The FHA is not a lender. A common misconception is that FHA home loans are for first time homebuyers. FHA loans guidelines also provide attractive benefits to home buyers as qualification is usually less stringent than conventional loans. If refinancing a home, the current loan DOES NOT have to be an FHA loan. Refinancing an existing FHA home loan is actually called a streamline refinance. FHA loans are for all homeowners that are buying, or refinancing their home. FHA loans are for all homeowners that are buying, or refinancing their home. FHA home loans require a smaller down payment as well. Down payments for FHA home loans are low, generally 5% or even as low as 3.5%. The finance package in a nutshell is: FHA insurance + lender financing = FHA loan. FHA home loans are available in rural and urban areas. FHA home loans are not loans granted by the government, but FHA home loans are mortgage loans that are guaranteed by the Federal Government. FHA home loans are generally offered at reasonable interest rates, and guarantee the mortgage company that the loan will be paid.
The loans provided under the aegis of Federal Housing Administration (FHA) provide necessary insurance to the lending institute against non-payment or default committed by the individual undertaking the home loans. If you are looking for an FHA loan, you must approach FHA authorized lenders. There are experts available with all FHA approved lending institutes who specialize in giving you necessary advice and information about FHA Loans. Let us look at the important characteristics of FHA Loans.
FHA Loans would consider the administrative and processing charges of a home loan to calculate the amount of FHA loan that an individual would be eligible for. FHA Loans help you save on significant interest costs towards servicing of home loans since these are cheaper to conventional loans. FHA Loans are not only available for a home purchase but also towards renovation and home improvement. Read article about Bad Credit Lenders