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Purchasing your first home can be a daunting task for many first time homebuyers. Many individuals do not have the best credit and finding a home loan that wont kill your paycheck can be a hard task. Others are concerned about the up front costs that come with purchasing a home including money down, closing costs, taxes, etc.

FHA is a solution to many of these questions and doubts.

Today’s FHA terms are pretty straightforward. In fact, in many markets the rates and terms are better than those for conventional 80% / 20% down payment loans.

There is little or no adjustment to the interest rate for an FHA loan, as the rates vary within .125 percent of a conventional loan. (like stated earlier right now are lower due to market conditions)

Normal subprime lenders have employed much higher interest rates in order to compensate for the increased risk of the loan. Because FHA loans are guaranteed, there is substantially less risk for the lender and therefore interest rates are lower

Mortgage insurance is funded into the loan, meaning a premium of 1.5% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
Borrowers can finance 97% of the purchase price and put down 3 percent. In some instances, when using the down payment assistance programs that supplement FHA, the down payment can be zero.
Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.

Stop renting today and purchase your first new home. Why pay for someone else to build equity when you can jump on lower FHA loan rates and build your own wealth? Don’t be intimidated by the thoughts of upfront costs and take that first step to purchasing your first home. It may not be a brand new house but it’s always nice to have a roof over your head that you can say belongs to you.

After some time well spent, we can proudly say that we are FHA GURU’s. Sooo lets begin..

What is FHA?

The Federal Housing Administration. Although you probably are hearing more and more about FHA government loans it is NOT some new program. It has only been since the mortgage meltdown that FHA loan programs have risen to the top and are helping LOTS of people!!

Why FHA?

FHA doesn’t provide the money, they just provide the insurance on the money. Because of the declining housing market and increasing foreclosures/defaulting loans, mortagage insurance companies are becoming more and more strict about whose loans they insure and it’s coming back to bite YOU, the consumer, in the behind. FHA is the governments way of “coming to the rescue”.

Can you benefit from FHA?

Yes. There is a VERY VERY high possibility that a FHA government issued loan/refinance can help you get out of financial troubles.

Ford Financial as a mortgage company is adapting to these current changes. Now-a-days you have to put up your left leg and first born to the big bankers to get a decent interest rate on a loan. We know the “In’s and out’s” of the FHA loan programs.

The next few blogs will be all information about FHA so come back and learn a little will ya?

Realize how YOU can benefit.