| Finding the home that you want to purchase can be a | | | | opportunities throughout the United States and the |
| challenge. However, after you have finally found the | | | | Administration often offer incentives for lenders in |
| area where you want to live, you will need to work | | | | areas that are declining to motivate lending and sales |
| closely with your Real Estate Agent or Broker to | | | | of homes. The broker you work with will assure that all |
| follow through with other important aspects of your | | | | of the requirements for processing the loan, including |
| purchase. The effort that your Agent or Broker put in | | | | the requirements for the seller, are met in order to |
| to finding the home in the best location for you | | | | maintain the positive momentum of your loan process. |
| continues on into assuring that you get the most | | | | In most cases, home buyers do not meet |
| equitable mortgage loan available. In most cases, they | | | | representatives of the FHA when they are purchasing |
| will discuss with you many types of loans, however, | | | | their home. The processing is done through the |
| the benefits of utilizing a FHA Lender to secure a | | | | designated FHA lender and your broker acts as the |
| Federal Housing Administration loan will usually make | | | | liaison or intermediary if there are any questions or |
| this loan your best selection. | | | | issues. Another benefit of the FHA system is that you |
| Among the many benefits of an FHA loan is the fact | | | | are provided with methods to calculate the actual |
| that it normally can be processed more smoothly and | | | | monthly costs of your mortgage, including regular fees |
| quickly than other types of loans. The FHA provides | | | | such as insurance, taxes, and any homeowner costs |
| lenders with strict codes of conduct regarding the | | | | that need to be included in the calculation. Therefore, |
| qualification requirements of borrowers and the | | | | you are given a clear idea of what your expected |
| documents and forms that are required to use FHA in | | | | monthly payment will be. |
| a loan process are clearly spelled out for both | | | | With an FHA loan, the home inspection that is required |
| borrowers and sellers of properly. | | | | will play a pivotal role in the overall long term. The |
| In order to qualify for an FHA mortgage, the borrower | | | | inspection will cover every aspect of the home inside |
| must meet employment, salary, savings, and credit | | | | and out and is much more detailed than a conventional |
| requirements. The loan will usually have a lower down | | | | loan. This is a huge benefit for a new home buyer who |
| payment than a conventional loan and, in many cases, | | | | may not be aware of all of the problems that can |
| the closing costs and fees for the property will be | | | | occur when one purchases a home without getting a |
| carried by the seller. The points used to calculate fees | | | | proper inspection completed. |
| are normally less with FHA lenders than with | | | | The inspection report is normally very long and |
| conventional and standard lenders as well. The FHA | | | | contains information that includes both the outside |
| currently carries more than 5 million mortgages in their | | | | structural and interior soundness of the home. The |
| portfolio. | | | | report will discuss wiring, electrical systems, plumbing, |
| The consistency of the FHA mortgage program has | | | | and any repairs that are required to bring the structure, |
| helped to increase community development | | | | wiring, etc., up to standards required for purchase. |