The General public has not been informed about the differences between the FHA Insured mortgage or Conventional Mortgage. Conventional loans require a larger down payment and rely heavily on credit. And borrowers with less than perfect credit can find themselves paying a much higher interest rate with a conventional mortgage. Many borrowers who were previously turned down for a conventional mortgage find that they can qualify for a FHA mortgage with much lower payments. At http://www.fhamortgageprograms.com/ we are committed to providing information to Americans about the benefits about the FHA mortgage. The most important aspect that borrowers need to understand is that FHA does not make loans to borrowers. FHA insures FHA approved lenders against borrowers who default on the mortgage. However this insurance does come at a small price for the homebuyer. The little money spent has been the best option for homeowners across the nation and will continue to be the mortgage of choice. FHA mortgage fees mortgage fees include a 1.5% UP Front Mortgage Premium that can be financed into the loan amount. And .05% or half of 1percent paid yearly financed loan amount. The advantages for homeowners include making the federally insured mortgage easier to qualify for, but the FHA home loan provides more security to homeowners than any other mortgage available. For example. Many homeowners who were unknowingly lured into adjustable rate mortgages now under the "FHASECURE program", just passed by the Bush administration can refinance their adjustable rate mortgage into a low fixed rate mortgage. This program offered by FHA is expected to save half a million homeowners from an unbearable increase in monthly mortgage payments. This program only offered from Federal Housing Administration, (FHA) to help curb the foreclosures across the nation. In addition to FHA SECURE in times of financial difficulty homeowners with an FHA mortgage have more options to avoid foreclosure and a higher probability of not losing their homes do to FHA mortgage programs. One of which is the FHA Partial Claim. A homeowner who has suffered a temporary hardship but can prove they can afford the mortgage payments again can apply. IF approved for the Partial claim the mortgage lender will execute a promissory note and take second position to your first mortgage, the loan is payable to HUD. The non interest bearing promissory or "Partial Claim" notes are not due until the borrower either pays off the first mortgage or sells the property. In addition, many FHA borrowers are unaware that the FHA home loans are Fully assumable, meaning that with the lenders approval you could assign your delinquent mortgage to a friend, family member or a buyer, these options add more protection for the American homebuyer.
Below I have included some frequently asked questions for those wanting more information about the FHA home loan.
Why should I Choose an FHA home loan?
There are many reasons to chose FHA, if you are a first time homebuyer and you don't have a lot of money to put down on a house and want to keep your payments as low as possible and you may have had credit trouble in the past then the FHA mortgage may be for you. FHA does not look at the credit. In order to qualify for FHA mortgage the borrower must show stability.
Minimal Downplayed and Closing Fees
- FHA requires a down payment less than 3% of Sales Price and borrowers can borrow the 3% from a friend, family member or a non- profit.
- FHA allows gifts and seller concessions up to 6% of the sales price.
- No reserves or bank savings required.
FHA is forgiving on past credit issues
•· No minimum FICO score or credit score requirements.
•· FHA will allow a home purchase 2 years after a Bankruptcy.
•· FHA will allow a home purchase 3 years after a Foreclosure.
We have provided more FHA frequently asked questions located at http://www.fhamortgageprograms.com/faq/fha.shtml
There are many FHA insured lenders for Mobile homes as well, For those of you looking to purchase a mobile home we have include some frequently asked questions in regards to Mobile Home Loans http://www.fhamortgageprograms.com/mortgage/manufactured-homes.shtml
www.FHAmortgageprograms.com AKA 1st Continental Mortgage brokerage is licensed in Alaska,
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