Home Loans - FHA
In 1937, under
an act of Congress, the Federal Housing Administration was established
to provide American families with a unique opportunity to become home
owners. Formerly, a home buyer's options were only limited to short
term loans ranging from 1 to 5 years in term. Borrowers had to put
as much as 40 to 50 percent down on the property and pay off the entire
loan balance by the end of the term. FHA revolutionized the mortgage
industry at the time by offering the 30 year mortgage and made the
possibility of home ownership available to Americans nationwide. Throughout
the years, a variety of programs have spawned from this revolution
to make home ownership easier, more affordable, and attainable to
- FHA program
opens up opportunities that conventional mortgages do not offer:
Debt Ratios to 29%/41%
credit history is considered
- All of the
down payment may be gifted
- Seller may
contribute up to 6% toward the closing costs.
cosigners are allowed.
- 401-k loans
are not counted in the debt ratios.