FHA Mortgages to Save America's Homeowners
by
Minh Nguyen |
|
| Minh Nguyen helped established
FHA Mortgage Direct,
1-800-723-1880, a branch of Excel Funding, to start the FHA mortgage process
online. Minh has been a licensed loan officer and mortgage broker since 2000 and
specializes in FHA mortgage programs. |
FHA mortgage programs are giving American
homeowners an opportunity to refinance to low, 30-year fixed-rate mortgages
amidst heavy guideline restrictions and worldwide credit tightening. The truth
is, FHA programs have been in existence since 1934, but profit-hungry mortgage
companies preferred placing customers into higher margin, conventional
mortgages.
On average, homeowners can expect a 30-year,
fixed-rate mortgage at 6.25% and 15 yr. fixed-rate mortgages at 5.75% with FHA
mortgage products.
Borrowers with the following list of challenges
are currently being helped with FHA mortgages:
- Low credit scores
- Little or no equity in the property
- In foreclosure
- Late payments after an ARM mortgage went
adjustable
- High monthly adjustable-rate mortgage
payments
- Meeting Debt-to-income ratio requirements
Background on FHA
When the FHA was created, the housing industry was flat on its back after two
million construction workers lost their jobs and borrowers could not qualify for
reasonable mortgages--a very similar situation America faces today.
Congress created the Federal Housing
Administration (FHA) in 1934. The FHA became a part of the Department of Housing
and Urban Development's (HUD) Office of Housing in 1965.
The FHA does not actually provide the funds for
mortgages. It insures the mortgages that lenders make to help them against
potential losses. The cost of that insurance is passed on to the homeowners in
the form of mortgage insurance that is generally 1.5% of the loan amount upfront
at closing (can be wrapped into new loan on refinance) and 0.5% paid monthly if
LTV is greater than 78% LTV. At the end of 5 years or when loan-to-value drops
below 78%, the homeowner does not have to pay mortgage insurance.
FHA is the only government agency that operates
entirely from its self-generated income without utilizing taxpayers money. FHA
provides a huge economic stimulation to the country in the form of home and
community development, which trickles down to local communities in the form of
jobs, building suppliers, tax bases, schools, and other forms of revenue.
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