Home at Last – Thanks to FHA Housing Loans

My husband and I have been married for two years and like all newly wed couples who are just starting out their lives together, one of our major considerations was to buy a home. It is after all, needed in starting a family.

What is FHA Loans?

A year ago, my wife and I started going around Tampa Bay area here in San Francisco to look for home that both fits out lifestyles and our budget. It was both exciting and challenging at the same time because while we are enjoying the options we know that we need to make do with the budget that we have. All in all, the quest to find the right home for us was not an easy one, especially considering that we do not have much savings to pay for the skyrocketing down payments the agents are offering us.

Those were very stressful times and it does not only affect our back accounts, but also our relationship. The whole hunt for the perfect house became a source of most of our fights. Then one day, we decided to sit down and talk about our options in getting out of this dilemma and stress about finally settling with a decision regarding purchasing a home.

We studied our options. I suggested something along the lines of going back to my parents’ house in Kansas, but of course, that option was out of the equation before we even discussed the pros and cons. Then, my husband convinced me about applying for one of those FHA housing loans. He said he read about it on the papers and knew someone from work who got his mortgage by applying for this loan.



It seems like a safe option (way better than living in my parents’ house) so we both decided to go through with it. My husband asked the help of his buddy from work and was told to log on to website of a nonprofit organization based in New Jersey that offers free assistance and information regarding FHA loans.

The website looks legitimate and my husband’s friend said that the nonprofit organization has all the legal papers to back up their claim to help people like us. It is good to know that something worthwhile exists on the Internet these days aside from controversial celebrity bloggers and scams.

We signed up to get help and days later, we got a call from them saying that they are ready to process our FHA housing loans and that all we need to do is to provide the necessary documents required by the Federal Housing Authority. Good thing we got all these documents covered and prepared so it did not take us that long to turn in the requirements to our assigned mortgage lawyer.

Months after that, we finally got our loan approved! We found a perfect little home in Tampa Bay area and it is just what we wanted. It is accessible and fits our budget perfectly. I guess we are just very lucky to have such kind people who helped us get through our quest to find a home.

FHA Loans Eligibility Requirements

FHA loans are a response to the dwindling economy of ours. Millions of foreclosures are happening right now. There is an urgent need for the government to try and stop this from avalanching into another major economic crisis. Thus, the FHA has been mobilized and given a shot from the Obama bailout fund.

FHA housing loans


For those looking for FHA loans in order cut back on their financial problems here are some of the eligibility requirements:

* The potential borrower should be able to qualify for the FHA loan.

* As with usual mortgages, the FHA approved lender needs to verify whether or not the borrower meets the qualifications by looking into the borrower’s assets, other debt load, income, and credit history.

* As usual, there is an income limitation. Those who can actually afford to pay the monthlies as computed against their other monthly expenses will be qualified.

* The borrow should have a valid U.S. social security number since only United States citizens that are of legal age can obtain an FHA loan mortgage.

* Even though there are no minimum FICO score requirements in order to qualify for an FHA loan, one’s score will still be the basis for the exact interest rate that will be given.

Remember that the FHA will look for good candidates. Even though nearly everyone can get these loans, there is still a certain kind of person that the FHA prefers to give loans to and that would be a great fit for the program. The FHA is a great option for people who are getting home loans for the very first time. This is because the down payment requirement is not so high as compared to other mortgage deals. FHA loans down payments usually just require the borrower to pay 3 percent of the amount of the entire mortgage.

A Look Back at the Great Depression and FHA Loans

Back in the day that it was formed, the Federal Housing Administration has always been designed to cater to the middle and low income families who need loans. This is no surprise since the Federal Housing Administration or FHA was created during the great depression when millions of Americans were all in the brink of bankruptcy and people where loosing nearly everything.

One can just look back at the Great Depression and truly feel the suffering of the American people during those times. There are many pictures documenting how people gathered in the streets to get food and one day hiring jobs. There were also a lot of rich people who were severely damaged by that economic depression. A lot of companies sunk down to the abyss and the many business men, in their great dismay, even took their own lives as a consequence of the unbearable loss.


FHA loan mortgage

Now, we are sort of seeing a repeat of what happened all those years ago. Now, the degree of poverty might not exactly be the same, but the general blow to the economy, they say, is just as big. Millions and millions of U.S. citizens are jobless and homeless. There are many businesses that are closing down. Foreclosure signs are as common as daisies. Bankruptcies are going on left and right. The Obama administration is doing something about this mess of an economy handed to them by the Bush administration. The Obama bailout program is injecting money to the FHA in order to provide people with a loan that they can get despite their credit score or income.

This is the FHA loan. These are loans that insured by the federal government. That means that if the borrower defaults on this loan, the FHA is going to pay the bank or private lender to cover the balance.