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FHA Loans can help save your Home
Federal Housing Administration loans, commonly referred to as FHA loans, have the backing of the Housing and Urban Development which is actually a cabinet department of the executive branch. These loans have been in existence since 1934. When the real estate bubble burst, homeowners were looking for any solution to save their homes. This brought visibility to the FHA, which have relaxed loan requirements, modest down payment requirements, and competitive interest rates.
As property values dropped and interest rates adjusted, FHA mortgages gained popularity. Because FHA loans are less restrictive, more people qualified for these loans. Many homeowners switched to FHA loans and locked in their rates.
Until about 3 years ago, only 3% of the population had FHA loans. Today close to 50% of American homeowners have refinanced their homes and were able to stabilize their financial situation with the help of FHA loans.
Impact on the Economy
FHA loan programs have saved many homeowners from foreclosure during these tough economic times. The absence of these loans could have had a catastrophic impact on an already fragile economy.
Today, the real estate market is slowly improving, however many Americans are still feeling its devastating effects. With the help of FHA loans, we look to a future real estate market that will not only allow Americans to dream of one day owning a home, but one that will allow Americans to own a home they can truly afford.
