FHA Loans - An Introduction to our FHA Blog
The Federal Housing Administration has been helping people become homeowners since the 1930s.
The FHA fell out of favor over the past two decades as loose loan providers offered prospective homebuyers of all stripes financing without proof of income or financing restrictions. Now, the housing market and the country’s economic market as a whole are suffering the consequences of widespread failure and foreclosure stemming from the subprime market.
As such, more and more first time homebyers and current homeowners looking to refinance are turning to government-backed programs such as the FHA. With legislation pending in Congress and the announcement of FHASecure earlier this year, FHA home financing is returning to the consciousness of the American housing industry.
Rightly, the agency insures FHA loans, making sure that if you cannot pay the loan and wind up defaulting, the lender is covered financially. That way, knowing they’ve got some protection, lenders can feel free to offer customers better loan terms and conditions.
The FHA helps people who might not otherwise quality for a mortgage loan find equal footing. These loans come with little to no start-up costs and often feature great rates. People with so-so credit, bankruptcy problems and other income issues may be surprised at their ability to qualify for an FHA loan.
You can also use an FHA loan to make repairs on that fixer-upper you’ve had an eye on. With a FHA loan, home buyers can simply factor in the cost of the renovations and repairs into the overall loan.
Please be sure to return to our blog for updates and explanations of the program. We hope to build a popular resource for interested consumers that they can rely on for honest, up-to-date education about home financing.
