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FHA Mortgage  

One of the biggest staples when it comes to mortgage products out there is that of the FHA mortgage.  FHA mortgages have been a great help for those looking for a bad credit mortgage in order to get them into a home.  While FHA has helped out many with bad credit, it has also been used a prime product for borrowers with excellent credit ratings and assets.  So what makes the FHA loan so desirable?  Let's go over a few key components to an FHA loan that makes them so widely popular. 

 

The first thing that makes FHA so desirable for many borrowers is the fact that it is regulated and insured by the Federal Housing Administration.   Because it is backed by this entity, the mortgage insurance is much less as the lender takes on less risk by offering this type of mortgage.  FHA mortgages are available in different repayment terms such as 15, 20 and 30 years repayment periods.  Because FHA mortgages are heavily insured, they only require a 3.5% down payment.  This alone is the biggest factor that makes them so appealing to customers looking to get a mortgage loan.  Most conventional loan products require a down payment of up to 10-20%.  Only having to pay 3.5% is a huge decrease compared with other loan programs, which means that people will have to put much less down in order to buy.  With the economy as sluggish as it is, many people don't have the savings that they used to.  Getting an FHA loan can make it much easier for the common family to get into a home and get out of the bonds of renting. 

 

FHA loans are regulated and have specific guidelines.  When getting mortgage refinancing, they offer a mortgage refinance streamline process. This process requires less documentation and basically just refinances your existing FHA mortgage with a new rate.   FHA mortgages are also much less strict when it comes to credit score.  Because of this, this type of mortgage has often been called a bad credit mortgage as people with less than perfect credit often will try to get this type of mortgage as it is more lenient.   

 

As you can see, whether you need a bad credit mortgage, or mortgage refinancing, you can get the mortgage that you have always wanted by getting an FHA mortgage. Interest rates have been historically low for this mortgage type, so now has never been a better time to get on board and qualify for an FHA mortgage.  

 

  10 Steps to Home Ownership:

Step 1: Are You Ready?

Step 2: Hire a Realtor

Step 3: Get Loan Pre-approval

Step 4: Search for Homes

Step 5: Choose a Home

Step 6: Obtain a mortgage

Step 7: Make an Offer

Step 8: Insure Your Home

Step 9: Close the Deal

Step 10: Avoid Foreclosure

 

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