FHA Loans |
FHA Loans The subprime mortgage crisis continues to send shockwaves through Wall Street, as well as foreign markets abroad. Investors and other stakeholders are begging the new Fed chairman, Ben S. Bernanke, to cut interest rates to stave off the downturn. If a bail out comes, the influx of cash will help right the ship for billionaire hedge fund managers and millionaire traders, as the New York Times put it. Who's going to bail out the average American, crushed by the weight of the subprime spiral? Right now, several states are considering programs that would free up tax dollars to help homeowners and slow the rate of foreclosure. But many homeowners can actively take some measures against the subrprime crisis, instead of passively waiting for the sky to fall. Increasingly, observers and industry figures are pointing to the Federal Housing Administration as a possible salve for the ongoing crisis. The FHA's government-backed loans and refinance programs may offer many homeowners the most affordable and safest means of beating back the subprime fallout and avoiding foreclosure. In fact, a recent story by CNN Money highlighted the FHA as a possible alternative for subprime borrowers, noting that the agency is in currently petitioning Congress for modernization measures that include: Eliminating a 3 percent down requirement, which would enable more low income borrowers to qualify; increasing the maximum loan to reflect the increase in home prices brought by the housing boom; assigning rates by risk to enable borrowers with higher credit scores to receive lower interest rates. Low-interest FHA mortgages can be approved with low down payments, and the loans also come with credit counseling. The first step a prospective home buyer hoping for an FHA home mortgage should take is to contact several lenders," the article notes. "It's important to comparison shop because the lenders offer different terms and rates, just as in conventional loans. We couldn't agree more. So, please take the time to learn about the FHA and its programs. The experts at Mortgage Loan Place are just a phone call or email away and are happy to answer all of your questions and concerns.
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