Home ownership - its part of the American dream. A place to call your own, to raise your family, a sanctuary when the world gets to be too much; a home is all of these and so much more. Unfortunately, many people believe that home ownership is out of their reach. They believe that due to a lack of credit history, low income, or any other number of things, they won't be able to secure a mortgage with a reasonable, affordable interest rate. Fortunately for them, the Federal Housing Administration offers various home ownership programs, including the FHA rehab loan.
The FHA rehab loan is one of the FHA's programs designed to help first
time homeowners secure affordable home loans, and is specifically
designed for the potential homeowner looking to buy and rehab a home.
As they are searching the housing market for a place to call their own,
many first time homeowners consider purchasing a "fixer-upper". A good
source of "fixer-uppers" is HUD Homes for sale. Oftentimes, homes that
could use remodeling are the least expensive ones on the market. This,
combined with the opportunity to remodel to their own specifications,
draws many first time homeowners to these "fixer-uppers".
It is for these people that the FHA rehab loan is especially helpful.
Traditionally, a homeowner wanting to remodel a home would have to
acquire two loans - one for the acquisition of the property, and a
second for the rehab. Then, when the property has been finished, they
must acquire a third, permanent mortgage to pay off the first two loans.
With a FHA rehab loan however, potential homeowners are able to acquire
one mortgage, both for the acquisition of the property and for the
rehab of it.
It is important to note that the FHA itself does not loan money. An FHA
rehab loan is a loan offered by a bank or mortgage company, and insured
against default by the FHA. Through this program, lenders are able to
offer lower down payments and smaller interest rates, something they
wouldn't otherwise be able to do for first time homeowners.
Many first time homeowners qualify for these FHA insured loans. There
are no income limits, and you don't have to have perfect credit. And the
benefits of an FHA rehab loan over a traditional loan are clear: they
are easier to qualify for, they have lower down payments and interest
rates, and they are easier to qualify for.
So if you are one of the millions of Americans out there ready to own
your own home, then contact an FHA-approved lender today. The dream of
remodeling your first home is likely closer than you think because of
the availability of a FHA rehab loan.
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