During the Great Depression of the 1930’s, one of the most affected markets in the country was the housing Market. Years prior, housing bids were flying, more money was being spent on not only new homes, but also refinancing, and additions. However, after the crash of the American Stock Market, home sales plummeted, the market was flooded with job losses, and foreclosures.
Part of Roosevelt’s New Deal for the country involved the installation of different agencies, which ranged from returning people to work, to creation of a Public Works System for maintaining infrastructure. One of these “alphabet organizations” as they were so called, was the FHA, or Federal Housing Administration.
The Federal Housing Administration provided insurance for banks and other lending institutions that were burnt from loans and mortgages in default due to the lack of work. Banks were closing by the massive thousands. It was chaos. Finally, as the country began to stabilize, and as more and more people decided to buy homes, the housing Market stabilized. The FHA remained, but with a slightly different usage.
Today, in California, the FHA is responsible for insuring lending agencies’ risks in mortgaging individuals who stand in the lower quadrant of the Credit Cycle. California FHA Loans are usually lower amounts, with low to nearly no down payment. These loans are ideal for the consumer, who has less-than-perfect credit, or for the consumer who has not had the opportunity to create credit, or save a down payment for their home.
At Eagle Nationwide, hundreds of customers everyday are in search for a better option in home financing. One of their best options for lower income families is the California FHA loan. For more information, the staff of Eagle Nationwide are available 24/7 at www.eaglenationwideonline.com
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