FHA Government Home Loans

FHA Government Home Loans are government funded Real Estate mortgage loan programs aimed at enabling first time homebuyers and low to middle income borrowers to buy houses of their own.

The US government’s Federal Housing Administration (FHA) program backs the mortgage and in case of default on the part of the borrower, the government guarantees to repay the bank. This gives banks a sense of security in a tight credit market so that they feel comfortable lending to less established borrowers.

FHA Government Home Loans are of great help for people in all walks of life… Native American Indians, community workers like teachers and police officers, and residents of low-income housing projects. These loans are not just for low income borrowers, they are designed to help average, every day Americans just like you and me.

Before providing FHA home loans, the government agency ensures that the borrower has a solid credit history of at least 12 months, where he has made all the payments on time. Apart from the credit score, the FHA may also take phone bills, utilities, rent history and other bills into consideration. The agency also gives the opportunity to demonstrate why you may have a bad credit score. You won’t find any conventional mortgage loans with that kind of flexibility in today’s tight credit environment.

Since a US government agency provides reverse mortgage lenders and other mortgage companies with protection against losses, even borrowers with poor credit can get approval.

Most of the borrowers who fail to qualify for a conventional loan, seek government loans and FHA Government Home Loans provide the best answers to their housing needs. Government loans are provided by the following three federal agencies.

  • US Department of Veterans Affairs (VA) Loans, which are provided to military veterans without any down payment.
  • Rural Housing Services (RHS) Loans
  • Federal Housing Administration (FHA) Loans

The FHA does not provide loans to the borrowers but insures the mortgage lender against any possible loss. The maximum loans limit of FHA Government Home Loans depends on the average cost of living in the particular area. In case of FHA loans household income to payment ratios are also easy and flexible to calculate.

Benefits of FHA Government Home Loans

Here are just a few of the benefits of obtaining FHA Government Home loans:

  • 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.

FHA home loans are renowned for having a soft spot for people with recent credit troubles. FHA Government Home Loans do have exceptions and your lender will know about limitations for your area.

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.

What are you waiting for? Get started with your FHA Government Home Loans today.

Purchase, Refinance or Home Equity,
Great Rates in Just 3 Easy Steps!

  • 1Fill out our form
  • 2Get matched with up to 4 lenders
  • 3You choose the right offer
I agree to this site's privacy policy and terms & conditions
  • 100% Free - No Obligation
  • Confidential and Secure Service
© 2008 Mortgage-Loan-Center.com