| > | | | | created in mass, providing safe and secure housing for |
| Imagine it is 1934. The United States is in the depth of | | | | Americans who might have gone homeless. FHA had |
| the Depression. Out of every ten households, only four | | | | come to the rescue again. |
| own their own homes.In 1934, the federal government | | | | In the 1970's, the American economy ran rampant with |
| created the most successful government program in | | | | out of control inflation. Energy costs threatened to |
| history, the Federal Housing Administration, also known | | | | undo our economy. |
| as FHA. The purpose still today - to revive the dream | | | | FHA appeared on the scene providing emergency |
| of homeownership. | | | | financing for apartment owners strapped for cash. |
| Contemplate 1934. | | | | FHA helped keep them above water lessening the |
| The United States is in the depth of the Depression. | | | | chance of greater financial disaster. |
| Only 40% of America is a homeowner. | | | | In the 1980's, private mortgage insurers were pulling out |
| The normal mortgage is limited to 50% of the home's | | | | of any states in America whose economies were |
| value. If you want to buy a home, that means you | | | | prominently connected to oil production. Recession |
| must come up with a 50% down payment. | | | | was reeking havoc but FHA moved to steady |
| The 30 year fixed rate mortgage, considered the | | | | decreasing home prices by insuring FHA mortgage |
| staple of mortgage financing today, doesn't exist. Most | | | | lenders against loss. |
| home mortgages have a payment term of three to | | | | The success of FHA home loans has made the |
| five years and end with a large balloon payment. | | | | United States the best housed country in the world. In |
| Buyers wanting to buy a home find it nearly impossible | | | | 2001, the homeownership rate soared to more than |
| to locate a bank that will finance them. | | | | 68%. |
| Unemployment becomes the norm. More than | | | | But here is the most amazing part of all. FHA is not |
| 2,000,000 construction workers alone are jobless. | | | | taxpayer funded. It is not subsidized by the Federal |
| The Federal Housing Administration with its FHA | | | | Government. It is totally and completely funded by |
| mortgage loans is conceived in this setting. | | | | insurance premiums collected directly from FHA |
| In 1934, the federal government created the most | | | | borrowers. |
| successful government program in history, the Federal | | | | Today, FHA is coming to the rescue again. We are all |
| Housing Administration, also known as FHA. The | | | | well aware that the housing market is in the dumps. |
| purpose - to revive the dream of homeownership. | | | | Selling a home is difficult. Refinancing is also difficult. |
| FHA has continued to the housing rescue many times | | | | Lenders have disappeared and money is tight. |
| throughout its history just as it did during the | | | | Recently the President signed into law the Hope For |
| Depression. | | | | Homeowners program. This program was created |
| After World War II, housing was in short demand. | | | | specifically for borrowers facing difficulty making |
| Veterans returning from the war wanted to settle | | | | mortgage payments. When Hope For Homeowners |
| down but there was a shortage of housing and | | | | begins in the last quarter of '08, homeowners can take |
| mortgage financing. | | | | advantage of FHA home loans to finance into secure |
| Again FHA came to the rescue. FHA home loans | | | | home loans. |
| made it possible for returning Veterans to get | | | | In addition, FHA has dramatically increased loan amount |
| mortgage financing for their families after the war. | | | | limits to help steady the housing and mortgage market. |
| During decades that followed, FHA ignited apartment | | | | Watch for more of my articles on FHA where I will |
| development for lower income, the elderly, and the | | | | highlight the benefits of FHA-insured refinancing and |
| physically challenged. Apartment dwellings were | | | | tips for qualifying to buy a house with FHA home loans. |