FHA Loans (Federal Housing Administration) are government-backed loans that allow the borrower to have a minimum amount of money to put down on a home. Some people believe that FHA is only for first time homebuyers, or for people who have had credit problems in the past. Actually, FHA is a great loan for everyone. Even if you've owned a home previously, and have perfect credit, FHA may still be the best loan for you. There are several advantages to an FHA loan. There is a low minimum down payment of 3.5%. The seller can contribute up to 6% of the purchase price toward the buyer's closing costs and prepaid expenses, which can significantly reduce your out of pocket expense.
Since 1930's, FHA loan programs were here, to fulfill the dream for some low-to-moderate income families to own a house of their own. Today, FHA loan programs have gained its popularity to a wider range of audiences, primarily because of its competitive rates and flexible credit requirements with averagely low down payment requirements which can be as low as 3.5%.
The FHA insures home loan mortgages. They are actually not lending any money to the borrowers. They solely provide the mortgage insurance to protect lenders against the risk of default on mortgages, thus making these loans more secured. A mortgage lender who works with the FHA possess a higher chance to approve your home loan application because they know that with the FHA protection, if the borrower default, FHA will cover the loss necessarily.
With this FHA insured loans, many potential home buyers are able to take advantage of the flexible credit terms which can be ranging from 5 years to 30 years.
The FHA guidelines for loan qualification are the most flexible of all mortgage loans.What are the basic requirements to get a FHA House loan?
- Earn a consistent income from a reliable source with a steady employment record for the last 2 years
- Free from Bankruptcy for at least the last 24 months
- Proven records of timely payment made on their previous debts for the last 12 - 24 months
- Proven records of income tax payment for the last 2 years
FHA loan is most suitable for these groups of people:
- One which have faced certain credit problem, and found it impossible to get any conventional loans to become a home-owner
- Fresh college graduate who has just started to work and don't have much down payment
- One who request for a more flexible credit terms such as those for 10, 20 or even 30 years of loan terms are available. Find More FHA Home Loan Requirements Issues
Municipal building codes have adopted energy-efficiency standards for all new construction, but it is up to the homeowners to select the windows or window treatments to get the best return on energy efficiency. Window coverings provide a good balance between heat loss and heat gain in a home. People select window coverings based on type, cost, comfort, style, privacy, and convenience. However, insulating ability is not usually one of the considerations, but with the cost of oil and gas on the rise, perhaps consumers should be made aware of this insulating ability.
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