FHA Loans

FHA stands for Federal Housing Association,an American organization which has been helping families to own their own homes for decades. This association does not provide loans. It insures loans sold to citizens for the purchase of private property. This property can be a single family home or part of a small complex (up to four dwellings).

The FHA insures approved loans only.

fha loansTo locate a company which is approved by this government organization, consumers must search for a mortgage provider first, whether this is a bank or some other private lender. An internet search will reveal many potential lenders, but not all services and rates are the same simply because a lender is approved. Financial experts advise clients to read all terms and continue to compare lenders to come up with a short list of potential firms to work with. At Wright Financial, we have been helping first time home buyers for over 20 years. We help you secure the best possible fha loan and so you can get home of your dreams.

As for the FHA, one of their roles is to ensure that a company will be flexible with clients. They are advocates for home owners, even clients who have had to declare bankruptcy as little as 2 years before or experienced foreclosure three years ago or more. For instance, a couple might have very little money to buy a suitable home, yet possess a solid or at least decent credit record. The FHA sometimes persuades firms to sell mortgages to these clients if they have demonstrated a responsible attitude and their earnings are adequate. At the same time, they do a number of things to make these financial arrangements realistic for customers.

In particular, approved financial institutions are willing to accept a down payment of less than 4% of the house value in some instances, but can be as high as 10% if the credit rating is not very good.

If a client buys a home which is in obvious need of repair right away, this client can ask to have the renovation costs and purchase loan combined in a single transaction to be repaid at the same time. Another arrangement they facilitate is for a consumer who has not yet established a credit rating to buy a home with a close relative as a co-signer. The combined fees (mortgage, taxes, etc.) can be a maximum of just under a third of the client’s income after taxes.

Although many consumers have been able to buy homes thanks to this program, they must still go through the regular approval process, demonstrating their suitability as borrowers. Lenders will review their credit history and the client will have to prove he has been employed for at least two years. His income has to be steady and reliable. As was the case when FHA loans were first established in the 1930s, the economic situation in the United States is discouraging. Many homeowners are declaring bankruptcy. Financial institutions have foreclosed on thousands of mortgages. Numerous families are unable to secure enough funding to buy their first home. The FHA has always been around to help people purchase their first homes and even to refinance mortgages to stay in their homes. Their services are in great demand during this economic crisis, especially among low-income individuals.

Our other home mortgage services:

Conventional Loans | Veterans Loans | Reverse Mortgage | HARP 2.0 | USDA 100% Rural Development

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