The Federal Housing Administration(FHA) provides mortgage insurance, backed by the U.S. government, on loans made by any qualified lender.
This protects them from loss if the homeowner should default on the mortgage loan throughout the United States and its territories.
FHA has now become the single largest insurer in the world, with over 34 million properties insured since 1934. Ever since then, the FHA has continued to help low to medium income borrowers obtain the dream of owning a home.
Without this help, owning a home would not be an option for many borrowers over the last 70+ years. The FHA to this day retains those original principles helping 100's of thousands every year.
If your ready to take the step towards purchasing your own home, ask yourself these questions:
If you can answer yes to all of them, chances are good you'll qualify for a FHA mortgage loan.
There are some big advantages for borrowers who qualify for FHA loans:
The current FHA mortgage limit ranges due to the Stimulus Package are $172,632 to $729,750. Click here to check your area.
Insurance premiums (mortgage insurance) charged by FHA are the main disadvantage with FHA loans. You'll pay a onetime nonrecurring insurance premium fee of 1.75% at closing, this can however be added to your loan balance.
There is also a yearly 1.25% of balance insurance premium, this fee is divided by 12 and added to your monthly mortgage payment.
If you've ever had an FHA loan, it would be in your best interest to check with the US Department of Housing and Urban Development(HUD) to see if you are owed a refund, as millions go uncollected every year.
Click here for direct access to the (HUD) refund page.
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