the FHA loan limits in your area. So now, if you are ready to apply for your FHA Home Loan, let's have a look at the qualification requirements.
- Stable employment of two years, if possible with the same employer
- The income for the last years should be consistent or backed by an increase.
- The mortgage payment assigned should be no more than 30 percent of your gross income.
