FHA Mortgage Loans
FHA Mortgage Loans also called the Federal Housing Administration (FHA) Mortgage Loans enable borrowers to purchase a house with lower down payments. These loans are typically aimed at lower income citizens.
FHA Mortgage Loans
It is a step taken as early as 1930 to enable low income group citizens purchase a house at an affordable cost. These federal assistance mortgage loan programs are normally issued by lenders who are federally qualified. It is a self supporting initiative that offers to make purchase of house a possibility.
The FHA Mortgage loans are insured by the Federal Housing Administration (FHA). With changing times and more and more private lenders entering the market, a number of private mortgage insurance (PMI) are offered to buyers. FHA Mortgage Loans are now open to all those who could not otherwise qualify for PMI and those who just cannot afford a regular down payment.
Getting A FHA Mortgage Loan
The Federal Housing Administrations does not offer loans to anybody. All it does is that it offers to insure the loans offered by other lenders. There are lenders who originate FHA loans. A prospective borrower should approach those lenders who offer FHA loans.
Soon after identifying the lenders, it is important to get to know their payment terms and the rate of interest charged. The mortgage insurance for these loans is provided by the FHA, which certainly reduces the cost of the loan and the down payment.
The lender on the other hand does a risk analysis of the borrower, his credit worthiness and payment history. These loans are normally extended to those credits worthy borrowers who cannot otherwise qualify for regular underwriting conditions.
There are different kinds of FHA mortgage loans and they are as follows
FHA Mortgage Loans at Fixed Rate
FHA Mortgage Loans at Variable or Adjustable Rates
FHA Mortgage Loans with Graduated Payments Method
FHA Mortgage Condominium Loans
FHA Mortgage Energy Efficient Loans
FHA Equity Mortgage Loans
The loan limits on FHA loans are based on the types of housing loan and state in which the property is located.
Loans are disbursed on the basis of debt income ratio. As borrowers it is important to choose the loan type depending upon your debt income ratio and proceed looking for a suitable loan option.