Federal Housing Administration Loans
In 1965, the Department of Housing and Urban Development introduced the Federal Housing Administration (FHA). The goal of the FHA is to assist prospective homebuyers in getting low-rate home loans. Now, Americans in cities across the country, including Tampa, Flordia rely on the FHA to help them secure an affordable mortgage.
Small Down Payment Available
When Tampa, Flordia homebuyers apply for a mortgage, Tampa mortgage lenders generally require a 20 percent down payment. Many applicants, however, cannot afford such a large up-front expense. If this is the case, the FHA steps in to insure the mortgage. The Federal Housing Administration does not fund loans or guarantee them, they simply insure them. This home loan insurance removes the risk that Tampa lenders encounter when approving a loan that has a down payment smaller than 20 percent.
In layman's terms, FHA loans offer low down payment amounts and low closing costs. The FHA loan down payment can be as little as 3.5%, and even come from a family member, your employer, or a charity.
Less Than Perfect Credit is OK
FHA loans also offer simple credit qualifying, as opposed to the more strict eligibility requirements required by conventional Tampa loans. If you have a blemished credit history, you may still qualify an FHA loan. Even if you have declared bankruptcy or foreclosed on a previous home in the past, you may still be able to obtain an FHA loan. What's more, if you encounter difficult financial times after you purchase your home, the Federal Housing Administration has many options to help you stay in your home and evade foreclosure.
FHA Loans Offer Competitive Rates
Another popular feature of FHA loans is that they offer reduced monthly mortgage payments and outstanding loan terms to Tampa homebuyers. FHA loans have low interest rates because they are insured by the government. And since these loans are government-insured, Tampa mortgage lenders often give excellent loan terms that make qualifying that much simpler.
Though FHA loans do not have income limit qualifications, they are usually offered to first-time Tampa homebuyers or those with moderate monthly cash flow.
Popular FHA Loans
Popular Federal Housing Administration loans include fixed-rate loans, adjustable-rate loans, and reverse mortgages. Most FHA-insured mortgages are fixed-rate, meaning that your interest rate and monthly payment amount stay the same during the entire loan period. An adjustable-rate loan has a reduced initial interest rate that could rise or fall over the life of the loan. A Federal Housing Administration reverse mortgage lets Tampa homeowners over the age of 61 convert home equity into accessible money.
Publish Date: 2009-11-14 14:37:17
Tampa Florida Mortgage Articles
Tampa Mortgage Articles
A Closer Look at Tampa, Flordia Home Equity Loans
Do you currently own a Tampa, Flordia home, but you need a little extr.. read more
Date: 2009-11-14 14:45:15
The Do's and Don'ts of Purchasing a Tampa, Flordia Short Sale
Given the current real estate market, it’s a great time to purchase a short sale. With many .. read more
Date: 2009-11-14 14:40:00
Federal Housing Administration Loans
In 1965, the Department of Housing and Urban Development introduced the Federal Housing Administration (FHA). The goal of the FHA is to assist pros.. read more
Date: 2009-11-14 14:37:17
The Many Reasons to Buy Your First Home, Right Now
Considering buying your first Tampa, Flordia home? Act now and take adv.. read more
Date: 2009-11-14 14:25:39
