Wednesday, February 27, 2013 - Article by: Matthew DeWeese - Pacific One Lending and Real Estate -
FHA loans are insured by the Federal Housing Administration, a federal agency within the Department of Housing and Urban Development. The insurance on these loans allows lenders to qualify borrowers for a mortgage that have poor to fair credit, have little money for a down payment, have undergone bankruptcy or foreclosed on a property.
FHA mortgages are government-assisted alternatives to conventional financing and are great options for those who want to put less money down or who have lower credit scores. They are popular for home purchases and for refinancing. While these mortgages do require expenses in the form of monthly mortgage insurance, they still enable many homeowners who don't qualify for conventional financing to purchase or refinance a home. Monthly mortgage insurance is required to protect lenders from potential defaults on the loan from borrowers. The FHA loan program has been in effect since the 1930?s when it was developed to help positively stimulate the housing market and make home loans accessible to more people.
Advantages of an FHA Loan:
Call 888-733-4224 to see if you qualify and get your personalized rate quote for an Orange County FHA loan. You may also request a quote online by clicking here.
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