San Diego, CA (PRWEB) December 11, 2013
LoanLove.com is a borrower advice website that is NOT another boring, stuffy, “fall asleep in your chair” site about loans. As a trusted destination for current news and expert loan advice, the website empowers home owners with first class knowledge, valuable resources and connections to top rated industry professionals. With highly valuable, informative and entertaining articles the Loan Love teams aim is to help borrowers find loans that they will love. Recently the website has published a number of loan guides that outline the basics of some of the most popular loan types. One of these is an FHA loan guide which can be very helpful for any borrowers who are considering utilizing these types of loans.
The Loan Love article says, So, you say you want to buy a home but you can only afford a small down payment? If you have good credit (not necessarily perfect), an FHA mortgage could be your ticket to home ownership. An FHA mortgage is a mortgage thats been guaranteed (i.e., insured) by the Federal Housing Administration. The actual loan is made by a bank or other traditional mortgage lender, but FHA underwriting means the lender wont be left on the hook if the borrower defaults. Its easy to see, then, why FHA loans are popular with lenders theres a lot less risk. But why are they popular with homeowners?
Loan Love goes on to explain that some of the main FHA loan benefits include:
Low down payment, as noted in the previous quote.
The fact that some FHA loans are assumable, which could make it easier for the buyer if they plan to sell their home down the road.
FHA 203K loans are useful for borrowers who plan to make improvements on the home they are buying, as they allow buyers to take out a single loan to fund both the purchase and home improvements.
These can be some very attractive advantages for first time-home buyers and those with lower incomes, most notably. However, there are some disadvantages to FHA loans, as there are with any type of loan. Loan Love lists the main ones:
FHA Loan Guide Now Available At LoanLove.com is a post from: Best Home Mortgage