FHA - Home Loan Program?
The FHA HUD loan program has been assisting people with real
estate purchases since the Great Depression. Tens of millions of
mortgage have been insured by HUD through the years, and they have
provided a wealth of assistance and information to home buyers.
-HUD can become involved even before you sign your first real
estate contract. HUD provides housing counseling. You will obtain a
basic knowledge of the real estate process to get a better idea of
what to look for when you begin your search for a home. HUD
counselors provide budget counseling, tips to clear up a tarnished
credit score and the anticipated costs of owning a home. The
information will prove invaluable.
-Home Loan assistance. HUD doesn't normally loan money for first
mortgages, it insures a mortgage given by a HUD approved lender.
Because the mortgage is insured, the lender is permitted to relax
normal down payment requirements. A HUD approved mortgage can be
granted with less than a 5% down payment.
-Home Repair Assistance. If the home you intend to purchase
needs extensive repairs, HUD will allow you to make the repairs and
then roll the cost of repairs into a single mortgage. This
innovative program can allow you to buy a home in need of TLC for a
bargain price, put the sweat equity in and then finance the repairs
over a long term.
-HUD provides both information and financial assistance for
energy efficient upgrades to your home. Coupled with tax breaks for
energy efficiency renovations, the cost of making your home more
green may be much less than you realize.
-If a manufactured home is right for you, HUD will approve
mortgages for manufactured homes and mobile homes. A HUD assisted
mortgage for such a home often has far more attractive interest
rates than a purely private mortgage.
-Reverse mortgages for seniors. This is a relatively new program
for senior citizens, who often have a great deal of equity in their
home, but little in the way of liquid assets. A HUD assisted
reverse mortgage can be of great help in these situations. The
homeowner will provide a portion of their home equity to a third
party lender, who pays the homeowner cash for the equity. The
homeowner will be permitted to retain their home for as long as
they live, and have cash for living expenses.
Utilizing HUD makes strong financial sense. Both their
educational materials and housing assistance can place you in the
right position for your home purchase. A call to a HUD approved
lender or a visit to the HUD website is a step in the right
direction.