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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