For those who are looking for an FHA loan, you may be happy to learn that the FHA still has some great loan opportunities available for those who qualify for them. The Federal Housing Authority, or FHA is still offering home loans requiring just 3.5 percent down. This is good news to anyone that is struggling to find a loan available to them do to the numerous issues with the credit crunch.

In the traditional, conventional loan market, there is no doubt you will have a difficult time finding a home loan that does not require a larger down payment to be made. Some lenders are now insisting on down payments at 20 percent of the home’s value. Those who cannot afford this may not have an option outside of the FHA loans available.

The FHA does still have loan opportunities available, including loan programs offering 3.5 percent down. A low down payment is the critical aspect for many potential home buyers. Having 20 percent or more to put down on a house is a great way to get a low rate and it enables lenders to look at you more favorably.  After all, after you have invested that much into the home, you are unlikely to just walk away from it. Since lenders are trying desperately to protect themselves from further foreclosures and subprime loans, they are simply sticking with what they know: those who invest in a larger down payment are less likely to walk away from their homes.

Are They Safe?

One of the biggest concerns people have today when it comes to FHA loans is security. Rightly so, people want to ensure that the home loans are going to be safe to have. When you work with an FHA loan specialist, you can ensure this is the case. Most lenders accepting these loans are well qualified to do so. Even if they do fold, you are highly unlikely to lose your loan or any of your financing. Still, you can speak to the specialists to learn more about this.

How To Get An FHA Loan

Since FHA loans do allow for the much lower down payment, many people are using them as the means to get the home they want. You will need to work with an FHA loan specialist to enable you to find out if you qualify for this type of loan insurance. You can get prequalified to purchase a home within a few minutes, too. Unlike a few years ago, standards have tightened, though.

•    You will need that 3.5% down payment or more
•    You will need to have no more than 31% of your gross income going towards paying your mortgage
•    You will need to have good credit. Those with serious delinquencies on their records may not receive approval.

If your credit score is lower than 500, though, you may need to pay a larger down payment, up to 10 percent. Moreover, as with all FHA loans, you will need to pay mortgage insurance during the first years of your loan.

You can find out if an FHA loan is right for you by contacting any of the FHA specialists available. They will ask you a few questions and get information about your credit score for you. Generally, the process takes only a few minutes to work through. You can get a quote for an FHA loan, too, so you can see if this is an option for you.

If you have 3.5 percent to put down and meet the other qualifications of FHA loans, now is one of the best times to get investing.

Today, the stock market fell, again. How in the world will people make money if they keep losing it? The fact is, the financial markets are horrible and they are shaking even the most seasoned professional investors. So, as an individual with money, where should you put it?

One option you do have is to put the money towards a home investment. Buying real estate now just makes sense. In some areas of the country, the value of real estate has fallen 10 percent, 25 percent or as much as 50 percent. The good news is that the homes are still as highly valued (outside of the financial sense.) Buying a home now can help you safely invest your money. Consider the following.

Let’s say that in your area you invest in a home selling at $200,000. You secure a home loan at 6% through the FHA with a fixed interest rate. You put down $6000, which is the minimum 3% investment the FHA requires as a down payment.  You have a $1200 mortgage payment.

Over the next few years, the home continues to rise in value, as many real estate investors believe that this is the bottom and that housing values will continue to rise. So, in 5 years, at just a 3% gain in value per year, you could have a home valued at nearly $220,000. This would be a low gain, but a safe one.

As you can see, socking your money away into a home loan could make you a sizable profit over the long term. But, even as the market stays well priced, your money is safe. It is not going anywhere. Even if property values fall, you will still be making money in the long term. There is no telling what the future of the stock market is today, but there is only so much real estate available.  It is one of the safest loans.

Do You Qualify?

To get into a safe loan, do consider FHA loans. These loans are the most well priced homes you will find in the coming months. They offer a low down payment. They also provide you with a low interest rate that is fixed for the life of your loan. Those with credit scores that may be slightly low may still qualify for these loans. There are just so many options available.

It is your money and no one wants to lose their money. When you invest in real estate, you do not put your money on the line with investors who may or may not be too scared to allow the stock market to grow. Rather, you have a security at a very low rate. That home you bought for $200,000 was valued at $250,000 or even higher just a year and a half back. As the housing market picks up, it could be back at that level in just a few short months.  For most, this is an option for you.