Most borrowers have heard of FHA home loans. They are very common. You hear about them mostly as loans for first time borrowers, which is common. However, most people don't realize that FHA loans can also be does for refinancing. They are not only for purchasing a house.
HUD owns and operates FHA, which is a program designed to help borrowers who might have difficulty buying a house. If the borrower falls within FHA's requirements FHA insures the loan for the lender, which makes the loan very low risk for the lender, which is very good for the borrower. It could mean a lower interest rate, better terms and just an overall better loan.
FHA's requirements are; a down payment of 3-5%, the home must be under the FHA's set loan limit for the county that the borrower lives in and a few other small requirements.
The main advantage to an FHA loan, is if you can fall within their requirements, your credit history or income level, will not hold you back from getting a home loan. If you are getting turned down from other lenders because of a high debt to income ratio or because your credit is bad. You may want to consider applying for an FHA loan, where those requirements are either non-existant or much more flexible.
If the idea of down payment is holding you back, consider also, that FHA loans allow the use of a non-profit organization as a source for the down payment, which opens up the option of using down payment assistance programs like Neighborhood Gold.
To view our list of recommended mortgage lenders online, who offer FHA programs, visit this page: Recommended Lenders for FHA Loans Online.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Everybody wants to own a house because it is something... Read More
Are you looking for the best buy to let mortgages... Read More
It can happen to anyone, the roof is leaking, the... Read More
To make needed repairs to your home without the advantage... Read More
Have you heard about or been interested in finding out... Read More
Buying a home is usually the largest purchase any of... Read More
Mortgage rates typically are based off the current rates of... Read More
Taking the step for prospective home buyers.into home ownership is... Read More
Property website Rightmove has released its latest house price index... Read More
Mortgage underwriters can be a suspicious bunch. If you have... Read More
In previous decades, when a borrower missed a payment on... Read More
Real estate prices have been increasing steadily over the last... Read More
Finding home loans can be a daunting task, whether you're... Read More
When trying to obtain the best mortgage rate compare offers... Read More
My visit to the lender was interrupted with my wife... Read More
A quickly growing trend in lending is the online homeowner... Read More
There are two broad types of home equity loans:Term loans:... Read More
As common as mortgages are, there are a surprisingly large... Read More
Having a pre-approved mortgage will give you the confidence of... Read More
If you happen to be shopping around for a mortgage,... Read More
The most basic distinction between types of mortgages that are... Read More
Getting the cheapest home improvement loans isn't always easy. It... Read More
Finding the right buy to let mortgage is crucial to... Read More
You can buy a home with a bad credit record;... Read More
Buying a home vs. renting is a big decision that... Read More
Private mortgage insurance is an excellent method for homebuyers who... Read More
At some point as you're writing out your rent check,... Read More
Using a home equity loan to get out of debt... Read More
Interest-only loans are quickly becoming a mainstream loan product. Borrowers... Read More
You've finally found that dream home that you have always... Read More
Sub prime lenders come in two groups: reasonable and unreasonable.... Read More
What happened to the days of a 15 or 30... Read More
I don't know what the mortgage situation is around the... Read More
Refinancing after a bankruptcy can seem like an especially difficult... Read More
Here are our Top 10 most important things to consider... Read More
I decided to write this article today after closing a... Read More
Raising capital is integral for growth and expansion of an... Read More
With so much lender advertising focusing just on rates, you... Read More
Commercial mortgages are similar to residential mortgages. Usually taken by... Read More
Purchasing a home involves certain important, even essential, steps that... Read More
Owing to the popularity of home equity loans, there are... Read More
If you are currently looking for a new home, chances... Read More
According to the Council of Mortgage Lenders, first-time buyers are... Read More
Home equity is your own personal money machine. If you... Read More
Money is like music, if managed well, produces a good... Read More
So, you have made the decision that you would like... Read More
To find the cheapest home improvement loan that you can,... Read More
When buying a home, you need to take a home... Read More
There's more Regulation Z compliance on the way, courtesy of... Read More
A few notes of importance: This only applies to... Read More
The average home in the United States has a value... Read More
Just because you have negative items on your credit report... Read More
When you refinance your home mortgage, lenders often tempt you... Read More
By refinancing your property online you can take advantage of... Read More
Refinancing can be a very simple process. You fill out... Read More
If you think you have good credit, think again. Chances... Read More
You've undoubtedly heard or seen ads for mortgages with very... Read More
There are currently more than 50 million home mortgages in... Read More
Interest - is an amount you pay for the use... Read More
A Home equity line of credit is a loan which... Read More
Many homeowners want to know if it worth taking a... Read More
One of the most important steps in the home buying... Read More
In today's world, a borrower should not be paying mortgage... Read More
Financing and buying a home can help improve your financial... Read More
Before you go looking at houses, you'll need to find... Read More
It takes a mighty big effort to secure a home... Read More
Mortgage Refinance |