Considering an FHA Loan? WE CAN HELP!
Considering an FHA mortgage loan? You have plenty of company. The Federal Housing Administration, also known as FHA, is the largest insurer of mortgage loans in the world.
So how does FHA work? And how does it help you buy a home or get a refinance mortgage?
FHA, which is part of the U.S. Department of Housing and Urban Development, also know as HUD, doesn’t actually provide home loans. It collects collects mortgage insurance premiums on loans made by mortgage lenders. The insurance premiums are paid by adding an Up Front Mortgage Insurance Premium to your loan and charging you and annual premium paid as part of your monthly payment. Since it was created in 1934, FHA has insured more than 47 million home loans. Mortgage insurance help protect Utah mortgage companies against losses in the event borrowers default on their loans.
FHA mortgage insurance makes it so mortgage brokers are able to offer loans that require less of a down payment. Easier qualifying criteria than they otherwise would be able to offer, often at better mortgage rates than conventional loans is another advantage of payment FHA insurance. The insurance helps offset the higher risk of default on loans with lower down payment requirements and are easier to qualifying for. This makes it easier to get a Utah refinance or to buy a new home and with less cash.
Once primarily a loan program for first-time homebuyers, FHA today helps all kinds of home buyers and their families afford a home of their own. If you would like to learn more about the FHA? The links to the right are articles aimed at helping you better understand FHA loans. And remember, it is always a good idea to get pre-approved from a Utah mortgage broker before shopping for your new home. Call us today to qualify for an FHA loan.
Easier to Qualify: Because these loans are insured by the government, mortgage lenders are more likely to offer you this type of loan program.
Low Down Payment: FHA loans only require a 3.5% down payment, this makes it easier to buy a new home. Additionally, the 3.5% can be given to you by a family member in the form of a gift, unlike many other loan programs that require you to have your own down payment.
Low Credit Score Requirements: Because FHA insured loans are backed by HUD and the US government, those with a less than perfect credit or lower credit scores have an easier time getting this kind of loan.
Better Utah Interest Rates: With the backing of the government, lower mortgage rates than most traditional Utah conventional mortgages are available, this will result in lower monthly payments.
Learn more about Utah FHA mortgages on our blog.