Are FHA Loans Still Affordable?

The FHA has been around for over seventy years and has been helping Americans afford new homes by making loans affordable and widely accessible to everyone. The loan program was created in the 1930s as a way to help out American families who were struggling through the Great Depression when house foreclosures were at an all time high. Today, more people are turning to the FHA to again help them out of tough financial situations. You might still be wondering, however, if FHA Loans are still affordable and if they’re a better option than conventional loans.

Higher Housing Prices

Housing prices across the US rose dramatically over the past decade. These inflated new prices mean that most American families cannot realize the dream of homeownership. The FHA has responded to the higher housing prices by raising the loan limits in most counties across the US. It is even possible to qualify for jumbo and super jumbo loans in certain parts of the country.

Increased Insurance

After the subprime mortgage disaster, lenders are less willing to issue loans without receiving either a large down payment or mortgage insurance. With the FHA, it is still possible to receive a loan with a small down payment and not have to pay private mortgage insurance (PMI) because the government insures the loan for you. This reduces the your risk as a borrower, and allows the lender to pass on some great benefits to you.

Foreclosures

Because of the housing market crash, many families are finding it hard to continue making payments on their house. People with conventional loans who have defaulted on payments are finding their houses in foreclosure. With an FHA Loan, it is possible to refinance the house, even if you have defaulted on the loan. Through programs like HOPE for Homeowners and the FHASecure, the government is helping out families who would otherwise lose their homes.

Affordability for the Future

The FHA has been making homeownership affordable since 1934 and continues to do so today. With a government guaranteed loan, you are sure to have help and support well into the future if you should ever run into any problems down the road.

Pre-approval

Before you start looking for houses or comparing loans, take a minute to fill out our secure online form. Pre-approval is 100% free and has no obligations.

FHA Refinance | fha home loans | fha mortgage refinance | fha loan rates