A FHA mortgage allows some borrowers to qualify for the lower interest rates of a conventional loan, rather than using a higher rate sub-prime mortgage. This can save thousands in interest charges.

The FHA or Federal Housing Administration is now a part of HUD or House and Urban Development, which are responsible for making home ownership more accessible for more Americans. What is great about the FHA, is that you do not have to have perfect credit or a high paying job. The payments are usually smaller than bank made loans, as well as the down payment needed towards a home is also much smaller than what would normally be accepted.

Qualifying for a FHA loan is surprisingly very easy! You must be able to meet the minimal credit requirements, plan to use the home as a primary residence, and of course can afford to make the monthly mortgage payments, which are often comparable to rent payments. You must be able to show a steady income for three years and have paid your bills on time. There is no limit on the amount of income that is needed to qualify.

 The Fha Loan(HARP) has been designed to complement Making Home Affordable by helping homeowners who have not been delinquent on their monthly mortgage payments, but are still unable to refinance and take advantage of the historically low mortgage rates due to the declining home values, thus raising their current loan-to-value (LTV) over 80%.

FHA helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

The FHA also limits fees that can be charged to the borrower. For example, the loan origination fee cannot surpass 1% of the mortgage amount. FHA loans are a very attractive mortgage option. Unlike a private mortgage, FHA loans are designed to cut you a major break so you can buy a home.

President Obama's $75 Billion Making Home Affordable housing stimulus program will assist as many as 9 million homeowners by either making their monthly mortgage payments more affordable, or by stemming foreclosure

Fha Loan loans will allow the flexibility necessary to make the refinance process quicker and more cost-effective for both the borrower and the lender. All HARP loans require less documentation for underwriting, and some HARP loans will not require an appraisal.

 

Mortgage rates hit record low for third week in a row Mortgage rates hit record low for third week in a row As kids' co-signer, why can't I refinance? Dear Dr. Don, I want to refinance my home. I currently have a 5.5 percent mortgage and can get a new mortgage loan at 4 percent. I owe $173,000, and my house should appraise at $300,000, even in this down market. I purchased the home for $325,000. Foreclosed Americans find way back to homeownership - Chicago Tribune msnbc.com Foreclosed Americans find way back to homeownership Chicago Tribune The number of FHA-insured home loans has soared in recent years as subprime loans have disappeared and fewer Americans have qualified for conventional mortgages backed by Fannie Mae and Freddie Mac, which were rescued in 2008 by the US government after ... Is the Government Backing a New Housing Bubble?The Fiscal Times Commercial & Apartment Loan Originator Commercial Loan Direct Announces New ...Virtual-Strategy Magazine U.S. Loan Educators Assists Thousands of Individuals Experiencing Budgetary ...PR Newswire (press release) all 39 news articles »

Loan Facts - Promissory Estoppel - A doctrine applied when someone makes a technically unenforceable promise, but another person acts in reasonable reliance on the promise. If the person who relied on the promise will suffer harm unless it is enforced, a court may enforce it. Also called Doctrine of Dertimental Reliance. -