FHA Loans

FHA Loans in Saint Tammany, LA

Individuals searching for a mortgage loan in the Saint Tammany LA area should consider talking to a lender about the positive aspects of FHA loans. These type of loans are government insured and help new buyers finance a home. Government-backed loans offer many advantages and benefits such as low down payments, low mortgage insurance rates and higher debt ratios. These qualities make this type of loan attractive to many home buyers.

A definite benefit of securing an FHA loan is that it requires less capital. A lower down payment allows individuals on tight budgets to purchase a home with a 5 to 10 percent cash outlay. This benefit allows a homeowner to build equity faster or use cash on other expenses associated with a home.

Lower cost of mortgage insurance is another reason to consider a government-backed loan. This insurance is required by a mortgage lender and ensures that payment is covered in case a homeowner defaults on a loan. Fortunately, for a homeowner that secures a government-backed loan, they will usually pay less on their mortgage insurance than me person would pay on a conventional mortgage. In fact, when the numbers are crunched, sometimes a conventional loan is more expensive because of the required mortgage insurance combined with it.

Interest rates are the same across the board for all borrowers of FHA loans. If a person qualifies for an FHA loan, they obtain the current rate that a loan is being offered at. Often, these rates are competitive with the rates that are associated with conventional loans. A positive benefit about this situation is that buyers who have challenges with their credit are able to qualify for a loan with a competitive rate.

Another added benefit of a nonconventional loan is that it offers an individual with more debt the opportunity to purchase a home with a higher debt ratio. Securing money with a conventional loan requires a person to have a total debt amount lower than 36 percent of their monthly income. This includes the mortgage debt plus any other debts such as loans on cars, boats or credit cards. Guidelines for a nonconventional FHA opportunity allow this number to be 41 percent.

No minimum required credit score is another reason people decide to see if they can qualify for an FHA option. FHA regulations allow people with little credit to get loans, and those with credit should have a history of no negative marks for a year. People with bankruptcies or foreclosures are also treated less stringently than they would be if they applied for a conventional loan. This gives home buyers an opportunity to secure a home sooner after they've gone through a bankruptcy or foreclosure.

Contacting a mortgage lender such as Sun Mortgage Funding is the next step a person should take if they are interested in securing an FHA loan.

Sun Mortgage Funding

3525 N. Causeway Boulevard , Suite 900

Metairie, LA 70002

Office: 504-837-3939

Fax: 504-837-1762

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