FHA Home Loans
What is a FHA Loan ?
Inevitably when searching for a home loan you come across FHA
home loans . There are 6 main FHA loans types and you can read about
all 6 here. For a quick overview FHA loans are designed to get
anyone that normally wouldn't qualify (on a financial equation) for
a typical loan.
The FHA loan program is run by HUD (the Housing and
For qualified mortgage applicants, the Federal Housing Authority
helps the borrower drastically reduce interest rates or more easily
qualify for a home loan by acting as a guarantor, reducing the
lender's risk and insuring that the homeowner's loan will not enter
Further, because FHA-insured loans are guaranteed to the lender, the
FHA enforces limits on certain loan fees the lender may charge, and
allows financing many fees in addition to the principal amount of
FHA loans also allow the borrower to make extra payments on the
principal of the loan in addition to their regular, monthly payment
at any time.
In exchange, the FHA charges a small percentage of the home's value
at the onset of the mortgage, and requires reasonable monthly or
annual premiums for the mortgage insurance.
FHA LOAN limits Rise 16% for 2008 !
The bottom line is that it means when shopping for a FHA LOAN the
amount you can borrow has risen 16%. This increase is to help
cover the rise of home sales the past few years. It means you are
more house, you wont have to settle for a home that isn't large
enough or allows you to buy a home in a better neighborhood.FHA LOANS
- Fixed Rate Mortgages
- Adjustable Rate mortgages
- Graduated Rate Mortgages
- Growing Equity Mortgage
- Energy Efficient FHA Mortgages
- FHA Condominium mortgages