blogFHA LoanHow to Apply for an FHA Home Loan

September 2, 2014by Darryl Bledsoe

FHA Home LoansFHA home loans are not complicated to apply at all since FHA loan is a loan that is backed by the government against lender loss. The FHA is the Federal Housing Administration and although there are many facets to the group and many tasks that they complete, only one is important right now.

The FHA picked and continues to pick a number of lenders to be part of FHA loans. For someone that is trying to get a mortgage, this is important. It means that within that lender group, it can be much easier to get a mortgage and the terms may be much easier to manipulate.

What Is a FHA Loan

If you want to know what is a FHA loan you need to know how the bank looks at a loan. For a mortgage, there are two main parties, the lender and the borrower. You, the borrower will have a lot of information to deal with during the mortgage process. The FHA down payment, the FHA loan itself and even the ability to procure an FHA loan or mortgage can all vary depending on lender and yourself.

Let look at the lender first to set the stage. From a lenders point of view, if they loan you money to buy a home, they want to be able to make that money back. The FHA insures them to protect them against a borrower defaulting. That means that if you get a mortgage through an FHA loan and stop making payments, the borrower does not take a loss. There are many rules and factors that can change that, but that is the simple version.

You, the Borrower

An FHA loan is not just for borrower with less than perfect credit score. Many people can get a standard mortgage, but choose to go through an FHA loan because the terms are better. There may be a smaller FHA loan down payment or their FHA loan rates may be lower. The bank makes their money off the interest and if they see any risk in the loan, they may set a higher interest rate in a standard mortgage. However, if the FHA is backing the bank up, then they have less to worry about in the case of default.

Apply for a FHA Loan

If you are in the market to buy a house, you have to look at an FHA approved loan. Even if a bank has turned you down or even if your credit is not perfect, there may be more than one choice when it comes to getting that home loan. You would never walk into one store and immediately grab a high ticket item without looking at the prices elsewhere first. Do not gamble with your mortgage terms or think that there is no way for you to get into a home, check out the FHA loans first and then decide. is here to assist you to get you the home loan that is best match for your situation. Call us now to start your home loan application.

How to Apply for an FHA Home Loan
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