Popularity of FHA Loans is on the Rise

With the housing market as it is, American families are struggling to find decent, affordable loans from private lenders. Most loans that are available today require huge down payments, high interest rates and have tough standards for qualification. FHA loans, however, only require around 3.5% for a down payment and are much more lenient in regards to credit history. It’s no surprise then that FHA loans are becoming a much more popular and viable option for Americans.

Federally Insured Mortgages

The FHA is does not issue the money for loans; instead, it insures privately issued loans. What this means for you as a borrower is that you get to take advantage of huge benefits because you are such a secure and attractive borrower. Lenders who participate in the FHA loan program are willing to lower their qualification standards, give you a good interest rate and charge a small fee for the down payment. Plus, because you are already insured you won’t have to pay any additional private monthly mortgage insurance on the loan. All of these benefits add up to big savings for you as a borrower.

Increased Loan Limits

The FHA has increased its loan limits in most counties across the US in order to accommodate the inflated housing prices. While the loan limits vary depending on the county, type of mortgage and number of units, it is still possible to qualify for a large six-figure loan in most areas. Right now the standard limit for single-family homes is $217,050 while in high cost metros it is as high as $730,000. Be sure to check out the website for the Department of Housing and Urban Development (HUD) for more information on limits in your county.

Keep your Home

Another attractive feature of FHA loans are the programs available to help borrowers avoid foreclosure. If you should find yourself having difficulty making payments, you have the option of going through HOPE for Homeowners or FHASecure to refinance you loan. These programs will even help those who have already defaulted on the loan.

Getting Pre-approved

If you are one of the millions of Americans interested in taking advantage of the FHA home loan program, you can get started today with a fast pre-approval. Simply fill out our online form and we’ll have your free pre-approval within minutes.

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