Fha Mortgage Loans – The Benefits Of An FHA Mortgage
The Federal Housing Administration (FHA) insures mortgages to allow low to moderate income families to purchase their own home. With government backing, families can buy a home at a lower initial cost. However, there are limitations with this program.
Mortgage Insurance Section 203(b)
The FHA provides mortgage insurance, not mortgage loans to families. However, this program can reduce the cost of a home loan by thousands of dollars. The program also encourages lenders to finance mortgages for people who might just miss the underwriting requirements. For example, FHA loans require a smaller down payment.
With FHAs Section 203(b) program, a homebuyer can purchase a new or used one to four family home. However, the buyer has to live in the home.
FHA Benefits
A FHA mortgage allows some borrowers to qualify for the lower interest rates of a conventional loan, rather than using a higher rate sub-prime mortgage. This can save thousands in interest charges.
Required down payments are also smaller. Instead of the typical 10% down, a buyer can put down as little as 3%. The closing...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
