More mortgage shoppers seeking reliable home loan programs are opting for the FHA home loan program in greater numbers recently. In the early 1900s, the FHA was the choice only for those people who were not earning a lot, had credit issues, or were first time buyers with little down payment.

At the moment, there are approximately about 50 million qualified, likely FHA customers. This is irrefutable evidence that this home loan program is actually helpful to a extensive pool of American mortgage shoppers. In this article we will discuss the advantages of FHA home loan programs and why you might want to use one for your next home loan. Now let’s see what these advantages are:

Advantage 1:

This kind of loan program will give you the option to purchase a house with a very low down payment. FHA home buyers are only required to make a down payment of 3% of their new home’s purchase price….FHA lends the rest, including closing costs. It is a misconception one must be a “first time buyer” to apply for an FHA loan. That is simply not the case. Anyone can apply whether they are buying or refinancing their first, second or third home.

Advantage 2:

FHA does not allow “surprise” clauses to be included in their home loans like prepayment penalties, balloon payments, or interest only terms. Consumers can feel secure knowing that FHA programs are straight-forward, simple to understand loan programs.

Advantage 3:

FHA programs have a unique appraisal process which protects buyers from buying homes at inflated prices. This is a big advantage over other loan programs which have a lot of appraisal fraud and could be paying too much for the normal home buyer.

Advantage 4:

The biggest advantage, in a world without subprime loans, is that FHA will still underwrite and approved borrowers with bruises on their credit reports. Credit challenged borrowers can still purchase houses, but only if they use an FHA program.

Advantage 5:

Now that the foreclosure crisis has put a black mark on millions of home buyers, it is FHA to the rescue. Folks with foreclosures on their record must know that FHA programs are more forgiving than any other program. The waiting period after a foreclosure for most conventional programs is 5 years, whereas the FHA program offers home loans after only 3 years.

So now I expect it is apparent to you that there are lots of advantages to the FHA home loan program and one should consider this when planning to purchase a house or apply for a home loan.

Rob K. Blake, mortgage expert and author, educates mortgage shoppers on finding local providers by state like South Carolina Mortgage Brokers and Lenders and provides reviews of national companies like ABN AMRO Mortgage.

Article Source:http://www.articlesbase.com/mortgage-articles/why-you-should-select-the-fha-mortgage-program-1487284.html

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