Going for a mortgage loan, do not forget to do a brainstorming session. Mortgage loan can be short term or long term. Its interest rate may be fixed or variable or a combination of both. Loans may be offered under schemes. These schemes may be offered by bank or Federal Housing Administration or some agency backed securities. Most probably you will find this entire process mind boggling and preferred way will be to take help of some agency. Professionals from the agency will help you in
• Creating a financial plan for your house payment
• Find out your credit score
• Reviewing your outstanding debts
Based upon your credit history and requirements, professional will find a solution for you. Do not forget to check the FHA option. FHA insured loans are good for first time buyers and have many plus points over conventional mortgage loans.
The FHA or Federal Housing Administration came into existence in 1934. Whole objective of this administrative unit was to help families of lower income and middle income segment of the society. So that their dream of having a small place called sweet home is realized. Job of the agency is twofold on the one hand it provides protection to borrowers from devilish mortgage lenders, on the other hand it takes care of mortgage lenders from defaulters.
Agency acts like an insurance agency and is not a provider of lending services. Agency insures the loans that borrower can obtain from lender. The lender has to be one from the list of approved lenders by the agency.
When you borrow a loan that is insured by FHA, you have many advantages
• Lenders will be comfortable in reducing mortgage rates of these loans.
• Small down payment
• Small origination fees
• zero penalties for prepayment
• mortgage insurance
• Financial assistance at the time of closing.
Down payment on this type of loans is normally 3 percent and these loans are available as fixed rate or adjustable rate mortgage loans.
How do you qualify for FHA insured loans, check you eligibility yourself or take some professional help. Some of the criteria that will make you eligible for such loans are
• Credit history of the prospective borrower should be good.
• Borrower should have a source of stable income.
Under certain schemes, you may be eligible for FHA insured mortgaged loans even if you have poor credit rating. Take professional help to find out in detail to know better Fha mortgage rates.
Under certain conditions, FHA may offer mortgage loans under some rehabilitation projects. To find out more about these schemes visit their website or take professional help.
In this age of internet, do not forget to cross check your quotes from different service providers in the field of mortgage and loans. Post your queries online and satisfy your doubts before taking the final decision.
