Despite the fallout from the mortgage crisis that developed a few years back, there are still many opportunities for people with less-than-stellar credit to obtain a mortgage to buy a home. The Federal Housing Administration (FHA) loan program may be an option for many individuals who thought their dream of owning their own place wasn’t possible. Here are the basics on FHA loans to help you determine if you’re eligible and how the program can benefit you.
FHA Loans 101: This type of mortgage is backed by the FHA, though the funding doesn’t come from that agency. In a nutshell, the FHA insures a loan for a borrower that secures a mortgage through an approved lender. The lender is motivated to provide the loan because the risk of loss is less if the borrower defaults. The FHA loan program enables people to own a home, despite the fact that they might otherwise not qualify – and interest rates are quite reasonable compared to traditional loans. (more…)Read More »