Are you considering the purchase of a home? Are you struggling under the threat of losing your home? If so, consider how FHA can help. FHA loans are government-backed loans that often have a much lower interest rate than a conventional (traditional) loan. Before you right off these loans as impossible options, keep in mind that millions of people are benefiting from theme right now.

Here are five ways that FHA loans can help you to obtain the home you are looking for, or help you in other ways.

#1: Lower Interest Rates: The main benefit of FHA loans is to provide individuals with a lower interest rate. If the FHA is backing your loan, you are less of a risk to the lender. Therefore, they agree to offer you a slightly lower interest rate. This translates into an interest rate that could save you thousands of dollars over the lifetime of that loan. That is money in your pocket.

#2: Better Qualifications: Many lenders have increased their standards in lending money. If you do not have a credit score over 700, then our best bet to getting a low interest rate home loan is with the FHA loans. You do not have to have as much down to qualify for these loans either.

#3: Help Getting Out Of A High Interest Loan: Perhaps you have a high interest rate loan. You are paying much more than the current four to six percent loans that are available. FHA loans can help you to get a low rate even on refinances. Definitely, worth looking forward to since it will drastically cut the amount it costs to buy your home.

#4: You Need Help: There are a number of programs available through the FHA to help you to get out of a troublesome home loan. You can stop foreclosures and often stop your overall risk of losing your home by taking advantage of these programs. If you need this help, contact an FHA loan specialist today.

#5: You Are A First Time Home Buyer: For those who have yet to buy a home and are worried about doing so, FHA loans can help. These loans are highly affordable and they are ideal for the first time homebuyer unsure of what to do next.

FHA loans can help millions of people to get into the homes they want and need, or to protect them from losing their investment. Contact a professional today to learn if you qualify.

Foreclosure numbers are staggering and they are likely to continue until some type of aid is available to the average homeowner who is losing their job, unable to make payments or just made a poor financial decision. The FHA and HUD actually provide some help to individuals who are facing foreclosure or who wish to avoid it.

What To Do Now

If you are at risk of foreclosure, you need to do something now. Do not wait as this is a sign of your willingness to go through with the foreclosure. Instead, invest the time in getting help.

#1: Talk to an FHA housing counselor about your situation. They may be able to point you in the right direction in terms of stopping the foreclosure process. There IS help available for many people.

#2: Talk to your lender. Today’s lenders are more willing than ever to keep you in your home by finding a solution to foreclosure. When they call, tell them what is happening and what type of help they can offer. They may allow you to skip a payment or help you to refinance the loan into a lower rate.

#3: Find out if you qualify for HOPE for Homeowners, a program designed to provide resources to individuals who wish to remain in their homes but who are having trouble refinancing or getting into a more affordable loan.

Should You Keep Your Home?

Those without income may be unable to remain in their home since no amount of mortgage can be paid. If you do have a job and you do wish to stay in your home, find out if there are any options to help you to do so. If you lose your home to foreclosure, lenders will not lend to you for years to come. With the credit market being so tight, even with good credit, you will struggle to find a lender to buy another loan, or even a rental agent who will rent to you. In other words, if you can stay in your home, do so.

Those who may be having trouble with lenders or those who are unable to find the help they need otherwise, may wish to look for help directly from FHA loan specialists. The goal you have is to get help now. Do not wait since it only takes a few months before you are too far into the foreclosure process to stop it.

As the Congress and President work to find a solution to the ever-growing problems of the average American citizen, one thing is certain. Foreclosures need to stop or find help. Even with FHA loans available, so many homes foreclosed on each month. The good news is that lenders are listening. Several lenders have agreed to moratoriums on foreclosures. If you own a home and feel threatened by foreclosure, by one of these lenders, you may have some breathing room:

*JPMorgan Chase & Co
*Citigroup Inc
*Bank of America Corp
*Wells Fargo & Co

Each of these lenders have agreed to temporarily stop foreclosures in the hopes that the government has help on the way for them and those homeowners who are struggling to stay in their homes. The stimulus programs being put into place have billions of dollars in them to help Americans to stay in their homes. This applies to ne foreclosure actions.

It’s Not Too Long

Keep in mind that this freeze is not a long-term process. Rather, according to Jamie Dimon who is JPMorgan Chase’s chief executive, as reported by Cnn.com there is limited time. He said, “We believe three weeks is adequate time for the Treasury to announce- and for use to implement- a new plan.” Bank of America’s freeze will last through March 6th. Citigroup has promised to hold off on foreclosures through March 12th. Wells Fargo has not set a specific date, but says that they will halt foreclosures until the government’s plan is announced.

