Yes, you read it right. It is possible to get lower rates
and friendlier terms. You have been running from pillar to post to get that
loan which will enable you to buy your dream house. You have learned that buying
property comes with a lot of other costs which include appraisals, title
expenses, and credit reports, not just the price of a house. Just when you are
about to give up what seems an unequal struggle given the challenging economic
situation, you get information which seems like manna from heaven.
Safeguarding High Risk Loans
This news is about how you can apply for FHA
mortgage in Irvine or any other geographic area within
the United States of America. When you look for getting a loan from the Federal
Housing Administration (FHA), keep in mind that this is a branch of the
Department of Housing and Urban Development which has been working to insure
loans to homebuyers. The advantage of getting a loan from the FHA is that the
mortgage is covered by insurance which safeguards the lender’s capital and
enables you to negotiate for the house you have set your heart on. This in turn
allows you to make a smaller down payment than you would
have to make for a conventional loan.
How Does It Work?
The housing market is hit the hardest during any kind of
economic downturn or recession. The FHA was set up to stimulate the realty
industry and encourage buyers to invest in new homes. If the debtor falls
behind on the mortgage and the property has to go into foreclosure, then the
FHA pays off part of the mortgage through its mortgage insurance program.
Subsequently the property defaults to the FHA. Since the option for refinance
was added
to FHA mortgage in Los Angeles and other places, the FHA has
been able to bailout quite a few homes from foreclosure. It is the only
mortgage relief program that actually caters to people who already face
foreclosure.
The qualification process is based on certain key criteria such
as your monthly mortgage payment exceeding 31% of your gross monthly income and
a hardship letter which indicates it if your income has suddenly fallen or your
social responsibilities have increased your financial burden. The great news is
that while most lenders are tightening their purse strings and making it close
to impossible to get a loan, the FHA lenders are still trying to make it
reasonable for anyone to get one.