What Is An FHA Loan
Navigating a home purchase can be tricky, one of the most intimidating parts of that purchase is of course financing. A very popular loan in today's economy would be the FHA insured loan because of it's qualifying standards, and lender's being versed in qualifying individuals. FHA standing for Federal Housing Administration is a federally insured loan, guaranteeing banks would get paid whether or not the loan has defaulted. This gives the bank confidence in being able to recover their investment and therefore gives them the ability to lower their standards just a bit. After all, the purpose of FHA was too help more families get into homes by making the loans secure to the lenders. Because of this, you must live in your FHA funded home as a homestead for many years, making this type of lending a no go for investors. Well, I hope these help. I make my blogs short and sweet to make them easily searchable, so that you're not having to read a novel to get that little gold nugget you were looking for. So if there is something you need a little clarity on, search my site and it may pop up. Or leave a comment below and I'll get to that subject the following week. Thank you for reading.