5 Reasons To Consider An FHA Mortgage [mortgagegoal.blogspot.com]
In today's show we visit with Garry Seidel, manager over at Fulton Mortgage Company to talk about what's hot and what's not in the mortgage market as summer 2011 winds down... With the upcoming changes to FHA loans, the maximum loan limit is returning to pre-2008 levels. Rural Housing Service (RHS) home loans will be adding mortgage insurance payments to the principal and interest. Both of these changes are scheduled to go into effect October 1, 2011. I asked Garry to talk about Rural Housing (RHS) loans - how they stacked up as a good option for your typical homebuyer. Garry likes them alot, and feels that with all the changes to FHA loan rules the RHS loans continue to be a better choice, given the two main guidelines: Maximum family income limits and geographic location limits. Lastly, Garry brought up the subject of Lancaster PA mortgage rates and rates in general - he commented that although Bernanke and the Fede ral Reserve have promised to keep rates down for 2 years, that applies to home equity loans and NOT mortgage rates - an important distinction. Mortgages in Lancaster County and beyond will continue to be driven by market forces and have been fairly volatile recently. Both Garry and I strongly recommend that if you're interested in buying a home you should get prequalified FIRST and have the conversation with Garry about which loan product and terms will work best for your situation. You can reach Garry at (717) 336-8054 or gseidel at fultonmortgagecompany dot ...
mortgagegoal.blogspot.com Ep. 94 Garry Seidel - FHA Mortgage Changes, All About Rural Housing Loans
Since the early 1930s, the Federal Housing Administration has been providing federally-insured home financing to qualified borrowers. With its lower up-front costs, accommodating terms and forgiving credit requirements, the FHA loan is a popular choice for first time and low income buyers; however, you don't necessarily have to have low income or poor credit to be approved. Review the following five reasons to consider an FHA loan to see if this home mortgage program might be right for you.
1. Less Money Up-Front
FHA financing was first introduced in the midst of the Great Depression, as a way to make it easier for people to buy homes and stimulate the economy. One of the major ways in which it did this was by requiring less of a down payment when compared to a conventional loan.
2. Less Money Over Time
Another characteristic of an FHA loan is lower interest rates. While interest rates fluctuate, FHA mortgage rates will typically be lower-than-average.
3. Less Stringent Credit Requirement
Borrowers with less than perfect credit scores may qualify for an FHA loan. Like other loans, the FHA program still has a minimum credit score that is required for applicants. However, when compared to many conventional loans, the credit score requirement tends to be lower.
4.
Flexibility and OptionsThere are special types of FHA mortgages that can be very accommodating to the borrower's specific needs. For instance, a 203K loan is a special FHA loan that can allow the cost of repairing a fixer-upper to be financed into the mortgage. The Federal Housing Administration also provides Reverse Mortgages, where senior homeowners can borrow from their equity to pay living expenses, and an Energy Efficient Mortgage (EEM), which, as the name implies, allows the borrower to finance the costs of making a home more energy efficient. There are even FHA programs that offer funds for refinancing and debt consolidation.
5. Higher-Value Homes Can Qualify
Many people associate FHA loans with less expensive or starter homes, but the truth is, even more expensive homes can qualify for FHA financing. FHA mortgages have a maximum loan amount that is based on the median real estate prices by county, which allows some homes in more expensive areas to qualify. If home prices in your county are higher than the national average, the maximum FHA loan amount will be higher, too.
To learn more about FHA mortgages, contact an FHA-approved lender. Be sure to ask about current FHA mortgage rates and the loan limits in your area.
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