What To Do

Are you likely to be affected by a foreclosure in the coming weeks? If so, you may want to use this time to secure different financing options. There is no immediate information available in terms of what President Obama will be outlining in his plan to stop foreclosures. Therefore, if you are at risk of losing your home, do not waste this time. Call a professional FHA loan specialist to aid you in determining what options you have.

Keep in mind that there are already several types of programs in place to aid individuals in refinancing their current home loans to get into new ones to avoid foreclosure. FHA lenders can help you to determine if you qualify for this type of loan. While President Obama’s plan is on schedule for review in the coming weeks, do not wait that long to find out if you qualify.

If the bill Rep. Al Green proposed passes into law, borrowers looking to get an FHA mortgage may once again receive down payment assistance.

The bill, HR 600 — the FHA Seller-Financed Down Payment Reform Act of 2009 — would help borrowers who don’t have the money for a down payment become homeowners. Down payment assistance was outlawed last October, but Green’s proposed HR 600 would revise the requirements for the program. By creating this type of opportunity, the number of potential foreclosures would decrease and the failing housing market would be on the rise to recovery.

“Seller down payment assistance has helped more than one million Americans who are able to afford a monthly payment but do not have the down payment needed to become homeowners,” Green said in a Central Valley Business Times article. Down payment assistance would cost the federal government nothing over the next five years and actually save taxpayers money.

Nehemiah Corp of America, who pioneered the program, said that by reinstating down payment assistance, about 600,000 working-class people would receive aid for their home purchase next year alone, which would create $150 billion in home sales.

HR 600 has been referred to the House Committee on Financial Services, of which Green is a member, and is awaiting consideration. If committee members report the bill favorably, it will then move to be voted on by the House as a whole.

There is no doubt that the foreclosure numbers for the year of 2008 are staggering. According to RealtyTrac.com, a leading industry monitoring website, some 860,000 properties were foreclosed on in 2008. That number is shocking, but what is even worse to consider is what the future holds. Many of you may be included in the next few month’s foreclosure numbers, unless you take the time now to talk to an FHA loan specialist who may be able to get you out of the loan or help you to have it modified.

What’s Next?

Consider this next year. The numbers for 2008 are from throughout the year. The problem is, many of the harshest layoffs and the largest job loss did not happen until the end of the year. They are still happening in January of 2009. That means that many of these individuals, who have lost their jobs or otherwise lost income are just now getting behind on their mortgages. The foreclosure process can take six months to go through. This translates into staggering numbers for the 2009 year. These foreclosures are not likely to hit the books for another four to six months. And, with thousands of people out of work, they will be incredibly deep and painful.

There is little that can be done about a home that is deep into the foreclosure process. Yet, for most individuals the process can be stopped long before it gets to that point.

Checklist of What to Do Now

If you are facing the fact of being unable to make payments on your mortgage, here are some things to do, now.

#1: Talk to your lender to find out if they can help with loan modification. They may be able to help you to get caught up. This is especially important if you wish to keep the home and have the income to make payments.

#2: Talk to an FHA loan specialist, or someone who can help you to qualify for an FHA loan. The FHA has put together special packages and outlines specific options for those who are suffering and are behind on their mortgages.

#3: Don’t wait. The longer you wait to get help for your mortgage loan, the more difficult it will be to get caught back up.

Foreclosure is not a process you can’t stop. You can, and with some help, you may save money in the process.

A Closer Look at the Numbers

What is happening around you? Take a look at a few more numbers as they came out just a few days ago.

•    In 2008, 1.1 million people received foreclosure notices in the combined states of Nevada, California, Florida and Arizona.

•    20 percent of the 1.1 million homes that entered the foreclosure process were located in California.

What is happening where you are? If you aren’t sure, you can use RealtyTrac.com to get a better idea.

Most individuals in foreclosure today are not in foreclosure because they are irresponsible or took on bad loans intentionally. They simply are struggling, which is why so many of them are just looking for help.

Is this you? To find out if you qualify for any type of loan modification or to freeze your foreclosure, contact one of the FHA loan specialists. There is no guarantee that every homeowner can remain in their homes, but many individuals can. The opportunities available through FHA are helping thousands of people each month to stay in their homes and to avoid foreclosure. They may be able to provide you with the help you need, too.

Are you a homeowner in the United States looking for the American Dream? If so, you may be in trouble if you still have an ARM, or Adjustable Rate Mortgage. As you likely know, the last year or two has been very bad for the housing market and ARM rates are one area in which the problem got worse. Yet, many of those who did pick up a loan since 2002 have had that loan adjust already. This is the shock that has hit the housing market. There may be more shock coming.

What’s A Mortgage Reset?

