FHA Loans
The Federal Housing Administration (FHA) was established in 1934
to improve housing standards and to provide an adequate home
financing system through insurance of mortgages. Households with
poor credit that would otherwise be excluded from the housing
market were finally able to buy the home of their dreams with an
FHA Mortgage.
Today, FHA is particularly important to minority and first-time
homebuyers. With the National Homeownership Strategy in place
since 1995, FHA has placed a great deal of emphasis on marketing
and outreach to minorities and first-time homebuyers.
How do I qualify for an FHA Loan?To obtain an FHA loan you
must be able to meet the following criteria:
- You must have a credit background that shows you meet
your obligations.
- You must have enough income to pay your monthly debt.
- You must have enough cash to make a down payment at the
time of closing.
- You must be able to pay the closing costs, which
normally total 2-3% of the price of the home.
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