The FHA loan program was originally designed specifically to help first time home buyers. But that was a long time ago. The program today is really for anyone; those who want to become home-owners, those who need to refinance, or those who want to invest in properties. Everyone knows that conventional housing loans right now have very tight credit requirements. This is not the case with FHA. These loans do not require the borrower have perfect credit to qualify.
Once you obtain this loan, you will now become a full pledged property owner. And the best part is that an FHA financed home can be enrolled in a reverse mortgage fund so you can have a steady source of income during your retirement years.
The federal government insures all the loans in the FHA program. Because of this, many lenders are ready to offer different deals for borrowers. Some people think that FHA loan can be used to buy any type of house. You need to understand that this type of loan has some inclusions too. It can be used to finance single family home, a condo unit, one to four family homes, and many others.
If you buy a home today when you are still young, then you will have a very valuable asset when you go into retirement. You probably know already that the regular senior pension is usually not enough to sustain a retiree's needs. A second source of income is usually needed by retirees. FHA backed homes can qualify for the reverse mortgage program which guarantees a solid income for retirees.
FHA loans can also provide unique benefits for first time homebuyers. FHA financing has much lower down payment requirement. Borrowers are only required to put up three percent of the total sale value as down payment. This specific feature drives many borrowers to obtain FHA loans. And when you apply for a reverse mortgage when you get old, the lenders will simply evaluate the current value of your property so you can cash-out your equity.
It is very easy to qualify for FHA loans. People who do not have stellar credit ratings could still qualify for the loan. Obviously, FHA loans are less stringent compared to traditional commercial housing loans. Of course, you are required to submit the usual documentations. However, many FHA loan borrowers experienced few hassles during the application process. And if you get approved for reverse mortgage using your FHA backed home, you stand to earn tax free income on top of your regular monthly pension.
Many first time homebuyers already benefited from FHA loans. Since this loan was introduced, it already helped numerous Americans to acquire their own homes. Most important of all, your home investment today can be used effectively as a source of good income when you retire.
FHA loans pave the way for you to own a new home. Buying a property is a good investment and you can rely on it for your future needs. You can use your FHA backed home to cash out your equity through the reverse mortgage program.
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