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Further
Reading ...
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The 9-to-5 Home Business Tug of War - Elena Fawkner
The 9-to-5 Home Business Tug of War © 2002 Elena Fawkner Perhaps the scarcest commodity the new home-business owner just starting out has is time. This is particularly so if you are also working a traditional, full-time job and building up...
Creating Your Internet Marketing Plan - Megan Corwin
For large corporations, a marketing plan is a huge document detailing strategies for the fiscal year. It may include competitor analysis or a sales forecast. While these elements are important to a large business, do you as a small business...
7 Reasons to Pay Yourself First - Diann Cannon
Last month I was referred to a young fellow who wants to open his own business. He was pleasant, energetic, knew his stuff too; all good qualities to have, especially if you're self-employed. We started out well enough. We talked about his...
Communicate and Prosper - Helen Wilkie
How much has poor communication cost your company in the past twelve months? Chances are, you have no idea. Chances are even better it's a lot more than you can afford. But you won’t find the numbers in the financial statements or year-end...
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Become a homeowner with a FHA mortgage
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Written By:
Tony Forster
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Many people dream of owning their own homes but only very few are able to pay cash for them. This is why FHA mortgages are one of the popular methods to find a source for consumer credit. People who could not otherwise afford to own a house become homeowners with the help of FHA mortgage insurance programs.
FHA is the Federal Housing Administration. As part of the U.S. Department of Housing and Urban Development (HUD), one of the chief purposes of the FHA is to help people obtain financing for their homes.
How FHA Mortgage Insurance Works
As stated earlier, FHA mortgage is a way for homebuyers to obtain financing for their homes. All home purchases require buyers to make a certain set percentage of the total purchase price, called the down payment. What the FHA mortgage insurance does therefore is to allow a homebuyer to make a modest down payment and obtain a mortgage for the balance of the purchase price.
The mortgage loan itself is made by a bank, a savings and loan association, a mortgage company, a credit union, or any other lender. For it to become an FHA mortgage loan, the lender would have to be approved by the Federal Housing Administration. FHA (HUD0 insures then insures the loan and pays the lender if the borrower defaults on the mortgage. The protection offered by FHA mortgages to lenders allows them to be more liberal with their terms than the prospective homeowner - continued below ...
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might otherwise obtain.
Who can get an FHA Mortgage?
The good thing about FHA mortgages is that almost anyone can get it. So if you have a satisfactory credit record, enough cash to close the loan and sufficient steady income to make monthly mortgage payments without difficulty, then you'll have no trouble getting approved for an FHA mortgage. As a rule of thumb, only people who will reside in the property are eligible for FHA-insured mortgages.
There is no upper age limit set by HUD for the borrower. Nor is there a certain income level that the borrower must achieve in order to buy a home at a certain price. And although income is certainly an important factor, it is simply one of the several determining factors which are used by the HUD to find whether the borrower will be able to repay the mortgage.
Types of FHA Mortgages
There are several types of mortgages that FHA insures. These include:
- One-family residence
- Two-, three-, four-unit properties
- Condominium units
- Houses needing rehabilitation
About the Author
Tony Forster has a keen interest in living debt free having been "up to his ears" before I realized the need to take control. I am compiling a useful online resource at http://www.loan4payday.info enabling anyone to find the perfect money managment for them.
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| _Additional Resources ... |
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Show me the Money!! - Skip Shuda
Show me the money!!! Are you ready to raise money for your startup? Leslie Mitts, Managing Practice Leader at the Wharton SBDC and Lead Advisor for the Wharton Venture Initiation Program, tells us that most ...
Business Financing - Where to get it and why you would want a SBA Loan and Seller Financing - Jim Brown
Business Financing - Where to get it and why you would want a SBA Loan and Seller Financing Business financing can come in the form of conventional loans, SBA (Small Business Administration) loans, and seller financing. A combination of the three...
When the Chips are Down, Encouragement Goes a Long Way - Denise Hall
Have you ever been so discouraged that you were ready to give up? Do your dreams of a profitable home business seem very far away at times? I think we all go through it. We work into the wee hours of the morning, day after day, night after...
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