FHA First Time Homebuyers Loans
Government Home Purchase Opportunities

If you are a first time home buyer, the time has never been better to explore financing through the FHA loan program. With subprime loans taking a hit in the market, many first time buyers are left with questions about the best options for them. FHA loans may in fact be the answer. While FHA mortgages haven't been as popular in recent years because of the perceived amount of bureaucracy associated with obtaining a loan backed by a government entity such as the HUD, new legislation is in the works to help make them more consumer-friendly.

Our lending services will coordinate first time home buyers with FHA loan specialist in your specific region. They will help explain the different benefits and costs associated with purchasing your first home with an FHA loan. Many potential homeowners assume they would not qualify to purchase a new home. The FHA home loan was created to help people just like this get approved for their first home loan.

Nationwide Mortgage Loans can help with FHA home loans designed to help first time homebuyer's finance their first home. Consumers like FHA mortgage loans because they require very little money down. The other reason FHA home loans are more popular than ever because homeowners with bad credit can qualify for a loan with a competitive interest rate. The 1st time homebuyer program is an excellent way for new homeowners to buy a home and keep their new monthly housing payment affordable.

FHA home loans are like financing angels for 1st time homebuyers!

If the FHA Mortgage Moderization Act actually goes into effect, FHA would be allowed to extend mortgages up to 100% of appraised home value. And the down payment requirement would drop from 3% to 1.5%. As of 2008, most FHA home mortgages would be locked into a fixed interest rate near at about 6% with no pre-payment penalties. When comparing these low-cost fixed rate FHAloans to the adjustable mortgages many of these subprime borrowers are stuck in, you see a stark differences. The FHA is creating an unusual payment shock that is positive, because applicants are surprised at the low interest rates for a change. With the new provisions, the FHA loan process would be streamlined and automated in most cases. The legislation's sponsors note that from 1996 to 2005, the subprime market went up 13 % to exactly match the decline in FHA mortgages during that real estate boom.

100% mortgages have been criticized as stretching borrowers' limits. But the lending sponsors argue that FHA has a superior track record because the underwriting guidelines have a different philosophy that requires more accountability for brokers and mortgage lenders. Most subprime mortgages that fell into payment deafult were "stated income" loans, but FHA home loans require more income documentation. The history of FHA loans also highlights a significatly lower rate of foreclosure.

There's also an experimental option for credit granted on the basis of unreported payment histories, for people who have limited or no credit history. Rep. Castle made a recent statement that "while expanding FHA loans likely won't help homeowners already facing foreclosure, they would open the housing market to poorer people who still aspire to buy." He continued that many homeowners are slipping behind on their home loan would be able to now qualify for a home refinance loan sponsored by the government."