The Federal Housing Administration (FHA) is a United States government agency as part of the
National Housing Act of 1934.
The goals were:
National Housing Act of 1934.
The goals were:
- To improve the housing standards& provide home financing through insurance of mortgage loans
- Stabilize the mortgage market.
4 out of 10 of the American population were renters
The new practices allowed a number of people who could afford the down payment and monthly payments.
The new practices allowed a number of people who could afford the down payment and monthly payments.
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| When the FHA was first introduced to Americans, the industry was "flat on it's back". Over 2 million construction workers were without jobs. The terms for those who were seeking a mortgage were difficult to meet. |
1940's: The FHA helped finance military housing and homes for the veterans returning from the war.
1950's & 1960's: helped spark production of million of privately owned apartments for elderly and handicapped,as well as lower income Americans.
1970's: Thousands of apartment building were struggling to survive, the FHA's emergency financing kept troubled properties a float.
1980's: Home prices were on a steady decrease & the possibilities for potential home buyers to get financing they needed during the recession.
2001: Nations home ownership rate has soared to an all time high of 68.1%
The FHA insures the loan so the lender will offer a better deal!
The government insures FHA Loans, making the home the collateral and giving lenders protection against default.
Who is eligible?- First-time Home-buyers
- Low Income Households
- Low Credit Scores
- Poor Credit History
- Bankruptcy
- $0 Out of pocket cash
The Advantages to FHA?
- Smaller down payment (3%)
- Lower Costs & closing cost can be included in mortgage
- Easier to qualify
- Flexible Credit Guidelines
- No income requirements
Tip for First Time Home Buyers- By making your FHA Loan payments on time, you are building your credit and equity, you'll have the option to refinance into a conventional loan, with even better rates and NO MORTGAGE INSURANCE.
"Take the first step to home ownership and contact me for more information about
FHA Loans!
