What Is An FHA Loan?

An FHA Loan is a federal assistance mortgage loan that is insured by the Federal Housing Administration and issued by federally qualified lenders.

The program was developed during the Great Depression of the 1930s, during a high rise in the number of foreclosures and defaulting loans. The program was intended to provide lenders with sufficient insurance allowing them to lend back to the consumers. The FHA program requires borrowers to pay for Premium Mortgage Insurance (PMI) which ultimately self-sustains the FHA program itself.

Reasons To Use An FHA Insured Loan:

• You are a first time home buyer
• You do not have a lot of money to put as a down payment towards the purchase
• You want to get a very competitive interest rate
• You do not have perfect credit
• You need the seller's help for your closing cost

FHA Loans require the borrower to have 3.5% of their own money as a down payment for the purchase of the property, and allows the seller to give you up to 6% of the sales price towards the buyer's closing costs. Qualifying for FHA Loans does not require the borrower to have perfect credit; however, it does require the borrower to have at least 2 years at the same line of work and also 2 years of tax-returns. The borrower has to be employed and have an established bank account. If buying a condominium, the complex needs to be FHA approved.

FHA Loans have become tremendously popular financing options for first time home buyers. As a result, buyers are able to get low, fixed interest rates for 15 or 30 year terms. It is time to start buying with confidence. Come to our 2nd FREE Informative Home Buyer Seminar on Thursday, July 16, 2009. Registration begins at 6:00 p.m. Refreshments will be served. Seminar runs from 6:30 p.m. to 7:30 p.m. in Coconut Creek, Florida. Seminar is FREE but you must RVSP to attend. We had over 25 potential home buyers attend our first event! Spots fill up quickly, so please make sure to register by calling 954-609-0591 or Click Here To Register Online. Please also remember to register your neighbors, friends, and family.