Dropping a lump sum of cash to buy a house might be doable for lottery winners and Oprah, but the rest of us will need a loan to purchase a great home. The Federal Housing Administration has been a key part of home ownership since 1934, providing mortgage insurance on loans made by FHA-approved lenders.
FHA directly benefits lenders with mortgage insurance, which provides protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner’s default, meaning it’s easier for you and me to get a home loan thanks to FHA.
In the past couple of years, FHA has gained immense importance and has played an increasingly larger role in the housing market by helping fight the effects of the recent deterioration in the credit markets, the mortgage meltdown, and the overall economic recession.
Now is as good a time as ever to get a loan for your future home. With FHA backing, lenders are becoming more and more ready to orchestrate a mortgage for you. New West Realty offers some wonderful home owning options at Eastgate Village. Click here to make an appointment or to request more information toward owning a new home, and be sure to ask about Eastgate Village’s available FHA financing.
Click here for more information on FHA from the U.S. Department of Housing and Urban Development.