If you’re looking into applying for an FHA mortgage loan, there are some things you really should know first. This article explains the pros and cons to FHA mortgage loans and expels some of the common myths involved.

For low-income and bad credit borrowers, the FHA’s mortgage loan program can sound like a dream come true. Many borrowers have heard that the FHA won’t look at your credit, needs less money down, and approves applicants that other banks won’t. What are the facts and what are the myths? Read on to find out.

Fact or Myth #1 – The Government Loans Money

The first common myth of FHA loans is that the US government’s Federal Assistance Mortgage (FHA) program actually loans out money. This isn’t the case.

An FHA loan is simply a bank/credit union loan that is backed by a guarantee from the government. If you fail to pay the mortgage, the government guarantees that they will repay the bank instead.

Because of this guarantee, the bank’s lending requirements are much looser, because they’re taking less risk.

Fact or Myth #2 – Your Credit Doesn’t Matter

This is a half myth, half truth. While the FHA won’t base your loan on your FICO score, your credit history is still important.

What the FHA is looking for is a solid history of at least 12 months, where the borrower has made all his payments on time. Instead of looking at just your credit report, the FHA may also look at your phone bills, rent history, utilities, among other bills to demonstrate your credit worthiness.

You also get the chance to demonstrate why you may have a bad credit score. For example, if you have an outstanding history of making on-time payments up until a medical emergency, and since then still managed to pay your consumer debts, you may still qualify for an FHA loan.

Fact or Myth #3 – An FHA Loan is a Better Deal

While it’s true that an FHA loan entails less risk for banking institutions and therefore they can charge less, an FHA loan may not always be a better deal.

The FHA is designed to be a self-sustaining institution, and therefore has to make money as well, in the form of insurance paid to the FHA.

For low income or bad credit borrowers, FHA backed loans are almost always the better deal. For medium income or average credit, research and comparison is necessary to be sure whether FHA is for you or not.

To learn much more about FHA Home Mortgage Loans or to see about getting a Home Mortgage Loan Quote, visit us at http://www.gethomemortgageloan.com/

By Josh Spaulding Published: 11/6/2007

Bidding Wars for First Time Home Buyers | First Time Buyers Tips

Steve Howe is a First Time Home Buyer Specialist working with the Minnesota Real Estate Team. If you have questions about owning your first home, or would like to get more information about the process, fill out the contact form.

FHA Loan Limits for 2009 | FHA Mortgage 

Mpls/St. Paul, MN 2009 FHA Loan Limits The 2009 FHA Loan Limits in Minnesota have taken effect. 

FHA loans allow for non occupying Co-borrowers In Minnesota 

FHA loans allow for non occupying Co-borrowers In Minnesota. By mnmediamogul. http://www.ventureloanapp.com FHA loans are unique in that they allow for a co-borrower who is not an owner occupant to qualify for a loan with the owner.

FHA Loans in Minnesota

Why would someone prefer a FHA loan or Conventional loan I was asked by a client this week. Great question, since FHA loans had virtually disappeared as an option for Minnesota first time home buyers until a year ago.

Best bet for a home loan now

Until this year, FHA loans were capped so low that the program was out of step with the real price of a house. But in February 2008, the ceiling in the highest priced markets went from $362790 to $729750. That amount is scheduled [...]

Default rate rising among FHA-backed loans – TwinCities

Several experts who track the agency attribute the rise in defaults to a batch of bad loans made in 2007, when the subprime market was faltering and borrowers with spotty credit were shoehorned into FHA loans instead. Of the 1.78 million FHA loans made in the past two years, more than 1 million were originated in 2008, agency data shows. 

Real Estate – FHA 203K Full Rehab Loan-Minnesota Mortgage 

We have sourced and found an investor who will fund an FHA FULL rehab loan. This loan is a little more complex than the 203K streamline or "lite" product that is limited to 35K. 

Facts to Know About FHA Mortgage Rescue Plan

Imagine, it is 1934. The United States is in the depth of the Depression. Only 40% of American households are homeowners. The federal government creates the most successful government program in history, the Federal Housing Administration. FHA’s purpose today, as it was in 1934, is to revive the dream of home ownership.

Envision 1934.

America is swallowed up in The Great Depression. Out of every ten households, only four own their own homes.

The normal mortgage is limited to 50% of the home’s value. If you want to buy a home, that means you must come up with a 50% down payment.

The 30 year fixed rate mortgage, considered the staple of mortgage financing today, doesn’t exist. Most home mortgages have a payment term of three to five years and end with a large balloon payment.

Banks are scarce that will help homeowners searching for mortgages.

Unemployment becomes the norm. More than 2,000,000 construction workers alone are jobless.

In such an environment, FHA and FHA home loans are born.

In 1934, the federal government created the most successful government program in history, the Federal Housing Administration, also known as FHA. The purpose – to revive the dream of homeownership.

FHA has continued to the housing rescue many times throughout its history just as it did during the Depression.

After World War II, housing was in short demand. Veterans returning from the war wanted to settle down but there was a shortage of housing and mortgage financing.

Again FHA came to the rescue. FHA home loans made it possible for returning Veterans to get mortgage financing for their families after the war.

During decades that followed, FHA ignited apartment development for lower income, the elderly, and the physically challenged. Millions of apartment properties were built to help provide homes for people with difficult circumstances. FHA had come to the rescue again.

In the 1970′s, the American economy ran rampant with out of control inflation. Energy costs threatened to undo our economy.

FHA appeared on the scene providing emergency financing for apartment owners strapped for cash. FHA helped keep them above water lessening the chance of greater financial disaster.

In the 1980′s, private mortgage insurers were pulling out of any states in America whose economies were prominently connected to oil production. Recession was reeking havoc but FHA moved to steady decreasing home prices by insuring FHA mortgage lenders against loss.

The success of FHA home loans has made the United States the best housed country in the world. By 2001, 68% households purchased their homes.

But here is the most amazing part of all. FHA is not taxpayer funded. It is not subsidized by the Federal Government. It is totally and completely funded by insurance premiums collected directly from FHA borrowers.

Today, FHA is coming to the rescue again. We are all well aware that the housing market is in the dumps. Selling a home is difficult. Refinancing is also difficult. Lenders have disappeared and money is tight.

President George W. Bush has enacted Hope For Homeowners in recent days. This program was created specifically for borrowers facing difficulty making mortgage payments. The program goes into effect October 2008 and borrowers will be able to refinance with FHA-insured mortgages that are affordable.

In addition, FHA has dramatically increased FHA loan limits to help steady the housing and mortgage market.

In future articles regarding FHA home loans, discover key benefits to FHA mortgage financing as well as essential elements to qualifying for FHA home loans.

By Kate Ford Published: 8/29/2008

No Hope for Homeowners at CW till April 2009 – Loan Modification
I actually work for Countrywide and happened to stumble upon this site a while back by "Googling" my own name. lol Anyway, I did just want to confirm that unfortunately Countrywide will not be participating in the Hope for Homeowners program.

FHA Loans, FHA Mortgage, Home Refinance
Hope for Homeowners was a program passed over the summer as part of the FHA mortgage reform package. In a recent report, FHA loan pros said that as of “October 1st and HUD has allegedly allotted 22 people to the program.

Hope For Homeowners – The FHA Short Refinance
Hope For Homeowners – The FHA Short Refinance The FHA Short Refinance may be right for you.

Foreclosure assistance thanks to the Hope for Homeowners plan
To get this type of foreclosure assistance through the H4H act, you have to contact your lender or another FHA approved lender to find out if they are participating in the Hope for Homeowners program.