Friday 12 January 2018

Home Ownership Is Possible With The FHA Financing California Lenders Offer

By Elizabeth Kelly


When you have a moderate income, you may think owning your own home is just a dream. Even if you have good credit, it may be difficult to save money for a down payment. If you have been house hunting, on the off chance you can get a home loan, and are a first time home buyer, your Realtor should be telling you about government backed loans. There is FHA financing California lenders can offer when applicants don't qualify for conventional loans.

The mortgage many purchasers prefer is the 203b loan. It is a ninety-six percent, fixed rate mortgage payable over a thirty year period. In order to protect the lender, you are required to purchase mortgage insurance that will be added into your monthly payments. Fixed rate means your payments will remain the same every month no matter whether interest rates go up or down.

If making the lowest payment possible when you first take out a loan is important to you, you might opt for an adjustable rate mortgage. You will get a low rate initially just because you are willing to take a chance on the interest rate. If interest goes down so will your payments, but if interest rates rise, your payments will too. They can't go up more than one percent per year and five percent over the lifetime of the loan.

The government offers homeowners the chance to refinance their home mortgages by qualifying for a secure refinance loan. This loans are directed toward homeowners with adjustable rate mortgages who are having trouble making their monthly payments. Even those without FHA loans may be able to qualify for refinancing. You do have to have reliable income and be able to make your payments.

Most people have seen the reverse mortgage commercials on television and online, but many don't really understand the process. This plan is geared toward seniors, sixty-two or older, who have equity in their homes. With a reverse mortgage, they can get a line of credit or cash against that equity. There is no repayment as long as the senior occupies the home.

In order to make energy efficiency more attractive to homeowners, the FHA offers special loans that allow new purchasers to increase the energy efficiency of the home they are buying without taking out an additional home loan. Individuals who already own their homes can get mortgages restructured to allow them to upgrade their homes and make them more energy efficient.

You don't have to purchase a single family home to qualify for a government backed loan. If you are interested in a condominium, there are FHA condominium loans you can apply for. These are very similar to the 203b loans for single family properties. There are restrictions however, and you need to discuss them with your Realtor.

For years the federal government has encouraged home ownership. In order to make it possible for low to moderate income families, it has established a number of loan opportunities. You just have to find the one that's right for you.




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