Like Free Money? Take Advantage of the FHA for your Next Home Purchase!

Today, we have the pleasure of hearing from Greg Shuey, a loan originator from Utah, on the topic of the FHA. Since he’s walked clients through FHA-type loans before, he’s in a great position to offer his expertise for us today. Let’s take a look at what he has to say.

FHA Loans Make Buying a Home Easy During Hard Times

The Federal Housing Administration or FHA is a federal agency established as part of the National Housing Act of 1934. Its goal is to improve the housing standards and conditions of every Americans. FHA provides a sufficient home financing system. The agency does this by insuring mortgage loans to help stabilize the mortgage market.

In short, the FHA is your key to homeownership. You can get different types of mortgage loans offered by the Federal Housing Administration. They are the following:

• Fixed-Rate mortgages
• Adjustable-Rate mortgages
• Energy Efficient mortgages
• Graduated Payment mortgages
• Growing Equity mortgages

Last year, the Housing and Economic Recovery Act of 2008 signed by President Bush made some changes to FHA loan limits to help more homebuyers qualify. For example, FHA loan limits on single-family home mortgages will be raised to $271,050 in low-cost areas and $625,500 in high-cost areas. The previous FHA loan limit was $362,790.

The new limits, according to the Housing and Urban Development secretary, is targeted at assisting neophyte homebuyers and those struggling with money to refinance to government-backed loans such as FHA loans. One of the most beneficial things FHA does is that it allows you to refinance or buy a home with a low down payment. This spells great for first-time homebuyers and those who dont have much money for initial payment. Other than that, FHA-insured loans have more benefits than the conventional loan. They have lower down payment, which is at 3 percent. In addition, it can come anybody”family members or organizations as a gift.

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Greg Shuey originates loans for Utah Financial, a mortgage company in utah. Together with Chase Gunderson, we specialize in FHA home loans and Utah FHA Streamline loans. We are here to educate and help you along the way when researching streamline refinance in utah.

Thanks for sharing those excellent insights, Greg! I know our readers have picked up some valuable tips!

If you’re a reader and considering making a move in the mortgage industry, talk to our experts first. We’ll get you pointed in the right direction after a no cost consultation.