iNest Newsletter

FHA Mortgage Guarantees Are A Game Changer For New Home Buyers

The downturn in the housing market is largely due to poor lending practices. However, while the credit and income standards for obtaining mortgages have become tighter in the past year, the U.S. government is helping to make sure that mortgages are still available through the Federal Housing Administration (FHA). The FHA's efforts to make affordable mortgages available has been greatly expanded. The FHA is making it possible for qualified home buyers to obtain mortgages that only require a 3% down payment.

Home buyers are rapidly embracing the expanded availability of FHA mortgage guarantees. In fact, one leading home builder has announced that 40% of their sales are now to homebuyers with FHA guaranteed mortgages. The safety net provided to lenders by FHA guarantees is the reason that lenders are making 3% down payment mortgages available. The FHA doesn't actually make loans. Instead, this agency offers a guarantee that reimburses your lender if you don't pay back your loan.

For additional information about FHA guaranteed mortgages, read these articles provided by iNest's parent company, Lending Tree,

How an FHA Loan Works http://www.lendingtree.com/smartborrower/Special-loan-programs/How-an-FHA-loan-works-.aspx

Borrowers Flock to FHA Loans http://www.lendingtree.com/smartborrower/Mortgage-News/Borrowers-flock-to-FHA-loans.aspx

FHA guaranteed loans are not for everyone. If a buyer can put down a large enough down payment to avoid having to pay mortgage insurance (typically 20%), then they would be unlikely to benefit from an FHA guarantee. However, if a 3% down payment is appropriate for your needs, you should definitely consider an FHA guaranteed mortgage. Most iNest Featured Builders have strong relationships with FHA approved lenders, and Lending Tree can assist you in obtaining an FHA guaranteed loan. Contact your preferred builder, Lending Tree, or your financial institution for a referral to a FHA approved mortgage lender that can provide details about terms and requirements.

Why This Is A Game Changer

Even if you are not interested in an FHA mortgage, the increased availability of these loans is helping builders to reduce the glut on new homes on the market. Currently, we are in the midst of a buyers market. This is great for buyers and challenging for builders. Home builders are selling homes for close to or below cost in order to reduce the inventory glut. However, this situation will not last for ever. Take advantage of today's low mortgage rates, the availability of 3% down mortgages, the huge selection of available homes, and great prices to purchase the home of your dreams.

Start searching for new homes now. http://www.internest.com/xyz/newhomesstart.asp