Why FHA?
If you have been qualified at a higher rate than you expected or denied because of your credit a FHA (Federal Housing Administration) mortgage may be your little known savior. FHA loans are guaranteed mortgage loans that are backed by the government. Since the U.S. government guarantees these loans the mortgage rates are (many times) better than if you took out a conventional loan.
Here is a checklist you can use to see if FHA is an option suitable for you. If any of the following statements about you are true a FHA loan may work for you.
- I have a high Loan to Value (loan amount divided by the value of the home exceeds 70%)
- I own a Multi-Family home
- I want to take Cash-out
- I have less than perfect credit
- I had a recent Bankruptcy
- I want to add a friend or family member to the mortgage who does not live with me to help me qualify for the loan
- My current rate has adjusted and I can not handle the new mortgage payments
- I am a First Time Homebuyer
- I don’t have a lot of money to put down on a purchase
(FHA was originally created in 1934 to help the housing industry recover from The Great Depression. Today FHA programs are being used to help the housing industry out of the credit crisis.)

Wed, Oct 8, 2008
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