Not understanding basic mortgage financing can prove to be devastating in the long run in terms of personal finances. Home buyers should take very careful steps when dealing with a commitment that will last a good part of your lifetime.
Being overly anxious to purchase a home and finally getting it only to be forced to let go of it after a few years is pretty much the extremes of emotional ups and downs to say the least. Add to that the money spent on your former home, it would be like adding salt to your wound.
Therefore, to aid individuals who are either first time FHA loan borrowers or repeaters, here are the top 5 basic information you need to know before acquiring an FHA loan for a new home, refinancing and others.
- The Department of Housing and Urban Development, otherwise known as HUD, umbrellas the Federal Housing Administration (FHA) which is the administrator of the government’s home loan insurance platform. The FHA insures the loan of a qualified borrower for the lender.
- The FHA loan is not as rigid as conventional loans that are sold off to the Federal Home Mortgage Corporation (Freddie Mac) or to the Federal National Mortgage Association (Fannie Mae). It is more flexible than almost any other conventional lender’s offers .
- Numerous individuals have this belief that FHA loans are strictly for first-time home buyers which is, of course, untrue. This type of loan is available to everyone and may be used to either refinance or purchase a home. They also do not require your current loan to be an FHA loan when you wish to refinance your debts and obligations.
- You can get an FHA loan even if it’s your fourth home already.
- A major setback to obtaining an FHA loan is that the administration puts a limit to the allowable loan for a borrower.
When getting an FHA mortgage loan, it is important to always have pertinent documents regarding your income and credit status on hand to facilitate processing. They would require a precise accountability of your expenses off your income as well as proof that you have a stable income.
If, however, your credit is near excellent, you may want to opt out for an FHA loan and check out standard conventional mortgage options. Most often than not, you may find even better deals from them compared to an FHA loan. Whatever the case may be, it is always worth the extra time spent in seeking out competitive offers provided by conventional lenders and FHA programs.
Coast 2 Coast serves home buyers in Florida, Georgia, Tennessee, Alabama, and Virginia. Please call us with questions at ph: 904-810-2293 or just visit www.Coast2CoastLending.com