FHA – The Best Mortgage Out There Right Now

If you have purchased a home in the past 12 months and the value was $300,000 or less, it is a good bet that you received an FHA loan to obtain the house. Mortgages insured by the Federal Housing Administration(FHA) can be the best option for today’s homeowner. These loans have minimal down-payment requirements, easier credit score qualifications and excellent rates.

The terms are so attractive that even if you qualify for a conventional loan you may still want to do an FHA loan instead!

And a lot more of people do. Since the housing market began to fall apart in 2006, FHA lending has increased 700%. In 2006 FHA accounted for only 3% of the total dollar volume of all loans, now that figure is up to 20%.

The number of approved FHA lenders has increased 500% over the past two years. These lenders know that to stay in business during this market they will need to be competitive with FHA loans.

"FHA stays active in volatile and declining markets, continuing to make mortgage credit available to borrowers, even when private mortgage providers are withdrawing," said the Secretary of Housing and Urban Development, Shaun Donovan, in Senate Appropriations Committee testimony this past Thursday. "During difficult times, it is critically important to have an entity like FHA play this role - offering families access to near-prime rate financing."

One of the primary benefits to using an FHA loan to purchase a home is the down payment required. You only have to put down 3.5% of the homes value. With most conventional loans you will need to put down 10%. In some cased you will even need to put 20% down.

Check out HUD website at http://www.hud.gov/ to get more info regarding FHA programs.

Check out http://www.thebriteway.com/ for all of your mortgage needs.

Have a great Thursday!