After the real estate crisis a few years ago, banks became far more cautious about how they loaned out their money. Unfortunately, this has led to a situation where there are legitimate and responsible borrowers who struggle to persuade any bank to agree to provide the money that they need to buy their own home. If you’re struggling to find an affordable mortgage with reasonable terms, you should explore the possibility of getting an FHA Home Loan. It may just be exactly what you need.
An FHA loan is one that’s insured by the Federal Housing Administration. This means that there’s additional protection for mortgage companies against the possibility of losing money if a family is unable to keep up with their loan payments. Because of that decreased level of risk, banks are typically more willing to lend with this loans and also offer more attractive rates and terms. Essentially, interest charges represent what the bank wants in return for taking a risk on not getting their money back. When that risk decreases, the interest they charge does as well.
You do still have to meet certain requirements to be able to borrow through this program. For example, an FHA Home Loan is only available to people who will be living in the residence as their primary home. It can’t be used to purchase an investment property or a vacation home. You also have to be current on any federal debt that you may have, such as student loans. Borrowers also need to be able to show that they have a good history of being employed, though time in school or a military service record can be used to meet the two-year requirement.
Before you sign up for a loan, even if you can qualify for one through another program, you should contact Village Mortgage and find out whether this might be an option for you. It’s likely to have a lower interest rate, lower down payment requirement, and other favorable features over typical loans. Since the government has build this program to try to make home ownership available and affordable to every citizen, it would be a shame to miss out on an opportunity to get a great rate.
©2014 Village Mortgage Company, NMLS #6331 , CT #6331, RI #6331, Mortgage licensed lender in MA ML6331. This is not an offer to extend credit to any individual who may be entitled to a more complete disclosure per RESPA, TILA, HOEPA or any other more applicable federal, state or local law or regulation. Rates, terms, fees, products, programs and equity requirements are subject to change without notice. Village Mortgage, Equal Housing Lender.