Mortgage resets adjust the interest rate on the home loan a person with this type of loan has.  For example, let’s say that you have a home loan with an interest rate of 6 percent for the first three years.  You picked up that loan in 2006 and have since had no problems paying your mortgage loan. Now, the reset period is coming to an end and you are worried. When your loan resets, what is the likelihood that the loan will be too expensive for you?

There is a new wave of mortgage resets set to hit the country in the next months, and will likely continue through 2010 as a number of “option ARM’s” were put in place. These are subprime loans and some are not.  The point is, they are adjusting in the coming months which will cause a new wave of homeowners unable to pay their payments.

Do Something Now

If you are a homeowner with an option ARM or any other adjustable rate loan, now is the best time for you to make a change. What you will need to do is get that loan refinanced as soon as possible, before the loan is in fact adjusted.

FHA can help you to get into a more affordable loan if your loan has recent or will do so prior to the end of 2010.  This will be an outstanding opportunity for you to get a lower interest rate, fixed loan that likely could save you a substantial amount of money.

The worst thing you can do is wait it out. Right now, interest rates are very low. Even those with credit scores that are low may qualify (currently the FHA will accept credit scores at 580 or above.) You have the opportunity to save substantially.

Estimates are that some $500 billion worth of mortgages will be affected in the next four years by these adjustable rates. The FHA can help many to get out of this problem.

FHA Secure is an FHA program that you should know about. It was specifically designed to tackle some of the largest problems in the housing industry today and it has done well at accomplishing this, thus far. While I believe there is much more work to do, FHA Secure is a strong program designed to provide people with assistance.

Let’s look at some numbers.

The FHA Secure program is now a year old. During the last year, this program has helped refinance the mortgages of more than 325,000 Americans. That is a considerable number.  The goal of the program is to help at least 500,000 people y the end of 2008 and it appears to be on track to accomplish that.

FHA Secure can help you, too.  This is not a new loan and it is not something that is a free ride. Rather, it gives help to those who need to get into new loans the opportunity to do so. Many homeowners have the ability to pay on their mortgages but may have fallen behind and cannot get caught up. Others have had adjusted rates on their ARM loans which has caused them to fall behind or struggle. These people can pay for their loans with help getting into a better loan. FHA Secure seems to be just what is necessary to accomplish this.

FHA Secure lends help to those needing to refinance their home loans but have fallen behind on their mortgage payments.  Prior to the start of the program in August of 2007, many people were losing their homes after just missing a few payments or being late, after their rates had adjusted and they suffered from an initial shock of that adjustment.

In July of this year, FHA Secure also helped many people that were already at the default stage of the foreclosure of their homes. By expanding who they could help, the program expanded the opportunities for good Americans to remain in their homes.

The program is a good one and will continue to provide this type of help for the months ahead. If you find yourself in this type of situation, contact an FHA loan specialist to get help. They will work with you to determine if your loan situation helps you to qualify for this readjustment. Many American homeowners are able to find help here and can stay in their homes as a result.

Homeowners who are struggling to make payments in New Jersey may have an opportunity to get out of their bad mortgages easier than they think. As a proponent for helping those who are struggling with home loans, I must first say that if you are on the brink, contact an FHA loan adviser to find out what your options are. If you are in New Jersey, consider this opportunity.

The Federal Home Loan Bank of New York is a large bank providing funds to many of the 200 local banks in the region, including those in New Jersey. The bank has recently announced an initiative to offer some help to those who are struggling with their current mortgages.

The initiative is called HARP, or Housing Assistance and Recovery Program. The Federal Home Loan Bank is providing some $6 millions to Magyar Bank, which is based in New Brunswick. There, the First Baptist Church of Lincoln Gardens will provide counseling to those homeowners it has identified as being in danger of foreclosure. Once these people have been identified, the company (working under The First Baptist Community Development Corporation) negotiates on the homeowner’s behalf with their lender.

They use the proceeds from the $6 million loan to offer up to 70 percent of the loan’s value to the lender. Most lenders are happily taking 70 percent knowing that these individuals are on the verge of foreclosing. The lender will simply write off the remaining 30 percent as a loss and turn the loan over as a paid in full loan (which Magyar Bank will now hold as mortgage holder.)

Sound confusing? It is, but there is more. Magyar Bank holds the loan, but the homeowners are now actually renters in the home, and will make payments to First Baptist. The rent amount is based on what the homeowner can afford to pay. First Baptists works closely with these now tenants so they can improve their credit scores and their financial outlook. Then, once the tenants are ready, they will hopefully be able to refinance the loan into a new one with better terms.

The organization is working with other organizations in the New York area, as well as other areas of New Jersey to offer similar opportunities. There are several families making the transition into new mortgages currently.

Is this the right option for you? If a program like this is offered, and you have exhausted all possibilities with other loans, including FHA loans, then consider it. Work hard to get back ownership of your home though!