For those in the northwest corner of Louisiana, many call Caddo LA home. This long- standing community that is known as Caddo Parish was established in 1838. This robust community was once known as the gateway to the west, a final settlement before pioneers headed off toward what would be Texas or beyond. Now the area boasts many families that have been in the community for generations or some that just moved to the area. When these families need a FHA loan to purchase a home, they can call on Sun Mortgage Funding.
What Are FHA Loans?
The FHA loan program was started to help those wanting to secure a home loan, especially first time homeowners, by offering loans that were insured by the government. The program was started in response to the housing crash in the 1930’s when many homes went into foreclosure and default. The program gives mortgage lenders incentive to issue loans to applicants, as the loans are insured and the risk is low.
Benefits Of a FHA Loan
Especially due to the recent turmoil in the economy, many home buyers may not have perfect credit or a substantial amount of money saved for a down payment. FHA loans can help those that are struggling to be approved for a conventional home loan. Some of the benefits are:
- Lower down payment. Many traditional home loans require at least a 20% down payment. With an FHA loan, as little as 3.5% may be needed to secure financing.
- Credit issues. Another benefit to a FHA loan is that buyers do not need perfect credit. Young people with little credit or those who have had credit issues may still qualify for a FHA loan.
A mortgage lender is able to offer these loans because the FHA insures them. These loans also require that buyers purchase mortgage insurance as well, making it a lower risk for both the FHA and lenders. The home must meet certain criteria and be inspected by a FHA-approved appraiser. However, these stipulations can be outweighed by the opportunity for those who do not qualify for other mortgage loantypes to still be able to buy their own home.
For those who are looking to buy a home in Caddo LA, Sun Mortgage Funding now offers FHA and other types of home loans. They are a full service mortgage lender and have helped many Louisiana residents get a mortgage loan. Visit their website at http://www.sunmortgagefunding.com/ to see their full list of services they offer.