Let FHA Loans Help You
September 12, 2007
In 1934, under the Roosevelt administration's programs to pull the U.S. out of the Great Depression, the Federal Housing Administration was established. The FHA loan program provided mortgage insurance which helped the banks to reenter the home lending arena. The program aided the buyer by requiring only a 3% down payment versus the 20%+ required in the 1920's and 30's. It was a popular financing program until the late 1990's when lender's developed a variety of programs that allowed buyers to purchase with 100% financing. In our southern California real estate market, the FHA loan also disappeared as home prices exceeded the maximum loan limit of $362,790.
If you check my median price charts of yesterday's blog, you can note that only 3 communities had median prices in excess of the FHA loan limit. With the disappearance of 100% financing, the 3% down payment becomes attractive to home buyers. The borrower is also able to to finance tthe upfront mortgage insurance premium into the mortgage.
Another advantage of obtaining FHA financing is the assurance that you are dealing with a reputable lender. Many mortgage brokers do not offer FHA loans because of the stringent review requirements that the government imposes on the broker. With all the media discussion of fraudulent lending practices, as a borrower, you will know that your FHA loan terms will be fully disclosed. A discussion with an FHA lender will also let you know the amount of loan for which you qualify.
If you would like to explore FHA financing more completely, call a mortgage rep at Financial 2000(909-748-7110)
In 1934, under the Roosevelt administration's programs to pull the U.S. out of the Great Depression, the Federal Housing Administration was established. The FHA loan program provided mortgage insurance which helped the banks to reenter the home lending arena. The program aided the buyer by requiring only a 3% down payment versus the 20%+ required in the 1920's and 30's. It was a popular financing program until the late 1990's when lender's developed a variety of programs that allowed buyers to purchase with 100% financing. In our southern California real estate market, the FHA loan also disappeared as home prices exceeded the maximum loan limit of $362,790.
If you check my median price charts of yesterday's blog, you can note that only 3 communities had median prices in excess of the FHA loan limit. With the disappearance of 100% financing, the 3% down payment becomes attractive to home buyers. The borrower is also able to to finance tthe upfront mortgage insurance premium into the mortgage.
Another advantage of obtaining FHA financing is the assurance that you are dealing with a reputable lender. Many mortgage brokers do not offer FHA loans because of the stringent review requirements that the government imposes on the broker. With all the media discussion of fraudulent lending practices, as a borrower, you will know that your FHA loan terms will be fully disclosed. A discussion with an FHA lender will also let you know the amount of loan for which you qualify.
If you would like to explore FHA financing more completely, call a mortgage rep at Financial 2000(909-748-7110)
posted by shirley harry at 8:47 AM
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