The Federal Housing Administration was started in 1934 to improve housing conditions in America, and more than 70 years later, that is still exactly what they are doing. They provide loans for purchasing houses as well as programs to refinance a house that you are already living in but need to refinance. One of their most popular types of financing is the FHA home loan going to first time homeowners.
In any given year, somewhere around 75% of the financing approved by the Administration goes to first time homeowners. Younger people who are looking to own their first homes are frequently daunted by house prices and the available financing options. When you look at a mortgage plan and it says 30 years, some people start to feel a little faint in the head. For a lot of first time homeowners, the prospect of paying for their house over 30 years means that they will be paying their house off for longer than they have been alive. This prospect is, understandably, sometimes a baffling one.
The folks at the Federal Housing Administration work with a variety of clients looking to buy a house or to refinance their current house. Their rules are quite simple when it comes to who can finance a house and who can not, but one rule to keep in mind is that borrowers can only hold one FHA home loan at a time. So if you are looking to finance a second residence, but are still paying for your first house, the Federal Housing Administration will not be able to help you out. Of course, this stipulation does not affect first time homeowners.
The financing plans given to first time homeowners are identical to those given to others, with the exception of those who have lost their residence in a disaster. Only disaster victims can obtain a financing plan without putting down any percentage of the purchase price. For all other borrowers, including first time homeowners, the amount that has to be put down up front is 3% of the total purchase price.
Beyond that universal 3% down payment for an FHA home loan, your interest percentage will depend on many factors. Starting interest rates are between 6-6.5%, but there are a lot of additional factors that are taken into consideration when calculating what the exact interest rate will be for each customer. Your credit score is considered, as well as the amount you are financing, whether or not you have a co-borrower (non-resident) and whether or not the house you are financing is a manufactured one.
If you are in the market for becoming a first time homeowner, and are not quite sure where to start, contact the folks at HCI Mortgage who specialize in helping clients with an FHA home loan. You can visit the website at http://www.fhatoday.com for more information and to easily fill out the application online.
If you are a first time homebuyer or someone with a tattered credit score, the Federal Housing Administration (FHA) home loans may sound alluring to you. With low interest rate, backed by the government (in case you default) are two among the other benefits by the FHA. What is exactly the ? The FHA home loan is mortgages that are insured by the Federal Housing Administration, a United States government unit under the Housing and Urban Development (HUD). The FHA does not give loans but they insure the loans in case you default, so that the FHA approved commercial lenders could give you a better offer and rates which you won’t be having with a traditional one. Looking back, the FHA home loans are conceptualized in 1930's during the Great Depression era in response to the growing rate of defaults and foreclosures. The good news is the FHA is for every American, but you have to qualify for the FHA home loan to get one. Try this checklist to see if you pre-qualify for an FHA home loan: 1. Do you have a steady employment history of at least two years working experience with your current employer? (Stability of job and income is the main factor.) 2. Do you have an increasing income? So that FHA can correctly assess your paying ability, show them that you are earning a fixed/rising amount in your current job, not a fluctuating one. 3. Can you boast about your credit report? It is FHA's requirement that all their applicants are in good credit standing although it’s not the main requirement. However, the FHA requires that you don’t have a more-than-a-month late payment within the last two years in their credit reports. 4. Do you have any history of bankruptcy? Better have it two years or more, ago. Show that you had regained financial stability for the past two years. You should be in a good credit standing for two consecutive years. 5. Do you have foreclosures? Better have it three years old at the very least. You should have a good credit standing for the past three years. 6. How many percent do you apply for your loan? Do not exceed 30% of your total monthly income. If so, your application will likely be denied. Look and settle for a house that is just within the set limits. Being pre-qualify for the FHA loans is just the first step. FHA will review your application and proceed from there. The pre-qualification step assesses your income, assets, and your ability to pay. Afterwards, you are to show it to the lender who’ll study your case. You'll get the loan once they see that you are indeed, financially stable. If you qualify, don’t hesitate to ask what other advantages they are offering today. If you can’t pre-qualify for the FHA loan, don’t waste your time and try to look for other ways. But my suggestion is, prepare yourself from now on, so that three years from today, you could qualify for an FHA home loan (which is so far I see, the best option in home loans).
Both Iprwire Staff Writer & Hendro Iskandar are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Iprwire Staff Writer has sinced written about articles on various topics from Internet Marketing, Flirting Tips and Home. is a division of HCI Mortgage. All mortgage applications submitted through. Iprwire Staff Writer's top article generates over 1220000 views. to your Favourites.
Hendro Iskandar has sinced written about articles on various topics from Debts Loans, Car Loans and Debts Loans. About Author:About the author: Hendro Iskandar in . Give you up to date information in. Hendro Iskandar's top article generates over 18100 views. to your Favourites.