By Sharon Bartlett
Which mortgage is right for you? Part III
FHA Loan: 2021 complete guide
In this article, we look into FHA loans. • What is an FHA Loan? • What is the requirement of the FHA Loans? • What are FHA Loan rates? • How does an FHA Loan work? • What is FHA Mortgage Insurance? • What are some benefits of an FHA Loan? Let’s get started. WWW.THEPOWERISNOW.COM
FHA
loans are mortgages insured by the Federal Housing Administration. The insurance part protects the lenders which allow them to extend loan offers low-interest rates with eased requirements and a low downpayment (typically starting at 3.5%). The FHA was introduced in 1934 and plays a critical role in helping to finance for the first time homebuyers, minority buyers, and/or buyers that have a poor credit history. Additionally, FHA loans can cater to people with moderate incomes or people who cannot afford a 20% down payment. WHAT ARE THE STATISTICS ABOUT FHA LOANS? In 2012, almost half of first-time home buyers got financed through FHA loans and first-time buyers made up about three-quarters of FHA home purchasers that year.
123rf.com
Part one and part two of this series were mostly introductory, introducing you to ‘which mortgage is right for you’ and part three of this series is where we now start getting serious, diving deeper into mortgages.
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