Let’s talk about FHA loans. Any personal experience?

[Kerry100]

share it, please.

i only know that FHA loans are granted by an organization, called Federal Housing Administration, and have a particular type of financial insurance, which helps lenders to protect their money and make risks lower.

[Bambale]

Hi

Kerry100

Recently I’ve read an article and found interesting statistics. According to the statistics, more than 30% of people nowadays use credit possibilities to maintain their personal budget consistently and have an opportunity to purchase large vehicles, expensive apartments or houses.

So, you should know that there are strict requirements for banks, which are going to provide FHA loans to the borrowers. First of all, FHA is not considered to be a lender, but rather an individual organization, which is aimed to control all financial operations of FHA loans and credits. When you need to get this particular type of loan for the personal purposes, you should make shopping around to make a list of approved organizations.

[John]

There are mortgage brokers, which are considered being the effective organization to take an FHA loan as well. In most of the cases, they participate as a middle financial authority between lenders – commercial organizations – and money borrowers, which are usually individuals. Be sure that you understood all requirements of the particular type of loan as well as analyzed its affordability for your personal budget and budget forecast. Try to reach US Bank – there is an online calculator with all the details you need. So basically you can count your own mortgage and then make a decision.

You can read some history of FHA here: https://www.hud.gov/program_offices/housing/fhahistory – you will understand how it is working nowadays and what organizations are responsible for it.

[Kerry100]

Wow! Thanks John for a great advice about calculator. Went to calculate my finance =)
Ok, what about the insurance? Do I need it?

[Georgie]

not every loan or credit has requirements to conduct a financial insurance. This particular type of loan is going together with the premium insurance, which helps lenders to low the risks. According to the data and information collected from the local commercial banks and other financial organizations, an average amount of premium insurance is around 2.3 percent of the quantity of money you need to borrow.

If we are talking about the annual insurance, it is about 0.5 percent. According to the requirements of every FHA loan, insurance should be regularly paid during every month of your mortgage. If to compare the insurance requirements of different loans and mortgages, FHA loan and its interest rates as well as insurance amounts are considered being the most affordable choice for most of the individuals.

[Kerry100]

Thanks, Georgie. Good to know it as well. As far as I can see, leading US banks give this information together with FHA loans.

[Georgie]

I read a lot about FHA loans several months ago. There are basically 2 myths (maybe you’ve heard about it also). If not – it will be good for you to know.

Myth 1 – Your down payment is high

It is false. In most of the cases, your down payment for the FHA loan will not be higher than 3 percent annually. As long as your credit score is considered being high enough (from 550 and more), you have a chance to take a reasonable offer for the down payment for your loan.

Myth 2 – I cannot get a loan after bankruptcy

When you have a bankruptcy of your business, it does not mean you won’t be able to take an FHA loan. Moreover, if you declared your FHA loan two years ago, and now your are working on the re-establishing of your credit score and history of credits, you have huge chances to apply for the FHA loan as soon as possible. If you maintained your regular payments for the loans in the past and completed your deals successfully, you can apply for FHA and consider reasonable conditions and terms of payments for the low-interest rate and convenient down payment.

[Kerry100]

Awesome! You’re my personal kind of consultant =)

[Author]

Posts