What you should know before applying for FHA loans?

Many home buyers apply for FHA loans in San Jose.  It is a type of government-insured mortgage and is one of the best choices available today for homebuyers seeking a low down payment combined with comparatively easy prerequisite standards. The full form of FHA is Federal Housing Administration and it is part of the U.S. Department of Housing.  The FHA does not actually make the loan. The loan is actually granted by an approved FHA lender keeping FHA lending guidelines.

 Why are FHA loans popular in San Jose mortgage market?  These loans are crafted to help home buyers buy their first dream home. Also, the experienced buyers benefit from this loan type as it provides a low down payment option.  The money lenders also get benefitted as they provide protection for lenders in the event of a homebuyer defaulting on the home loan. If you opt for this type of loan, you will enjoy down payments as low as 3.5%. The loan is guaranteed by the government and you can apply for it even if you have less than perfect credit.

It is important to note here that FHA loans not only benefit home buyers, they are beneficial for the economy as a whole. It was created in 1934 to address complexities in the mortgage industry including unpredictable mortgage loan terms, low rate of home ownership and widespread unemployment.

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Created on Dec 27th 2017 01:58. Viewed 439 times.

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