Owning a home is a goal that anyone should strive to achieve. In recent years, homeowner’s across the country have taken advantage of low prices and great interest rates. However, owning a home is not as easy as it may seem. Lenders make it difficult for the everyday worker to get approved for a home loan. Large down payment requirements and a crystal clear credit history are just some of the roadblocks to deal with. So what are you to do? Will you rent forever?
FHA has been helping working Americans own their own home for several decades. Their low interest rates and flexible down payment requirements mean that now can be the right time for you to stop renting and finally own a house. The Federal Housing Agency is insuring housing loans made through FHA accredited lenders to help protect lenders from possible defaults in mortgage payments. With FHA insuring the housing loans lenders are able to fund loans that normally would be declined. Applying for a housing loan is easy and thanks to FHA you may be surprised to discover you fit most of the requirements for FHA loan programs and their benefits.
Compared to most conventional lenders, it is much easier to get approved for a home loan through FHA. The minimum credit score for FHA loan approval is a 580 FICO rating. Those extremely low credit score requirements make it possible for a borrower who may have had past credit issues still obtain approval at interest rates usually reserved for borrowers with much higher scores.
FHA backed loans offer more flexible housing loan options for their borrowers. Homeowners can chose between both variable and fixed loan terms. In recent years many “Refinance FHA loan“ marketing initiatives by mortgage brokers have brought to light programs such as the FHA streamline refinance which can help homeowners lower the interest rate on their current FHA loan. The FHA max loan amount depends on the location and value of the property and in some areas down payment assistance may be available.
If you need further help in processing your FHA home loan or just want to know how you can get approved for a loan. Please contact our friendly staff and we will gladly answer any questions you may have.