Fernald Business Association

You plan to take one of the big decisions in your life, purchasing a house. However, you cannot afford to buy conventional house. Hence, you plan to apply for fha home loan that has helped many US citizens in getting their dream house.

What is an fha loan? You should know that fha loan is a mortgage loan which is insured by FHA. It means that FHA does not provide loan but insures it for the lender. Hence, if the borrower defaults, the may get resource from FHA. It makes the lender’s risk is lower. Fha has insured for about 33 million home mortgages since its formed. It continues to help Americans to get their dream house by making them easier to get mortgage.

If you apply for fha loan, you can get some benefits. The first one is low mortgage rates. This loan also helps the home buyers to finance their closing costs. It also offers mortgage insurance. Moreover, fha does not allow the fha lenders to charge the home buyers more than one percent for origination fees. Besides that, there is no prepayment penalty so if you are late in pay the payment, you will not be penalized.