Already on ArticleSlash?

Forgot your password? Sign Up

FHA Mortgage Lender Brings You That Beautiful Home

 


Visitors: 141

Many mistakenly believe that bad credit or lack of down payment closes all doors to home ownership. This is not the case. An FHA mortgage lender can make that home ownership dream come true. FHA stands for the Federal Housing Administration. It was created in order to facilitate home ownership for Americans previously shut out of the system.

There were many reasons stopping a large number of people from owning a home. The first relates to credit. Most private lenders have minimum credit score requirements. If you have poor credit that serves to eliminate you for consideration for most private lenders. However, with an FHA backed loan your low credit score isn't an issue.

An FHA loan only has two stipulations in terms of credit. The borrower could not have filed for bankruptcy within the previous two years. If so, you must wait for the two year period to have elapsed before applying for an FHA backed loan. Additionally, the applicant won't be considered if they were subject to a foreclosure within the past 3 years.

The second facet of FHA loan advantages is in the realm of the down payment. Most lenders now require a full 20% down payment. For a brief period recently many lenders greatly lowered this amount. Some were even financing more than the amount of the home purchase. Those days have now ended. Most all lenders have reverted back to the traditional 20% requirement.

Considering the average home price, this often equates to over $15,000 required for the down payment. Many just starting out in life have not yet saved this amount of money. The Federal Housing Administration came up with a solution. FHA loans only require a down payment of 3% of the property's purchase price. This puts the amount required well within most everyone's reach.

Another way that FHA loans make buying a home relates to closing costs. Most all mortgages entail fees and some include what are called “points". These are costs typically borne by the borrower and due in full at closing. These fees can run into the thousands of dollars and present a further obstacle for new buyers.

FHA loans stipulate that half of these costs are absorbed by the lender. This alone saves the borrower significant money. Additionally, the other half of the closing costs can be added to the loan balance. This allows their payment to be spread over many years. The additional amount per month associated with them is usually minimal in this scenario.

If you think that not having enough down payment or bad credit is stopping you from owning a home, then you need to look at a FHA mortgage lender. This program was made for you. Assuming you meet the requirements, an FHA loan is a smart route to clearing the hurdles of getting that mortgage.

One of the best resources we can get is letting a FHA mortgage lender help us with our dream home purchase. For more, visit http://www.MortgageLoans-101.com where you'll find this and much more on your mortgage needs.

(524)

Article Source:


 
Rate this Article: 
 
Bad Credit Mortgage Loan Lender
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

More Than 2 Cents For Home Mortgage Loans And Lender Duties

by: Jeff Moran (May 26, 2008) 
(Finance/Mortgage Refinance)

Lowest Home Mortgage Refinancing Lender - Save Big Money!

by: FrankW Ellis (April 11, 2007) 
(Real Estate)

High Mortgage Interest - How To Navigate Your Mortgage Lender And Grab A Superb .

by: Ariyo Akinlosotu (June 21, 2007) 
(Finance/Mortgage Refinance)

Bad Credit Mortgage Loans: 3 Tips to Help You Save With a Subprime Mortgage ..

by: Louie Latour (January 16, 2007) 
(Real Estate)

Do You Need a Cheap Mortgage Lender? Here Are 4 Ways To Save Money On Your Next .

by: C.L. Haehl (March 12, 2007) 
(Real Estate)

Compare Mortgage Lenders - How to Find the Top Mortgage Lender Around

by: William Perry (October 19, 2008) 
(Finance/Mortgage Refinance)

Home Mortgage Refinance Loan - Choose a Loan, Not a Lender, When Refinancing

by: Louie Latour (January 20, 2007) 
(Real Estate)

Self Respect Brings Out a Beautiful Woman - What is Your Statement?

by: Melissa Aytche (October 02, 2008) 
(Self Improvement/Self Esteem)

How to Choose a Mortgage Lender

by: Herald Gumpsten (August 08, 2008) 
(Finance/Loans)

Bad Credit Mortgage Loan Lender

by: Steven Copper (July 28, 2008) 
(Finance/Mortgage Refinance)