1st Time Home Buying with FHA Mortgage Financing

The Federal Housing Administration has been insuring home loans for 1st time homebuyers since 1934.  The government created the FHA loan programs to promote homeownership and to ensure fair lending for all Americans.

Chip Cumming Talks FHA & 1st Time Home Buying

FHA mortgage interest rates are fixed and there is never a pre-payment penalty with a FHA home loan.  Buying a home can be a costly experience, so first time home-buyers have the ability to preserve capital with FHA loans because borrowers can finance up to 96.5% loan to value. That means that a new home buyer can get into a home with only a $3,500 down-payment.

There is a lot to consider with FHA mortgage financing, but an experienced FHA lender or licensed loan officer should be able to shed some light on the pros and cons of a FHA mortgage. The $8000 first time home-buyer tax credit expired April 30th, but the record low rates should be enough of an incentive to become a homeowner. Read the original FHA mortgage advice article online  > FHA Home Loan Options for 1st Time Homebuyers.

FHA Offers Mortgage Relief Solutions

FHA borrowers have refinance options that enable struggling homeowners to avoid going the loan modification route.  There is nothing wrong with getting a loan modification, but you can expect the process can take 6-12 months and you risk you losing your home in the process.  Just last week, the New York the state attorney general, Andrew Cuomo, has sent cease and desist letters to more than 200 loan modification companies.  The FHA loan Pros published an article that discussed how FHA customers could get relief without getting tangled up with mortgage relief companies.  They pointed out that laws for mortgage relief companies vary by state but Cuomo reached out to homeowners with FHA mortgage relief  insured by HUD.

The NY attorney general’s office said “Mortgage relief companies target homeowners facing foreclosure by promising to restructure their home loans with an affordable loan modification. Cuomo accused these mortgage relief companies of operating in deceptive practices that lure distressed homeowners to pay them for mortgage relief services, yet they often fall short to modify the mortgage.

The FHA Mortgage Solution

First of all FHA has been helping struggling homeowners since 1934. With their flexible FHA guidelines, HUD has been a leader in the foreclosure prevention arena. FHA has solidified a good reputation for rectifying FHA loans in default.  In 2009 the FHA annual report says that “82.7% of the FHA mortgage loans that were 90 days or more delinquent were brought under control.”

To get FHA mortgage relief, you need to contact a HUD foreclosure avoidance counselor at http://www.hud.gov/offices/hsg/sfh/hcc/fc/. There is no fee for their mortgage relief services so you have nothing to lose.  FHA refinance guidelines remain more flexible than conventional loan programs.   For borrowers who don’t have much home equity, they may still qualify for a rate and term FHA refinance at 96.5%.