An FHA mortgage is a special home loan that is backed by FHA. This type of loan is designed for first time home buyers and low-income earners. This is because they have a lower down payment and credit requirements than traditional loans. However, this doesn’t mean that you must be a first time home buyer to qualify for this type of loan. The majority of top mortgage lending institutions are authorized to provide FHA loans. Phoenix, AZ information can be seen at this link.
How FHA Loan Works
The most important thing you need to know about FHA loans is that the FHA doesn’t lend you the cash. You receive the cash from an FHA approved lender such as Desert Springs Mortgage, LLC. The role of FHA is to ensure the mortgages, providing lenders security in case the borrower fails to repair the loan. This allows the FHA approved lenders to issue FHA loans with low-interest rates and lower standards for eligibility. When it comes to paying it back, you will be required to pay for the FHA insurance that safeguards the mortgage lender. This is known as a mortgage insurance premium or MIP. Discover facts about What are the Pros and Cons of FHA Loans.
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