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Federal Housing Administration Home Loan is a facility offered mostly to first time home buyers as most first timers do not have enough cash to buy their own homes. This act like a boon to them; a major source of comfort for them to acquire their dream homes.
So many of these first time buyers can only manage a mortgage payment as most of them have poor credit score and so the FHA comes in here knowing how very important it is for people of their category to own their dream homes, also knowing on their own part that this is a very powerful investment.
The organization also works as the insurance provider to the borrower so that if the borrower is not able to pay back, the policy pays back the lender.
It is important to note here that this FHA programs do not make these loans. They only insure the loans making you pay as little as 3% interest rate so it is a more convenient way to own a home.
Some of the Requirements for getting the loan:
You must have good credit history, you must have home owners insurance and property taxes, you will pay attorney fees, insurance, mortgage and little search fees. The total deductions at every month end should not be more than 29% of your monthly income including installments, interest rates, insurance and property taxes. These should be representing not more than 2 to 3 percent of the total home loan.
If you are able to make these payments then you are rest assured that you are ready to apply for FHA home loans. So how do you get started?
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