Having one’s own house is no more a dream! FHA grants housing loans on easy terms, only the following facts have to be taken into the account.
In the FHA Mortgage loans, it is not mandatory for the lender to have a perfect credit, like other loans. Any person with a least of a credit score can get a loan sanctioned as this is a government insured loan (HLT, 2012).
The FHA home loans is an easy way to make your dream come true as it does not burden you with a high level down payment, only a 3.5%is more than okay (HLT, 2012).
FHA is a very efficient way to protect the lenders from losses against defaulters. Since it is a government insured policy, the FHA mortgages benefit the lenders as much as it benefits the borrowers (Jenkins, n.d).
The debt-to-income ratio of the FHA Mortgage loans is a maximum of 43% for which the borrower’s credit score must be below 620 (Pagli, 2013).
The popularity of the FHA Mortgage loans has increased especially in the Westchester County, NY because the requirements of the other loans have been raised by the lenders. (Pagli, 2013).
The clients of FHA are fortunate to contribute towards its closing costs. Generally, it is 3% of the purchasing price but can be extremely helpful to manage minute expenses (HLT, 2012).
Despite being flexible and friendly, the FHA loans have some strict clauses as of having a considerable amount of cash balance at closing time (Wickell, n.d).
To secure the interests of the lenders and avoid the defaulters, FHA makes sure that the borrower is having sound finances to pay the monthly debt (Wickell, n.d).
There is a defined fee approved for the FHA loans and if the lender has an origination fee that is higher than the approved fee, it is alarming!! One has to beware of the frauds (Jenkins, n.d).