FHA loan programs were started during the great depression period to help each and every person to own a home of their own no matter what their income or credit was. These loans are still extremely popular for the unsurpassed flexibility that they provide you with. It becomes so burden free and easier to purchase a home when you get an FHA loan sanctioned. Let us briefly examine the advantages of FHA loans over all other kinds of bank and financial loans that numerous companies offer you with.
FHA loans have the most minimal down payment which accounts to less than even three percent of the selling price with hundred percent financing options that are offered to you. You do not have to have any reserves to get this loan sanctioned. Even a self employed person can avail such a loan.
An FHA loan permits the seller to pay up to six percent of the closing cost and prepaid items. Another great advantage of such loans is that even a person who has faced bankruptcy or has lots of other mortgages will be sanctioned such a loan. Another great benefit if these loans are that they are totally assumable implying that when you want to finally sell your home, you can even offer the buyer FHA financing.
The main aim of FHA home loan program is to increase the community of home buyers. Their interest rates are so cheap and competitive that you can be assured that you will secure the best loan deal when you get a loan from FHA. This loan program even permits you carry past due payments and transfer them to the end of the loan and in specific instances will even waver your past due payments for you. Hence they take every measure possible to ensure that you can save your home and make it your own.
FHA does not actually provide loans directly to people who need to buy a house, they actually insure loans that that are provided by Florida mortgage companies. The FHA insurance guarantees security against mortgage defaults that can happen. You can purchase single family homes, duplexes, tri-plex, four-plex, condos, town house, mobile homes and even modular homes by availing a FHA loan.
Hence you will discover that an FHA loan is any day better than any other home loan that you may get sanctioned. Even though there are umpteen banks and non- banking financial institutions competing with each other to offer you the most attractive and low rate of interest home loans, there is absolutely no doubt that an FHA loan will surpass all other loans in all ways. So if by any chance you are planning to avail of a home loan, do not think twice, make sure that you go for a FHA loan today itself.