The FHA

A licensed mortgage broker is a good resource for people who need a little extra help in getting a mortgage. The Federal Housing Authority wants to help people in that situation as well. Consumers who do not fit the profile of the ideal loan customer – those with credit or income verification problems, or those with credit issues, for example – can go to an experienced mortgage broker for assistance in obtaining a mortgage loan that is underwritten by the FHA. This means customers that lending institutions find less than attractive are not locked out of the housing market. For example, an FHA loan can be a good choice for consumers who have been turned down for a mortgage loan because their down payment was a gift.

Since the Federal Housing Authority does not actually loan funds, but rather it insures lending entities against the possibility that a consumer will default on their loan. Therefore, instead of applying directly to the Authority for a loan, consumers need to file their application with a lender who offers what are commonly referred to as “FHA loans”.

A licensed mortgage broker can offer a consumer a variety of choices so they may be able to take the best advantage of what the FHA loan program has to offer. While not all individuals qualify for FHA insured loans, many people meet the requirements and are able to utilize the assistance offered.

Your mortgage broker will explain how an FHA loan works and inform you about specifics such as the fact that you will most likely be required to carry mortgage insurance until the equity you have in the property meets a specified level.