FHA Housing Loans For First-Time Home Buyers and Those Drowning in Mortgage Debt

Having a home is not only an American dream. It is a basic right of every citizen in the country and every citizen must be given access to fulfill this basic right. The US government has been very vigilant in ensuring that enough measures are implemented to help everyone in the country acquire a home to call their own. Part of these measures is instituting the FHA housing loans programs.

The Federal Housing Authority has been giving help for low-income Americans to purchase homes legally since the depression period in the 1930s. The Authority has continued to provide insurance to lenders and extended assistance to thousands of Americans who dream of owning a home. Through this insurance, the Federal Housing Authority is able to assist those who are financially incapable to pay for skyrocketing down payments required in conventional private loan programs.

Through the assistance of the Federal Housing Authority, it would be easier for borrowers to qualify for loans. The insurance that the Authority would provide would limit a borrower's risk and would subsequently be instrumental to the approval of the mortgage.

Aside from the security and protection of the loan, borrowers would also benefit from other perks that the program brings like lower down payments and closing rates. Compared to conventional mortgage insurance programs, approved mortgages would require lower monthly payments, interest rates, and ultimately, preserve homeownership.

The FHA housing loans include, but is not exclusive to, helping first-time homebuyers purchase a home. In April, 2008, President Barrack Obama signed a tax credit to give assistance to first-time homebuyers. The government will give a tax credit amounting to $8,000 to American first-time homeowners who would qualify for this housing loan.

The Federal Housing Authority also serves to help fix problematic loans in the US. The recession that started to go full throttle in 2007 required the Federal Housing Authority to expand their program to give help to more American homeowners not only exclusively to first-time mortgage applicants. The year marked the official institution of the FHA-Secure, the mortgage refinancing program that aims to help homeowners who are sinking deeper into problematic mortgage debt.

FHA housing loans and mortgage refinance programs are viable solutions to put a cap on the rising housing crisis in the US. They do not only help thousands of Americans purchase a home in this time of the mortgage crisis, these fixes also give encouragement to lenders to approve and modify mortgage applications. Since the Federal Housing Authority insures the loans, lenders would suffer less of the blow when the loan goes problematic. Hence, it provides equal opportunities to both borrowers and lenders alike.

Are you looking to buy a home? Are you sinking deeper into your troubled mortgage? If your answer to these questions is a resounding yes, do not fret. Help is underway. The Federal Housing Authority is the best government agency to run to at this time of your hardship. It offers a viable solution to end your mortgage dilemma and fulfill your dream of having a home to call your own. It is a trump card to realize your American dream.

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Loan Modification Is Better Than Filing For Bankruptcy

Many people are in desperate need of help from their lenders in the form of a loan modification. The financial difficulties being faced by these homeowners are causing people to struggle or fail to make their mortgage payments.

With so many homeowners facing foreclosure or bankruptcy, borrowers are looking to their lender to help them modify their loan agreements. They are hopeful about getting some relief in the interest they are paying by having their interest rate, their principle or their monthly payments reduced.

Bankruptcy is a legal recourse a borrower takes when he can no longer pay his bills. Foreclosure is not always avoided when a homeowner files for bankruptcy, nor does the homeowner need to live in their home until the loan is paid off. It is much better to choose a loan modification whenever this option is available as opposed to choosing bankruptcy.

There are many reasons a loan modification is better than filing for bankruptcy:

As soon as your file for bankruptcy, you are powerless to do anything that will save your home. It is important that you know that filing for bankruptcy only keeps your creditors from calling you. Alternatively, if you are approved for a home loan modification you will continue to pay your loan, albeit slowly, and will eventually own your home.

Filing for bankruptcy will almost certainly damage your credit record and it is possible you will never qualify for a mortgage again or if you do qualify, the interest would make it unaffordable. Therefore the best option is to apply for a loan modification which enables you to regularly pay off your loan which will ultimately improve your credit rating.

A well planned loan modification may improve your chances of fixing your credit score. This will never happen if you file for bankruptcy and a bankruptcy will always show on your credit report. If you pay your loan regularly, meeting the terms of your newly modified loan, you will improve your score. Thinking about what options is the best for you, either bankruptcy or loan modification, it is obvious that a loan modification is better. Settling your debts will not damage your records, whereas defaulting on a loan will haunt you for the rest of your life, limiting future opportunities.