FHA Loan

Did you know that a FHA loan can be the single most forgiving loan to purchase or refinance your home? This federally insured loan is managed by the Federal Housing Administration, and serves to provide homeownership to families that might not other wise qualify for some mainstream mortgage products.


Congress created the Federal Housing Administration in 1934 following the “Great Depression. When FHA mortgages were created two million workers had lost their jobs, existing mortgage terms were difficult if not impossible to meet. The mandate was to provide homeownership to displaced victims of economic oppression. In 1965 FHA became a part of the Department of Housing and Urban Development (HUD). FHA is the only government agency that operates entirely from its self generated income and cost the tax payers nothing!

Why You Should Consider FHA Mortgages:

  • Simpler Qualifying: Unlike conventional loans that adhere to strict underwriting guidelines, more flexibility afforded to your individual situation.
  • No Down Payment: There is no required investment on the part of the homeowner.
  • Credit Forgiveness: FHA does not hold past financial histories or indiscretions against you.
  • Favorable Terms: Historically, the interest rates offered with this mortgage program tend to be the most favorable with respect to long term stability. FHA can and does match any interest rate offered on conventional products. This loan does not have any type of pre-payment penalty!
  • Commitment to Success: FHA strictly forbids the arbitrary foreclosure on the loans which it insures. Direction is given to banks funding FHA loans to allow homeowners every reasonable opportunity to get back on track and keep their homes before even attempting a foreclosure action.

FHA does not actually fund loans but rather insure banks against potential financial loss in the event a homeowner does eventually default. This insurance is included within the monthly payment homeowners make. The term is mortgage insurance and it is calculated as a minor percentage of the total amount that you may borrow from a bank.

See Also:

Stop to consider a FHA loan before accepting other financing alternatives. Consult with a Real Estate Lawyer about the tremendous benefits available with a FHA loan.


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