FHA Improvements Could Benefit You

What is FHA Mortgage Insurance?
The Federal Housing Administration (FHA) insures mortgages offered by banks, savings associations, and other financial institutions. An FHA-insured mortgage is backed by the full faith and credit of the United States government. While FHA does not make loans, it benefits the homebuyer by providing mortgage insurance which encourages financial institutions to make affordable financing available.

What Are the Benefits of an FHA Mortgage?

FHA offers low down payment options, eligibility with less than perfect credit, a loan at a reasonable cost, and help if there is ever trouble making the mortgage payment.

Because an FHA mortgage insures the lender against loss, an FHA mortgage typically has an interest rate that is competitive with the best in your market and lower than the rates charged for subprime and other non-prime
mortgages.


FHA is designed to help people buy a home and to help them keep it. In return for protecting lenders against loss, FHA requires financial institutions to offer assistance to borrowers experiencing difficulty making mortgage payments.


In addition to its standard Section 203(b) Mortgage Insurance Program, FHA has a number of other valuable programs designed to facilitate homeownership:
FHA Adjustable Rate Mortgage (ARM) Products
• FHA offers a standard 1-year adjustable rate mortgage (ARM) as well as 3, 5, 7, and 10-year ARM options.
• ARM products may be good options for those who plan to own the home for only a few years, expect an increase in future earnings, or expect a decrease in interest rates.

FHA’s Limited Repair Program
• FHA’s Section 203(k) Limited Repair Program is an excellent financing option for you whether buying or selling homes — especially when repairs are identified during a home inspection or appraisal—because it gives buyers the ability to make repairs after closing.
• Buyers can finance up to an additional $35,000 into their mortgage to pay for minor remodeling such as replacing flooring, installing new appliances, and painting the interior and/or exterior of the home.


Many aspects of the FHA mortgage application process have been streamlined to make the process more userfriendly and efficient. For those of you seeking to buy own a home, you may find that theFHA programs are a valuable asset.


To learn more about FHA products, visit FHA’s website at http://www.fha.gov/ or call 1.800.CALL FHA.

Comments

Unknown said…
nice article.... I also came across the following website, which is quite informative regarding FHA loans....
http://www.eaglenationwidemortgagetx.com/

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