An FHA loan is a US Federal Housing Administration approved mortgage insurance loan that is offered by an FHA-insured lender. FHA loans are a form of financial assistance to individuals or families who need assistance with their purchase of a new home. The amount of the loan, along with the repayment options and terms is determined by the property the borrower wants to purchase and the amount of money they have available for this purpose. If you are a first time home buyer, you may be able to qualify for an FHA loan. However, even if you are an experienced home buyer you can still get an FHA loan.
There are several different types of FHA loans. The two most common types are the 100% mortgage-insuredinsured loan and the conventional loans. FHA loans can be obtained from one of three places. These places are banks, credit unions, or mortgage companies. Banks will typically not approve loans but do consider willing to negotiate with you to lower your interest rate.
The other option available to you is from mortgage lenders. You can go directly to some mortgage lenders to inquire about getting an FHA loan. Most lenders are willing to discuss FHA loans with you. In addition to being willing to discuss FHA loans, many of these lenders also have special programs for senior citizens, low-income families, and people with bad credit scores.
The third place you can go to look for FHA loans is from credit unions. As mentioned above, many mortgage lenders do not offer FHA loans, so you may have to look to credit unions for this type of loan. Credit unions tend to have a strong lending history and they do not have as many limitations on the loans that they offer as do mortgage lenders. Additionally, many credit unions have lower closing costs than do mortgage lenders.
Another place that you may find FHA loans is at the local sheriff’s department. Many rural counties will contract with FHA brokers to help find buyers and sellers of FHA loans. Some of these brokers will even take the place of the county sheriff when it comes to appraisals and licensing requirements. If the borrower is at least 18 years old, a person who owns a home can apply for an FHA loan without being in foreclosure or having a court order approved by a judge.
If neither of these options is suitable, you may be able to find a buyer or seller using private lending. Private lenders will often work with people who have less than perfect credit scores. In general, private lenders will require borrowers to own a home, although they will have fewer restrictions on the loans than conventional loans. If you are willing to obtain a private loan, you should prepare a financial statement that will include your debt, income, monthly expenses, other assets, and any current debts. A representative from a private lender will visit your home and evaluate your finances. He will ask for all of your credit cards and will try to contact your employer to obtain payment information.
You will need to provide all of this information to him within about two weeks for pre-approval and approval on either a conventional mortgage or an FHA loan. If you are applying for a conventional mortgage, your credit score will determine whether or not you are given an FHA loan. This score is also used to establish your eligibility for the various programs the agency offers, such as low income, no documentation, or military.
FHA loans have helped millions of Americans get the house of their dreams, saving them thousands of dollars over the life of the loan. By refinancing an FHA loan, borrowers can pay down their debt and save money on their monthly mortgage payments. In addition, by putting up collateral, many people are able to get much better mortgage terms. No matter which type of FHA loans are right for you, these loans offer peace of mind and security in today’s shaky housing market.