What is an FHA loan?
An FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration.
Essentially, this means that it allows people to own a home that they will not, in any other circumstances, be able to afford.
The FHA loans were first introduced at the time of the Great Depression, when the number of foreclosures on mortgages rose sharply. The Federal Housing Administration (FHA) stepped in and provided the lenders with sufficient insurance, so that in case the borrower fails to meet the mortgage conditions or fails to make payment, the risk of loss to the lender will be covered by the FHA. This made the lenders more willing to give out loans.
An FHA loan usually works like this. When the borrower requests for a loan with any financial institution, he/she is given the option of an FHA insured loan or the lender insists that he/she gets the loan insured by the FHA. In return for a reasonable premium, the FHA insures the financial institution against any loss due to default on payments or failure to meet any mortgage conditions.
Getting an FHA loan can be a tedious process.
If you do not have the best person helping you through this, you will most likely end up not being eligible for the loan. Why take a risk on your chance to own your dream home?
Dianne Crosby has years of experience as an FHA loan agent in California. Each of her clients will gladly swear by her services related to Loan Assistance.
Let Dianne help you obtain FHA financing through appropriate Loan Assistance measures, and you can rest assured that you are on the way to owning your dream home in California.