In a recent story reported by the Tri City Herald out of Washington, FHA loans are set to move forward at a much faster rate. In their report issued on June 25th, there is evidence that the number of home buyers looking for secure loans through FHA is increasing. This is the same sentiment happening in many cities around the country.

Lenders offering conventional loans are making it more difficult every day for the first time home buyer to get into a home. Those without high credit scores or a significant down payment are finding it difficult, if not impossible to get into the American Dream scenario of homeownership. This has crippled many opportunities for potential home buyers across the country. If you cannot prove yourself through a first time home loan, how will you ever get into a home at all?

FHA has the goal of helping those without significant histories of credit worthiness. They provide insurance to help mortgage lenders accept the less than ideal credit score or the low down payment. First time home buyers are turning in record number to the FHA loans because they are the only opportunities available to them.

Yet, is using an FHA loan a bad thing? Even those who would otherwise be able to get into a conventional loan should be thinking about the benefits of FHA. This includes a lower interest rate, more security, lower down payments as well as the simple fact that lenders are willing to loan with FHA insurance backing the loan.

In the report issued by the Tri City Herald, it shows this through the numbers. From October of 2007 through May of 2008, some 722 FHA backed loans were put in place. That is more than a twelve month space from October of 2006 through September of 2007 (that time period say just 683 loans in a significantly longer period of time.)

The same scenario is playing out in many areas of the country. The fact is, first time home buyers often need this type of loan to get started on the home ownership path. Yet, many other home buyers that would qualify for conventional loans are still seeking out FHA loans because there is less risk and worry.

Are you ready to move forward with a home purchase? If so, find out if you qualify for FHA loans. It could mean the difference between getting into a home or not, but more than likely it means more security.

This entry was posted on Thursday, July 31st, 2008 at 12:19 pm and is filed under FHA Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.