Understanding more about FHA Mortgage Loans

Buying a new home represents a significant investment. As a new homeowner, you have to make mortgage installment payments for a number of years post the purchase. It’s why you would have to consider the installment amount, the rate of interest as well as other similar factors very carefully. Most potential homeowners look for low interest rates and low installments, and we at United American Mortgage Corporation believe that FHA house loans become an excellent option for many buyers.

What are FHA Home Loans?

One of the most important factors that have bearing on the interest and mortgage rates, is risk. Financial institutions will set far higher installment rates and charge higher interest rates if they feel they are taking on a greater risk by lending you the money. Most of the home loan rates are based on calculations related to risk, competition and market conditions. The rates can be reduced if you are able to alter at least one of these factors. This is exactly what FHA mortgage loans do.

The Federal Housing Administration loans are insured and this reduces the risk for the lender. And so, in case there is a default, the insurance covers the remaining loan amount and a lender doesn’t lose any money in the deal. This eases the application as well as approval process and you are more likely to get the approved for this type of mortgage when you apply for FHA home loans.

FHA home loan facts

These loans are very attractive because borrowers as well as lenders are benefited in a number of ways. A government agency provides the insurance and so you don’t have to worry about its trustworthiness.
With these loans:

• You pay lower interest rates

• There is more flexibility in the qualification requirements.

• No requirement to pay any monthly premium amount for the mortgage premium.

• It  minimizes foreclosure risk, in case you face financial difficulties and default on paying back the loan.

• You can get a mortgage only if your credit core is over 500.

• Generally the down-payment amount is set 3.5% -10%.

• If the credit score is above 580, you might be asked to pay around 3.5%.

• If your credit score is above 500 and below 579, you may have to pay about 10%.

If you want to know more about FHA mortgage loans or find the best mortgage deal for your requirements, don’t hesitate to contact us at United American Mortgage Corporation.

Address:
3198 - F Airport loop Dr.
Costa Mesa, CA 92626
(714) 420-1997

vlong@uamco.com

Office
(949) 250-1300
Cell
(714) 420-1997
Fax
(949) 250-1959