The inability to achieve solvency, to use one’s assets and resources to meet one’s monetary obligations, is like financial impotence. It is disappointing. It is frustrating. It creates feelings of loneliness and inadequacy. It is not a welcomed experience.
Impotence is sometimes the result of the lifestyle of the person like unhealthy eating, too little exercise, and other unhealthy habits. Other times it is not. Likewise, projectile dysfunction, the need to declare bankruptcy because of an inability to achieve solvency, can be the direct result of unwise financial living and completely within the control of the individual. Then there are times when failed businesses through no fault of the entrepreneur, deaths, divorce resulting from utterly irreconcilable differences, unexpected and costly illnesses, and other circumstances leave a person in a preemptory position with no hopes for solvency and a declaration of bankruptcy the only option.
Just about there is where we at Nationwide Home Loans juxtaposing with FHA Loans are able to be of service. The FHA program does not finance home loans nor build homes. It provides mortgage insurance. Since 1934 the Federal Housing Administration has managed a loan program that has traditionally opened doors to Americans who may not have had access to traditional lending options because of down payment requirements and the ability to obtain private mortgage insurance. When the program began during the Great Depression the objective then was to help lenders because of the number of loans defaulting. Borrowers pay a 1.75% mortgage insurance premium of the base loan amount at closing in order to qualify for a FHA loan.
Everything we do at Nationwide, though, lends, pardon the pun, toward those seeking personal economic balance. Our team of service representatives and mortgage experts are prepared to mentor applicants through the application and service of the FHA loan whether the applicant a first-time buyer or a veteran of the home buying experience.
We at Nationwide do not support the practice of tricks or the use of misleading or incomplete wording. Ostensible communications to the client about what is expected or needs to happen, we believe, are what enable us to offer the best home loan experience for the client in the industry.
FHA loans Fort Lauderdale are just one of the tools in our portfolio of lending products. Fixed-rate and adjustable-rate conventional mortgage loans, veteran loans, reverse mortgage plus others help assure our customers that they are dealing with an institution that understands the lending market and that means competitive rates and multiple loan options for them.
The distinguishing factor of FHA loans from traditional ones is that the government pays if the borrower defaults and the lender does not lose its money. They are a type of federal assistance. That risk for the lender is often what prevents low to moderate income families from obtaining financing. For a lot of American families, the 20% down payment for a mortgage loan is an impossibility.
Not only that, even if they have the down payment, putting all of one’s cash flow into a mortgage is a risky position to be in for the borrower. An FHA loan has a typical down payment requirement of only 3.5%. Up-front costs are lower through an FHA loan because this loan program allows the lender or the builder who might be interested in facilitating the sale of a home to pay the borrower’s closing costs. Another alternative with the same result is the borrower can incorporate the closing costs into the overall loan amount and amortize them over the life of the loan.
Appealing? We think so. One requirement for an FHA loan is that the applicants must demonstrate an uninterrupted work history for a least twenty-four consecutive months. Applicants must also have a minimum credit score of 580 to qualify for a maximum loan amount. The total monthly mortgage payment cannot exceed 31% of the applicant’s monthly gross income. And the house being bought must be the primary residence and not one flipped into a rental.