Getting approved for a standard mortgage loan may prove difficult for many first time buyers and those looking at refinancing. This is usually due to less than perfect credit or a lack of cash. However, FHA Loans may offer a more feasible solution. This type of loan typically has a much lower down payment requirement(about three percent) which allows the individual time to build their finances through a number of ways. Unlike the credit scoring used for standard products, these loans can help people with credit problems get approval much easier.
What Is An FHA Mortgage
An FHA mortgage is a mortgage that has been backed by the government's Federal Housing Administration for qualified individuals who need to raise sufficient funds to buy property. Having FHA insurance backing allows consumers with a lower credit score or insufficient funds to make a down payment less of a risk to a mortgage lender.
Who Can Take Advantage of FHA Mortgages?
Actually, a variety of individuals in different situations can apply for these loans who:
* Need a low cost payment solution.
* Want to refinance at a lower cost.
* Can't cover traditional closing expense.
Although FHA mortgages may be cost-effective solutions for some, they may not be a good fit for everyone, since applicants must meet certain qualifying criteria. Consumers may first want to explore their options by using a mortgage calculator and online comparison services to find the best product for their needs. Because mortgage solutions are capped at different levels across the country, the state where a consumer lives will affect how much they can borrow.
Sun Mortgage Funding
Founded in 1996, Sun Mortgage is now offering a new initiative to promote FHA mortgages for home ownership and advantageous refinance options to consumers at a more competitive rate. Historically low interest rates and increased availability of mortgage lenders makes this the ideal time for consumers to take advantage of what this mortgage company has to offer; allowing them to gain more equity in their home when they make their initial down payment and with their monthly mortgage payments.
Funding from Sun Mortgage can provide borrowers with availability to both adjustable-rate mortgages or fixed-rates in a variety of terms. Buyers can take advantage of fixer-upper opportunities that may allow them to add their purchase price and repair costs into one loan at a low-interest rate, and receive support and guidance throughout the lending process so that their financing needs are met in today's rebounding housing market.