Fha Loans – Help At Hand

By Author: Issac Gates
Total Articles: 186
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FHA is the acronym for Federal Housing Administration. It was brought in to being during the crises that hit the US market in the year 1929. Many common people could not repay their loans on their property and turned to banks to rescue them but banks did not have the necessary assets to get all the people out of distress. Seeing this overwhelming economic situation, the US government, in the year 1934, decided to amend the banking laws and started FHA, an agency to keep a control over the interest rates of mortgage loans as well as the terms and conditions of such loans.

Only authorized FHA lenders are the only ones who are eligible to give out FHA loans. But it is nevertheless easier to get your hands on FHA loans than bank loans. For one thing, an FHA lender will not check your credit record before giving you a loan i.e. your credit record has no bearing on whether you are eligible to get FHA loans or not and it is not the deciding factor of the amount of loan you can get either. But it has a flip side too, if you miss out on a repayment date, the increasing interest rate can make you cry for your life.
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There are other different points to that contribute to make FHA loans a very easy and practical solution for any problem concerning hard money for real estate or property. Some of the most significant factors are listed below as follow:

You can get a loan of as much as 97% of the value of the property you are taking the loan for by making as little as a down payment of 3.5% with your own money.

Self employed people are often denied loans by banks and other lending organizations. But to apply for FHA loans, all you need to do is show your tax return proof of the last two years, proof of your profit and loss account for the last two years and proof of balance sheet for the last two years and voila! You can have your desired amount of loan from any FHA lender.


It is not mandatory to have collaterals for getting FHA loans. Unlike banks and other lending agencies, FHA lenders do not make unnecessary fuss about collaterals.


The interest rate is not floating, it is stable hence you can sleep peacefully at night without worrying about the ever increasing interest rates on loans.

It is extremely difficult to get your hands on hard money nowadays, especially after the economic turmoil of 1929 and the more recent recession of 2008 that hit the US market and left it shattered. Hence if you are looking for a loan to buy property but is unable to secure one due to you bad credit rating or for the reason that you are self employed or for any other reason, FHA loans are here to help you cope with your distress while keeping the economy in check.