FHA Home Loan Tips
The Federal Housing Administration has offered FHA home loans since 1934. Homeowners across the country have sought out these special financing programs to help them buy their first homes, a fixer-upper, a retirement home or even a manufactured home. The FHA, which is part of the department of Housing and Urban Development (HUD), offers multiple FHA loan programs that provide incentives to both homebuyers and mortgage lenders. Whether you need help with a down payment or perhaps a loan with fewer credit restrictions, be sure to read through as many FHA home loan tips as possible so you can use the programs to your advantage.
Facts about the FHA
The Federal Housing Administration is the world's largest mortgage insurer and continues to impact millions of homeowners and families every year. Here are some facts about the FHA:
- Established during the Great Depression, the FHA helped turn the United States into a nation of homeowners. Prior to the development of FHA programs, only four in 10 households owned homes. By 2001, the percentage of Americans who owned homes reached an all-time high of 68.1 percent, according to the department of Housing and Urban Development.
- FHA programs assisted military families after World War II.
- Prior to FHA, most mortgages required a 50 percent down payment and a term of just three to four years with a required balloon payment at the end of the term.
- In the 1960s and 1970s, FHA programs helped build housing developments for seniors and disabled members of the community.
- The FHA is funded entirely by funds generated through FHA mortgage insurance. No taxpayer money goes to its operation. It is the only federal agency that is operated completely from self-generated funds.
Types of FHA programs
The FHA creates programs to help homebuyers who need just a bit of assistance to qualify for a home purchase. These mortgage plans provide incentives to lenders. As a result, it's important for consumers to check into any FHA programs for which they may qualify. There are many FHA programs for single-family homes, including home purchase, refinancing, loan adjustment and mortgage insurance. You also may find specialized programs for first-time homebuyers, seniors, owners who are making their homes more energy-efficient, and even manufactured or mobile homes. These programs can reduce interest rates, lower your down payment or help you qualify even if your credit isn't as established as you'd prefer.
The government works with FHA-approved lenders to provide these programs across the country. Additionally, your state and local governments could have programs and incentives that boost the assistance provided by FHA programs. Through services such as FHALoanTips.com, you can work directly with government-approved lenders and find out whether there's a program (or programs) to help fund your home purchase. When considering a mortgage, be sure to seek out several competitive quotes so you can compare interest rates, monthly payments and factors such as terms and conditions. Act now to find out which programs can help you become a homeowner!