What is FHA and What Are FHA Mortgages?

Wednesday, September 22, 2010

When it comes to buying your first home, it can be a pretty stressful time especially if you have a hard time trying to afford a loan for a home. In this case, you would want to look into getting an FHA loan. An FHA loan is a loan that is federally insured by the Federal Housing Administration.

These loans are great for people who are eligible under all of the FHA mortgage qualifications, take a look and see if you qualify and find out what you need in order to qualify for an FHA loan.

If you are a first time buyer looking to buy your first home, then you should seriously look into getting an FHA loan. You can get better rates than you would with a conventional mortgage and you will not have a huge down payment that you need to pay. This is great for people who need a place to live, but do not have enough money for the initial down payment.

If you have credit that is less than perfect, then an FHA loan might be the only option available to you. The loan lenders will be able to give you a loan despite your credit because of the fact that the loan will be backed the Federal Housing Administration.

In order to get an FHA mortgage loan there are a few things that you are going to need prior to getting the loan process started. You can write these down and take them with you before you actually apply for an FHA loan.

You will need a valid social security number to prove that you are a legal resident of the United States and you are of proper age to apply for a loan. From there, the lender you choose will need to look at the income that you have coming in as well as what you are spending on other bills each month.

This will help the lender figure out how much you actually qualify for and from there they will even do a simple credit check on you. Now, there is no minimum credit check required to get an FHA mortgage loan but the lender will still look at your credit to determine the interest rate that you are going to be paying on your loan.

The job market and the housing market may be a low right now, but people are still buying and still qualifying for home loans. If you are looking into the market, but you are not too sure that you will even qualify, take a look into an FHA mortgage loan.

These are great for borrowers that can only afford a low down payment, and need easy qualifying. If you think that this might be the way to go for you in terms of home buying, then get online and take a look at all of the FHA eligibility requirements. Once you read over these, you will have a better idea of what you will need when it comes to getting a home loan.

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