Fha loans - helping americans live the dream
What is a FHA loan? FHA stands for Federal Housing Authority which is a national government organization that helps make it possible for American's to live the dream and buy their own home. Owning homes is good for society and the economy; it's good for individuals and families so the FHA's goal is to help everyone be able to achieve owning their own home.
FHA can help many people to be in a position to buy the home of their dreams. The common term used by realtors for a FHA loan can be a bit confusing and even a little misleading and as such many people just have no idea how a FHA loan can benefit them. The FHA doesn't actually lend money to home buyers but instead a FHA loan is a type of mortgage protection or mortgage insurance. The mortgage protection is given on a mortgage so that there is less risk for the lender.
When you find a home that you want to purchase you will need money to purchase it so usually you would go to a bank to see if you could get a mortgage. When you find a bank with a good mortgage deal you will fill out an application and then the lender will look over your details and decide whether to loan you the money or not. If the lender decides that they will lend you the money they will transfer the money to the seller of the home. You will sign a contract with the lender in which you will agree to pay a monthly payment until the entire loan is paid in full.
That is a fairly basic outline of what is involved when purchasing a home. However it doesn't always run that smoothly and a lender doesn't always agree to lend money, particularly if the borrower is high risk. This is when a FHA loan can help. The FHA will provide mortgage insurance on the mortgage to protect the lender if a situation arises and you cannot repay the loan. When the FHA provides mortgage insurance the lenders are much more willing to loan money. So with this mortgage protection, this is how the FHA can help people to live their dream and own their own home.
If you have had some credit problems and don't have a very good credit history, but you would like to buy your own home then you may qualify for a FHA loan. Not all lenders will work with the FHA so if you are considering a FHA loan then you need to find a lender that will cooperate with the FHA. Your real estate agent should be able to help you to find a FHA preferred lender or you could check the FHA website. If you fill out a request online the FHA will respond with a list of lenders that you could use. If you are approved for a FHA loan you can receive lower interest rates and a smaller down payment. If you don't have the best credit score and are looking at purchasing a home then you should consider applying for a FHA loan.
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Article Source: Messaggiamo.Com
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