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Further
Reading ...
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Increase Your Sales Accept Credit Cards, Part 2 - Sue and Chuck DeFiore
In part two we will discuss overcoming objections, which credit cards to accept and using the check paying option. If your business is home-based or has been in operation for less than two years, you’re likely to face objections from the bank. If...
Time is a Fleeting Thing - Kathleen J Wheelihan
Part 1 You’ve heard it before—time favors no one; time is one of the great equalizers; and all the other truisms that describe this fleeting commodity that we all share. The truth is that although we can’t control the passage of time, we can make...
Refinancing Second Mortgage - Lance Williams
Refinancing is the process of replacing an existing loan with another lower interest rate loan for the same amount. Rate of interest is the rate in percentage charged by the mortgage lender in calculating the outstanding principal balance....
Cash Flow Management - Dr Rachna D Jain
Cash. Most people want more. When running a small business it's particularly important to monitor how cash is coming in and how much cash is going out. This month, I'd like to take a few minutes to share some ideas on cash flow management as in...
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FHA Mortgage
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Written By:
Tony
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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 - continued below ...
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continued ...
than the prospective homeowner 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
Tony Forster has a keen interest in living debt free having been "up to his ears" before realizing the need to take control. He has compiled an online financial article resource at http://www.loan4payday.info
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What is a Guru? - Robert J Farey
A guru is a teacher. On the internet a guru is someone who has a lot of experience and has made the grade, ie. He/She has set up a business that is financially successful and is willing to share the experience with anyone who is interested. Are you...
Let Your People Shine - Etienne A Gibbs MSW
PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to...
Are You Ready To Start Your Own Business? - Cheryl Antier
Have you been thinking about starting a new business, or taking over an existing one? Are you wondering if you're ready to give up the security of having a "job" and a steady paycheck? Starting your own business, or buying an existing business can...
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