Tuesday, September 9, 2014

FHA Makes Owning Homes Possible for People With Bad Credit

Owning your own home is now possible despite the fact that you have bad credit.

If you are among those individuals wanting to own a home but have bad credit, you will be delighted to know that is now possible to achieve this. FHA home mortgages are now being given to people with blemished credit. The Federal Housing Administration is a government agency that insures the loan you are applying for from private lenders. Anytime you are unable to pay, they will partly do so on your behalf. With the government securing the loan, it definitely gives lending company the assurance they need. For this reason, even with a bruised credit score, you can apply for this loan and use it to buy or construct your own home.

After the economic recession and the downfall of the real estate business a few years back, construction business today is showing positive signs of getting back on its feet. Businesses are recovering. People are now finding financial stability bit by bit. If you desire to have your own home but you have a bad credit, then apply for the FHA housing loan today.

Some people without a financial background find it difficult to apply for a mortgage. Other people with blemished credit, who want to improve their credit score, use this loan product to repair their credit standing. An FHA mortgage loan requires only a small down payment-about 3% of the total loan amount which you can easily save up for when planning to buy a house. Depending on your purchase price, you can still maintain a fairly low monthly payment. Moreover, with interest rates for mortgages at an all-time low, you can get a huge break on the interest portion of your payment. This loan comes with a requirement for Private Mortgage Insurance, which will increase your monthly payment, but it will be removed once you pay down the loan amount to less than 80% of the purchase price. So, if you want to increase your credit score and you qualify for an FHA loan, now is the time to take advantage of low house prices and low interest rates.

Qualifying for a loan like being quite simple. Aside from being of legal age and a US citizen, you should also have a valid social security number. There is no minimum financial requirement but you need to prove that you have a steady job and you pay your bills regularly. Your income to debt ratio should show that 29% of your income goes to your home costs while 41% goes to your bills and other long term loans. The good news is a lot of people, when applying for an FHA mortgage, are getting approved and are now on their way into owning a house of their own.

When buying a home, don't overlook the importance of due diligence. Home inspection services are vital to ensure you are buying a home that is worth your investment dollars. But, not all home inspectors are created equally. Many states do not require home inspectors to be certified in anything and you can easily obtain a home inspection that isn't worth much in value. However, many qualified home inspectors are certified by the American Society of Home Inspectors (ASHI) and carry a coverted certification with this long-standing, professional organization. Moreover, home inspectors who are worth their salt further their certifications and increase their education in the home building industry. Many quality home inspectors have additional certifications in International Code Council (ICC) and/or specialize in specific testing like radon testing, home energy audits or pest infestations. Do you homework before selecting a mortgage lender for your home finances. But, most importantly, do your research before requesting the services for due diligence vendors. Select a home inspector who will give you a fair, honest and unbiased review of your potential home before you make the purchase. A certified home inspector is worth every dollar they request for their services. They will analyze the integrity of the home's structures and provide you with the knowledge to make a wise home investment decision.

Champia Real Estate Inspections provides commercial and residential home inspections in the Atlanta, GA, Tampa,FL and Orlando, FL areas with ASHI certified home inspectors. Our certified inspectors will deliver complete residential reports within 24 hours, with commercial inspection reports returned within 4 days.
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