Owning a house is the dream of all Americans. Are you one among them? Don’t worry. Getting a home loan will make your dream come true. Are you a first time home buyer? Are you confused with the multiple loan options available? FHA loans are the best choice. Do you want to know more about it?
FHA loans have a history dating back to 1934. FHA is a part of DHU or Department of Housing and Urban Development. It does not actually issue a loan. It just insures your loan. The loan is issued by any FHA approved lender. FHA is a government backed department. This helps the borrowers to get a better deal from the lenders. The lenders are protected if the borrower fails to repay the loan.
Are you planning to buy a home in San Diego? Contact Maureen Martin. She has several years of experience home lending market in South California. You will be pleased to get exactly what you want. Are you still dubious? Do you want to know if the FHA loan is right for you? Go ahead and read more?
Why should you go for FHA loans?
- The down payment is low. Most people are reluctant to apply for a home loan because of the huge down payment to be made. This is not the case with FHA loans. You just have to pay a down payment of 3.5% of your loan amount. This is really a big plus.
- Is your credit score low? Low credit scores usually make you ineligible to get loan. When you apply for FHA loan, a credit score of just 500 or above makes you eligible. If your credits score is low, FHA loans are an excellent choice.
- Second mortgage is possible.
- The closing costs are low.
- You are eligible to get FHA loan even if you don’t have a social security number.
- FHA insures all types of homes including 2-unit homes, detached homes, 3-unit homes, mobile homes, condominiums and manufactured homes etc.
- FHA Streamline Refinance is a beneficial program. This program allows refinance for the homeowners without home appraisals and credit score checks.
What is the maximum amount that you can get for FHA loan?
The maximum amount is $625,000. However, it may vary from one State to another. Make sure you check the maximum amount for your region. You should remember that you can hold only one FHA loan at a time. There is an exception. A co-borrower of an FHA loan can go for another loan if he or she is going through a divorce proceeding.
FHA loans are really a blessing in disguise for low income and middle class family to make their dream of becoming a house owner come true. However, it is important that you find the best lender to meet your needs. It is recommended that you do your homework well before approaching a lender.
This article has been written by Tony Clowes. If you want to make the process of getting FHA loans easy and quick, then just call Maureen Martin. With her wonderful experience in the real estate mortgaging, she will be able to meet your financial needs and ease your home buying process.