The Federal Housing Administration (FHA) is a government entity that offers mortgage insurance on loans made by FHA-approved lenders. The FHA provides insurance on mortgages for many different types of homes including single-family and multifamily homes. The FHA is completely funded by its own self-generated income, meaning there is no cost to taxpayers for its operation and services.
FHA loans don’t just benefit the potential homeowner – they also are beneficial for the economy as a whole. They stimulate economic development in the form of expanding tax bases and creating jobs.
In fact, the FHA was created in 1934 as a direct response to difficulties in the housing industry such as unfavorable mortgage loan terms, low rates of homeownership nationwide and widespread unemployment among construction workers.
Now is the time to take advantage of the many benefits FHA loans offer potential homeowners. Plus, it’s now easier than ever to qualify! Our home loan professionals will guide you through the FHA loan process with expert knowledge, competitive rates, and first-class service. Get started today.
When taking out a mortgage you are assessed on your ability to repay. If you have student loan debt, this debt is taken into consideration when estimating how much of a mortgage you can qualify for. Until recently the FHA assumption was that if you had student loans you weren’t repaying yet and the monthly required payment was unknown, 1% of the total amount would be your estimated payment. Knowing that you had to pay this amount toward your student loan would reduce the amount of mortgage you could then afford. The good news is that this 1% rule has been reduced to .5% on all FHA loans. With fewer dollars being estimated as future student loan payments you now have access to more mortgage credit.