| The FHA was created in 1934, and since that time it | | | | borrower for a couple of reasons. First, you don't need |
| has insured over 35 million loans for borrowers, more | | | | stellar credit to quality for a loan. Since the whole sub |
| than any other organization. To clarify, the FHA does | | | | prime fiasco, lenders are a lot tighter about who they |
| not fund your loan, they insure it. They make it safe for | | | | fund loans to. Having an average or above average |
| lenders to do the loan because the FHA will pay it off | | | | credit score is no longer good enough. However, |
| if you default. | | | | depending on your debt to income ratio, your income, |
| In 2006, President Bush convinced Congress to pass | | | | and a few other factors, it is often good enough to |
| the FHA modernization proposal which made it | | | | secure an FHA loan. |
| possible for the FHA to help more deserving families | | | | Another thing that holds people back is a bankruptcy. |
| purchase homes. The FHA mortgage rate at that time | | | | FHA loans consider people with a previous bankruptcy, |
| was 5.5%. | | | | again depending on other factors. The best way to |
| Today's current FHA mortgage rates are as follows. | | | | ensure that you will be financed, if you have bad credit |
| The interest rate is 6% for a 30 year fixed loan with | | | | or a bankruptcy, is to meet with a credit repair |
| 1.875 points. The interest rate for a 15 year fixed loan | | | | professional. They are often able to help improve a |
| is 6% as well, but with 1.25 points. | | | | credit score immediately, and also ensure that you |
| An FHA loan may be the best option for you as a | | | | take the right steps to lower your debt to income ratio. |