| Picture 1934 in your mind. | | | | out of control inflation. Energy costs threatened to |
| America is swallowed up in The Great Depression. | | | | undo our economy. |
| Only 40% of America is a homeowner. | | | | FHA appeared on the scene providing emergency |
| The normal mortgage is limited to 50% of the home's | | | | financing for apartment owners strapped for cash. |
| value. If you want to buy a home, that means you | | | | FHA helped keep them above water lessening the |
| must come up with a 50% down payment. | | | | chance of greater financial disaster. |
| The 30 year fixed rate mortgage, considered the | | | | In the 1980's, private mortgage insurers were pulling out |
| staple of mortgage financing today, doesn't exist. | | | | of any states in America whose economies were |
| Home loans are fixed rates for only a few years, | | | | prominently connected to oil production. Recession |
| ending in risky unmanageable balloon payments. | | | | was reeking havoc but FHA moved to steady |
| Buyers wanting to buy a home find it nearly impossible | | | | decreasing home prices by insuring FHA mortgage |
| to locate a bank that will finance them. | | | | lenders against loss. |
| Unemployment becomes the norm. More than | | | | The success of FHA home loans has made the |
| 2,000,000 construction workers alone are jobless. | | | | United States the best housed country in the world. By |
| In such an environment, FHA and FHA home loans are | | | | 2001, 68% households purchased their homes. |
| born. | | | | But here is the most amazing part of all. FHA is not |
| In 1934, the federal government created the most | | | | taxpayer funded. It is not subsidized by the Federal |
| successful government program in history, the Federal | | | | Government. It is totally and completely funded by |
| Housing Administration, also known as FHA. The | | | | insurance premiums collected directly from FHA |
| purpose - to revive the dream of homeownership. | | | | borrowers. |
| FHA has continued to the housing rescue many times | | | | Today, FHA is coming to the rescue again. We are all |
| throughout its history just as it did during the | | | | well aware that the housing market is in the dumps. |
| Depression. | | | | Selling a home is difficult. Refinancing is also difficult. |
| After World War II, housing was in short demand. | | | | Lenders have disappeared and money is tight. |
| Veterans returning from the war wanted to settle | | | | Recently the President signed into law the Hope For |
| down but there was a shortage of housing and | | | | Homeowners program. This program was created |
| mortgage financing. | | | | specifically for borrowers facing difficulty making |
| Again FHA came to the rescue. FHA home loans | | | | mortgage payments. The program goes into effect |
| made it possible for returning Veterans to get | | | | October 2008 and borrowers will be able to refinance |
| mortgage financing for their families after the war. | | | | with FHA-insured mortgages that are affordable. |
| In future eras, low to moderate income workers, senior | | | | More over, the Federal Housing Administration has |
| citizens and the physically challenged benefited from | | | | greatly expanded loan limits to aid in stabilizing the |
| FHA's energy. Millions of apartment properties were | | | | housing and home loan industry. |
| built to help provide homes for people with difficult | | | | Watch for more of my articles on FHA where I will |
| circumstances. FHA had come to the rescue again. | | | | highlight the benefits of FHA-insured refinancing and |
| In the 1970's, the American economy ran rampant with | | | | tips for qualifying to buy a house with FHA home loans. |