FHA Home LoansWant An Easy to Qualify Real Estate Loan Check Out FHA Home Loans FHA loans are easy for most people to qualify. And the 203K loan is a great real estate loan for home buyers that want to buy fixer-uppers. FHA loans are great for first time home buyers because family members can gift the down payment. However you will be required to have a gift letter to qualify. FHA Home Loans were created to help American citizens with low income to moderate incomes buy livable housing.
Before FHA real estate loans were widely available, lower income people were unable to qualify for home loans. As a result many families that would not qualify for home ownership now own their homes. FHA loans are insured by the Federal Housing Administration which is a part of the Department of Housing and Urban Development (HUD). This government agency makes millions of FHA insured real estate loans each year through approved lenders. Government backed FHA loans are some of the best real estate loans available today for low to moderate income home buyers.  FHA and HUD do not make real estate loans, they insure the loans so FHA approved lenders that make and fund FHA loans are protected from losses caused by mortgage defaults. Also see Manufactured Home Loans as an alternative for low cost housing.
Facts About FHA home Loans • Down payments are only 3.5% of the purchase price. • Buyers closing costs can be paid by the seller. • FHA loans can be used to purchase manufactured homes. • FHA allows energy-efficient home up-grades to be added to the mortgage. Lenders are willing to finance low income home buyers because the majority of the risk is insure by FHA. Otherwise it would be almost imposable for low income families to buy housing.
The way FHA works is they guarantee lenders that if the real estate loan goes bad (forecloses)the lender will be paid off and FHA will end-up owning the property. One thing to keep in mind, if you are a soon-to-be home buyer with a low to medium income, FHA loans have easy qualifying requirements and it's fairly easy to get approved. Just contact one of the FHA approved lenders in your area for information. If you plan to finance your home using an FHA loan, have your Realtor Buyers/Agent include that information in your purchase agreement.  Both FHA and VA loans require the seller to pay certain fees that borrowers are not allowed to pay. This is the law. When real estate markets are hot most sellers refuse to sell to their homes to FHA or VA buyers. So if you are serious about buying a home and using FHA home loans to finance the purchase, don't wait, do it now because there are still lots of good homes to choose from, but this will start to change soon.
FHA prohibits buyers from paying what are referred to as "non-allowable" fees that are generally charged by lenders, title companies, escrow companies and settlement agents. These fees must be paid by the seller. That is why in good real estate markets few sellers will sell to FHA or VA buyers.
Some of the benefits associated with FHA loans. • Borrowers do not need a high income to qualify. • Low down payments are typically 3.5% of sales price. • Borrowers family may gift the down payment and closing costs. • The seller may pay some of the closing costs. FHA real estate appraisals are very detailed and homes must be in livable condition. Appraisers are required to make sure the home meets minimum housing requirements as well as evaluate the real estate market conditions and future value. Much more interesting information about FHA can be found on this real estate website. Remember FHA home loans are easy to qualify for because credit requirements are less stringent and they offer low down payments and very competitive interest rates. FHA HOME LOANS: Something to keep in mind, and that is buying real estate can result in legal problems, so if you need affordable legal assistance or want to do-it-yourself go to Jurisdictionary WAtch the FREE Instructional Videos. Left Side Half Way Down...
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