Get a FHA Loan and Get Your Dream Home

The federal loan of the government was intended to give citizens the finances they need to get a house despite their low salary and bad credit. Banks would often deny these people‘s request for loan due to the fact that they are unsure if they would be able to pay back loans.

FHA mortgages are one of the government’s ways of helping these potential clients to get loans in financing their everyday necessities. But since the United States had suffered from a recession in 2008, the project was greatly affected and not all of potential clients were able to qualify for the program.

So how does one know if he or she is an eligible candidate for the FHA loan? Well first, let us review why the program was initiated. The Federal Housing Administration is a project headed by the United States Department of Housing and Urban Development. In 1934, the program was initiated to prevent home lenders from being broken due to a home renter’s inability to pay rents on time.

This program allows the government to intervene in the customer lender mortgages if the client goes default in his or her payment. The program has been effective in its function and it now has about 34 million mortgages that it has settled over the 78 years of its existence.

But this started to get harder when 2008 came. The FHA loan was harder to qualify for since the agency had to be stricter to their customers. But now since the economic crisis is finally starting to lift off again, the FHA is starting to approve mortgages again but not all banks are willing to go with the approval even if the individual fulfills the minimum requirement of the agency.

But what are the guidelines that must be comply by the applicants? First, the credit score of the applicant must be at least 580, those who have scores in between 500 and 579 the agency will give a mortgage of 90 percent or lesser of the total price of the house.

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Filed under: home equity loan • home loan • house loans for people with bad credit • Loans • mortgage • mortgage loans • mortgage loans for people with bad credit

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