Foreclosure Isn’t The End of the World: Not With New FHA Mortgages!
Federal Reserve Chairman Ben Bernanke recently noted the government’s
concern that many people are unable to enter the mortgage market because of
lenders’ tight restrictions, with no relief in sight in the near future. So the
FHA is coming to the rescue with a new program that’s assisting a growing
number of Americans to purchase homes—even after bankruptcy or even a
foreclosure.
The FHA (Federal Housing Agency) was created in part for just this. The
Great Depression of the 1930s was not entirely unlike the recession that began
in 2008, and the FHA’s number-one priority then, as now, was to get more Americans into homes of their own.
| FHA home loans |
In the past, foreclosures spelled disaster for most homeowners.
Qualifying for a mortgage after a foreclosure was a matter of years—and a whole
lot of them. Now, however, more and more people are finding that FHA-insured
loans come with requirements that they can actually meet.
Let’s look at the numbers:
·
A conventional mortgage loan requires a credit
score of at least 720, proof of income, and a substantial down payment.
·
A FHA mortgage loan requires a credit score of 580,
proof of income, and only a 3.5% down payment.
In addition, the FHA lender will look at why the prior foreclosure
happened. Priority is given to individuals or families who experienced
foreclosure and bankruptcy because of the loss of a job.
“This isn’t an insignificant problem,” says mortgage expert Joseph
Avrus. “It’s really clear that people got behind on their mortgages, not
because they didn’t want to pay, but
because circumstances forced them into foreclosure.” According to the
RealtyTrac data company, there have been approximately 4.2 million foreclosures
in the U.S. since 2007; by 2014 that number is expected to reach six million. “It’s
affecting everybody,” says Avrus.
FHA-backed mortgages aren’t an easy answer to an easy problem. While the
time between foreclosure and mortgage approval is short—a mere two years in
some cases—they aren’t for everybody. They come with higher interest rates than
conventional mortgages, and do require that borrowers work to rebuild credit
before applying.
When possible, FHA-insured mortgages can be combined with Veteran’s
Administration mortgage loans for the best possible rebound from bankruptcy and
foreclosure.
Want to learn more? Avrus Financial and Mortgage can help you find the
right FHA-backed mortgage for your needs. Ask us how!
Labels: fha home loan lenders, FHA home loans, FHA loan, government mortgage refinance programs, how to get a fha home loan, mortgage refinance rates, what is a fha home loan
posted by Avrus Mortgage @ Wednesday, May 23, 2012
2 Comments
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2 Comments:
Thank you so much for spending more time and effort to shared this very nice info with us.
Hey there! This is my first comment here so I just wanted to give a quick shout out and tell you I truly enjoy reading through your blog posts. Can you suggest any other blogs/websites/forums that go over the same topics? Thanks a ton!
Regards,
Dee
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