The housing market is struggling nationwide. That does not mean that your local market is struggling, though. Nearly all neighborhoods in the country have seen some fall in value. Yet, this does not mean that the horrors that are happening in some areas of California and Nevada are playing out in your back yard. Your area may actually have some strengths in it right now. Many markets are stable and many others are on the rise.

Before you right off the current condition to be too risky to invest in a home loan, find out what is happening in your local area. There are a variety of online appraisal websites that can give you a free estimate (which is not always 100 percent accurate, but close) to help you to see what is actually happening in your market. It may be that your area has just what you need: well-priced homes and affordable mortgage prices.

Contrary to what many people believe, there are still mortgage loans available to those who are qualified to get them. Does this mean you have to have a credit score in the 800’s to qualify? No. Those with scores much lower will qualify. To find out if you qualify, consider the following:

• Do you have steady employment?
• Do you have excessive debt: if so, you may not qualify if your debt is too high compared to the amount of money you are bringing in each month.
• Do you have a down payment: Down payment amounts are much lower for FHA loans, but some money to put down is necessary.
• Do you have good credit or better: Those with very low credit scores may not qualify for a home loan right now.

To find out if you qualify, it is best to talk with an FHA loan specialist one on one. They will help you to determine not only if you qualify but how much of a home you can purchase, the cost of a monthly mortgage payment, and the current interest rates available. It is highly recommended that you consider FHA loans since they are more affordable and they often cater to a wider array of home loan borrowers.

The local housing market and loan market is really the only concern you should have in terms of buying and selling property right now. While the big picture may seem dark, there are plenty of bright spots under that dark cloud. These are mainly average neighborhoods dotting the country and often are great places to call home.

The FHA, or Federal Housing Association, has grown in the last two years to a considerable size. This just shows how important this one agency can be when it comes to helping a country to get out of the mortgage hole it is in. The latest numbers are quite considerably. By the end of 2008, FHA will provide guarantees for as many as 3 in 10 American home loan borrowers. 

FHA provides only a guarantee to the loan, not the loan itself. Traditional mortgage lenders qualified to work with FHA still fund the loan and service it. Should the borrower default on the loan, FHA will pitch in to help cover the costs of the loan. This helps to insure the loan and therefore allows more lenders with assurance that they can lend to these buyers.

Many of the people that will be included in that picture are those with bad credit. Others are those who do not have any verification of income on the books (FHA loans can help hard to qualify lenders to get these loans.)

As you may know, the HOPE for Homeowners Program kicked in on October 1st, 2008 and gives FHA even more opportunity to help the average homeowner. The program is aimed at helping people to get better loans.  The program was put in place through Congress action and the Bush Administration. It gives FHA the ability to guarantee up to $300 billion in home loans. These are fixed rate home loans specifically for those who are struggling.  The program will be in place over the next three years.

What does this mean for the outlook? According to the Congressional Budget Office, there will be about 400,000 households in the US that will get FHA home loans in the coming years.  OF those, it claims that about one third of them will fall behind at some time on those loans.

What’s the risk?  There is risk here in the Hope for Homeowners program, according to some. They fear that the government is taking on some of the worst loans out there and that this could pose a risk.  Yet, FHA loan requirements are out there and they are much stricter than those offered subprime loans in the not so distant past.

FHA loans make sense and the ability of the FHA to provide this type of backing to the American family is necessary. The fact is: the only way to get out of the housing slump is to get good home buyers buying homes. This program and others like it, will continue to do that.

In recent weeks, I have heard a lot of people talk about the mortgage industry and how they can or can’t get a home loan. There are a number of options out there for you.  Here is some key advice to consider.

You’ve Got Great Credit

Do you have a good credit score (700 or above) and have a sizable amount of money to put down as a down payment?  You will need at least 20 percent, for example, to qualify for these loans.

In this situation, you have what you need to make it big.  Most traditional mortgage lenders are quite stable and able to provide you with the loan you need. The good news is you will not pay much for it. Interest rates are very low, with good credit, you may see interest rates as low as 5 percent in the next few months for well qualified borrowers.

You Don’t Have Great Credit

On the flip side, you also need to consider those who do not have a great credit score. If you want to buy a home, then you still have options. Here’s some advice.

If you have at least 3 percent to put down on the home and you have a credit score at or above 580, then you should consider FHA loans.  The FHA provides you with a range of opportunities including refinances of the current loans you have.

If you do not have these qualifications, I advise you to wait and get to that point. Subprime loans are highly costly and very risky. You should not attempt these even if you have the best of intentions.  How do you know if a lender is trying to qualify you for these loans?

• Ask them if the loan is a subprime loan
• Find out what the terms are
• Avoid all adjustable rate loans as much as possible: interest rates are as low as they are going to go, most believe, so you won’t save anything with these low, teaser loans.
• Get a second opinion. If you are unsure of the lender, or their intentions, talk to another lender.
• Don’t be convinced your home is worth more than your appraiser says it is: get your own appraisal to be sure they are not offering a too high estimate.

There are great loans available, especially FHA loans. Many people will qualify for these loans. As time goes on and the markets stabilize, more home loans will be available with less constricting terms, but until them make the best decision for you in the long term.

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.

As someone that writes about home loans on a regular basis, I fully understand the frustrations so many are going through. The fact is, people are wondering several things.

• Some think mortgage companies are going to come calling to demand payment on full on their mortgage 

• Some people believe that no one will get mortgage loans again, not for a long time

• Others think that the mortgage crisis is going to cause them to lose their home even though they have made payments regularly throughout their loan

These are all mistaken beliefs.

While there are some instances when the mortgage companies can come demanding payment in full on your loan, this only happens when you are in foreclosure, after months of trying to get you back on track. Most lenders want you to keep paying them, they don’t want to own your home. For those who are making timely payments, your mortgage loan will not become due immediately.

As for the second concern, there is some concern here, but not nearly as much as you may think. First, there are loans available from nearly all of the traditional mortgage lenders in business. The requirements are stricter with some lenders requiring more down and a higher credit score before they will lend. Call it the “once burned, twice shy” scenario with home loans.

At the same time, for those without a lot of money to put down and with a credit score that is not as high as it could be, there is the FHA.  FHA loans are still available for most American home buyers. These loans require much less down (just 3%) and they provide you with an outstanding assortment of opportunity: even the fact that these are fixed rate loans.

On the final concern, as long as you keep paying your mortgage back on time, your loan is going to be in good standing and to the mortgage lender, you are a good person to have on board. The only way for lenders to make money is to lend money and charge interest.

Is Now A Good Time To Buy?

Here’s another situation I hear which is one of the biggest problems with the market right now. People who have the money and want the home are avoiding the market. This is a mistake and here’s why.

• The current interest rates on home loans are at an all time low: just 5 percent in some cases. This is the perfect time to buy.

• Lenders want good buyers. They are actively looking to lend to those that want to buy.

• Home prices are also low: lower in some areas than they have been in ten years.

No matter which way you look at it, now is the best time to buy a home, if you qualify for a home loan. If you are not sure if you do qualify, a good place to start looking is through the FHA loan specialists. These professionals provide guidance to prospective home buyers. They also have the ability to help you qualify. This is not bad mortgages, these are good mortgages and some of the safest investments to be in right now.