Helping People Become Homeowners Since 1934

It seems like everyone in Real Estate is talking about FHA loans these days. Just this week it was the headline on inman.com “The facts on FHA-insured loans" http://www.inman.com/buyers-sellers/columnists/jackguttentag/the-facts-fha-insured-loans and it was a major topic of discussion at the NAHB convention. Interestingly, it has not been widely written about in either the New York Times or The Wall Street Journal, maybe because FHA loans are not anything new and aren’t going to save the real estate market.

As Jeff Belonger, FHA expert said “I am tired of listening to loan officers, realtors, and the average consumer get all excited because FHA mortgages are back. People, they never left. FHA loans are not the new subprime mortgages” http://activerain.com/blogsview/503019/FHA-loans-FHA-rates-Why-so-different-from-conventional-loans. That being said, Jeff goes on to say, and I agree, FHA loans in many cases are better then conventional loans and CAN HELP people buy homes.

This is the deal, straight from The US Department of Housing and Urban Development’s mouth (http://www.hud.gov/buying/loans.cfm) “FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.”

Specifically what they mean is that FHA loans allow you to do the following:

• Provide a lower down payment. Typically 10-20% of the purchase price is required as a down payment on your home. With an FHA loan you can put down as little as 3.5%.
• Qualify with lower credit scores. Because FHA is insuring your mortgage you may be eligible to qualify for a loan even if you have had some credit problems in your past. In fact, a lower cumulative credit score can qualify for FHA loan then typically required from other home loans.
• Down payments can be gifted. Don’t have enough for a down payment but have a rich uncle? He can gift you the money with no penalties.

Excited yet? FHA loans are the real deal and can help put homeownership in your reach. There is one catch however, if you are looking at multi-family housing (i.e. one of the many beautiful new condo buildings on the market) – the building must be pre-approved by HUD. Luckily for you, we would like to announce that Adam’s Square, Hoboken’s hottest new address has just been granted HUD approval!!! That’s right, you can purchase an outstanding one, two, or three bedroom home in this venerable building that expertly blends historic grandeur, modern amenities, and the convenience of an urban lifestyle with your shiny new FHA loan. http://www.adamssquare.com/