The Federal Housing Authority (FHA) insures loans against default, protecting both lenders and borrowers. It neither makes loans directly nor sets the interest rates on loans it insures. FHA insured loans can be used to buy new or refinance existing 1-4 family homes, condominiums, or mobile or manufactured homes on a permanent foundation.
Many brilliant reasons exist to select an FHA mortgage, particularly if you fit one of more of the following qualifications:
* you are a first-time homebuyer;
* you are unable to offer much of a down payment;
* you want to have the lowest possible monthly mortgage payments;
* you have concerns regarding monthly mortgage payments increasing at some point;
* you have concerns regarding the consequences of falling behind on your monthly mortgage payments;
* you have concerns about even being able to qualify for the loan in the first place;
* your credit is less-than-ideal;
If any of those factors apply to you, then an FHA mortgage might be just thing for you to apply for. This is because FHA mortgages are insured, offering several protections and benefits otherwise unavailable to you through most other loan packages.
The benefits of an FHA mortgage include the following:
* Lower Rates: Since it’s the Federal Government insuring FHA loans for the lenders, FHA mortgages typically offer interest rates considerably lower than the norm. For this reason alone, it is always worth comparing all other loans available at any given point in time against FHA-insured loans.
* Less of a Down Payment: FHA mortgages can be obtained with only 3% down and, unlike most other mortgages, permit the down payment come in the form of a gift from employers, family members, or charitable organizations.
* Simpler to Qualify: As FHA mortgages are insured, lenders are generally far more willing to offer loan terms and qualifications that are simpler to meet.
* Lower Credence Given to Credit: FHA loans are ideal for people with poor or less-than-perfect credit, as even people who’ve suffered credit and employment challenges (including bankruptcy) can still qualify for one.
* More Protection: The FHA was formed in 1934 to help people buy and keep their homes, and they’re not about to watch the homeowners they help then lose those homes to foreclosure. Rather, the FHA offers numerous options to FHA mortgagees in a bind, a boon most conventional loans don’t come close to.
Posts Tagged ‘interest rates’
Please help me decide between 2 mortgage loans.?
Saturday, February 20th, 2010Both Rates are locked and I need to choose for sure in a few days.
I can either get an FHA loan with at 5.5% interest with a 5.79% APR including insurance and only 10% down or a 5.5% interest loan at 5.6% APR with 20% down.
They are both 15 year mortgages. I am wondering if the FHA loan would be better even though the interest rate is higher since I could probably make an average of 8-10% on the stock market and if rates drop I can refinance and get a refund for the mortgage insurance.
The buy price is $400,000. I am 24 and have $250,000 to my name. The nature of my business is not very secure but I expect to make appx $200,000 per year for the next few years but it could potentially drop off.
My credit is meh which is why I am not getting a 30 year loan. I expect my credit to be well over 700 within 6-24 months. I am considering refinancing in 2 years but I don’t know how much of a gamble it is on interest rates.
Thanks,
Nick
Can an interest rate, once “locked in” be changed (lowered)?
Friday, February 19th, 2010We are in the first stages of getting an FHA mortgage and our broker with Prosperity Mortgage is saying that she can’t lower our rate to reflect todays lower interest rates because she had “locked in” the rates last week. Not sure if I trust her and have been told that they are like used car salesmen! I’m starting to believe it.
Tags: car salesmen, changed, FHA Mortgage, FHA Mortgage, Interest, interest rates, locked, lowered, once, prosperity mortgage, rateGrand Rapids area home sales climb in 2009, but average price still soft for year
Saturday, January 9th, 2010Grand Rapids area home sales climb in 2009, but average price still soft for year
Market shows signs of recovery thanks to incentives, interest rates, foreclosures.
Read more on The Grand Rapids Press
First Time Home Buyer Program, $8000 Tax Credit, Buy Foreclosures Cheap with FHA Mortgage
Friday, January 8th, 2010
Tax Credit for First Time Home Buyer and FHA Mortgage to Buy Bank Foreclosures at Discount Prices. Down Payment Help for Home Owners thru Federal Program. Go To RealEstateMarketingThisWeek.com Part 6 (Excerpt) Foreclosures may be the best buy option for first time home owners; Interest rates at all time lows In the last couple of months, 40% of all the total sales in Maricopa County were foreclosures. 40% of the total market was foreclosures and thats not including small …
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