| The FHA loan, also known as the Federal Housing | | | | luck. |
| Administration mortgage loan, is offered in the United | | | | Recent legislation has made "FHA-Secure" a new |
| States as a method for low-income families to find a | | | | program endorsed by the Federal Housing |
| mortgage loan. | | | | Administration. Residents that qualify will be able to |
| Qualifying for an FHA mortgage loan will still take a | | | | refinance their FHA mortgages and make them |
| somewhat fair credit rating. Although low-income | | | | adjustable-rate. FHA-Secure is a program that has its |
| families typically have poor credit, the FHA mortgage | | | | requirements as well- you must be current on your |
| loan process is streamlined for those who have a | | | | mortgage and have no further blemishes on your |
| rating of 580 and greater. If you have not built credit, | | | | credit rating since you have obtained the original FHA |
| you may work with the Department of Housing and | | | | mortgage loan. |
| Urban Development to establish a credit rating based | | | | As a last note of caution, do know that there are such |
| on your past with financial responsibility. | | | | things as predatory lending in regards to FHA |
| The down payment requirements for an FHA loan are | | | | mortgages. Lenders might take advantage of the fact |
| bare-bones. You may only have to spend as little as | | | | that you are not able to pay a mortgage, yet offer a |
| 3% of the total of your mortgage loan in order to get | | | | loan anyway because of the guarantee the FHA puts |
| approved. This is compared to regular mortgages that | | | | on the loan. Acts such as these are illegal, and if you |
| might span 5%-10% as a minimum. Closing costs are | | | | feel that you have become victim to predatory lending, |
| also discounted as those who qualify may receive up | | | | you should check with the U.S. Department of Housing |
| to 6% towards closing costs. | | | | to make a claim. |
| For the FHA to guarantee your loan, they will need to | | | | Closing Comments |
| know that you are trustworthy. The normal rules apply: | | | | FHA programs have allowed residents to get the |
| a look at your employment history, citizenship in the | | | | homes and properties they need to start a family- with |
| United States, debt ratios, and whether or not you | | | | almost no money down and payments that are |
| have declared bankruptcy in the past decade. The | | | | tailored to their budget. For more information, check |
| FHA only guarantees loans for those who qualify- it is | | | | with a mortgage broker to get free consultation and |
| by no means a magic cure for anyone down on their | | | | quotes. |