By Carrie Reeder
Most borrowers have heard of FHA home loans. They are very
common. You hear about them mostly as loans for first time
borrowers, which is common. However, most people don't realize
that FHA loans can also be does for refinancing. They are not
only for purchasing a house.
HUD owns and operates FHA, which is a program designed to help
borrowers who might have difficulty buying a house. If the
borrower falls within FHA's requirements FHA insures the loan
for the lender, which makes the loan very low risk for the
lender, which is very good for the borrower. It could mean a
lower interest rate, better terms and just an overall better
FHA's requirements are; a down payment of 3-5%, the home must
be under the FHA's set loan limit for the county that the
borrower lives in and a few other small requirements.
The main advantage to an FHA loan, is if you can fall within
their requirements, your credit history or income level, will
not hold you back from getting a home loan. If you are getting
turned down from other lenders because of a high debt to
ratio or because your credit is bad. You may want to consider
applying for an FHA loan, where those requirements are either
non-existant or much more flexible.
If the idea of down payment is holding you back, consider
that FHA loans allow the use of a non-profit organization as a
source for the down payment, which opens up the option of
down payment assistance programs like Neighborhood Gold.
To view our list of recommended mortgage lenders online, who
offer FHA programs, visit this page:
About The Author: Carrie Reeder is the owner of
www.abcloanguide.com, an informational website about
various types of loans.