FHA Government Christian Home Loan
FHA governmen home Christian loans are Federal Housing Administration loans that began in the 1930's to resolve the economic problems that plagued the nation from the Great Depression. The purpose of these funds was to encourage wider home ownership, to improve housing standards and to create a better method of financing mortgages. The FHA government home loan has achieved all of these purposes since its inception and even gone beyond them. This was all accomplished without granting a single amount, as this lending is not made directly by the federal government.
FHA lending is made possible using federal credit to insure the mortgage funds. While this program was rejected at first by many lenders, it is readily available to a large number of borrowers. Even in the tightest money markets, there has always been funding available for FHA government home loans. This type of lending first became available in 1934. The housing market had been financed for 50%-60% of their sales price on a first mortgage of three to five years, with a small second and even third mortgage at increasingly higher interest rates. A FHA government home loan introduced a better way.
By offering to insure borrowed funds up to 80% of value, the lender is able to insist that the down payment be made in cash, permit no secondary financing, and command a moderate interest rate. FHA government home loans were for long terms, up to 20 years at first, and fully amortized over the term. Each monthly payment included a premium to cover the cost of mortgage default insurance. Most of the features of the FHA government home loan were later implemented in the VA guarantee program which services veterans and their spouses. Fortunately, even through federal programs, God provides help for those who need it. "Our soul waiteth for the LORD: he is our help and our shield" (Psalm 33:20).
Today, this program offers a borrower the opportunity to purchase a home with only 3% down. Conventional loans still require 10%-20% as a down payment. FHA government home loans also allow the borrower to wrap the closing costs into the mortgage. Closing costs are typically the responsibility of the buyer, unless otherwise stated in the purchase agreement. The Federal Housing Administration currently has over 50 different programs in its portfolio of assistance to borrowers for homes, improvements, nursing homes, mobile home parks, multifamily projects, and land developments. FHA government home loan programs have also helped members of the armed forces, disaster victims, and those interested in urban housing renewal. Consumers can find more information on the Federal Housing Administration's website and also through local real estate agents.
A federal home loan offers new opportunity for people that otherwise could not get good financing. The FHA, or Federal Housing Administration, lending is sponsored by HUD or the Department of Housing and Urban Development, and the VA financing is sponsored by the Department of Veteran Affairs. They are typically not directly given, but are guarantee programs that offer the lender security for lending to borrowers that qualify through federal guidelines. Determining if traditional financing or a federal home loan is best for the borrower is dependent upon the purpose.
The FHA option is granted to first time homebuyers with an amount limit based on the geographical location of the home, and whether or not the home is a single or multiple dwelling building. They allow a borrower to obtain financing with only a 3% down payment. Traditional financing require 10%-20% down. The FHA federal home loan also allows the borrower to wrap all the closing costs into the mortgage. It is typically the responsibility of the home buyer to pay for all closing costs, unless negotiated otherwise.
VA financing is available to veterans and their spouses only. These types of federal home loans allow the veteran to purchase a house, up to a certain limit depending on the geographical location, with zero money down. Another benefit that exists with VA financing that does not exist with the FHA federal home loans is the option to become eligible for the same amount once the previous loan has been paid off. Where FHA federal home loans are open to first time homebuyers, the VA loan can be used multiple times, up to the limit. If a veteran wants to purchase 2 pieces of property simultaneously, where the combined total equals the loan limit, it is allowed. Romans 13:7 instructs God's people to "Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour."
While both guarantee programs offer great benefits, the interest rates offered to the borrowers are still determined by the credit score of the borrower, regardless of the federal home loan program utilized. It is advised that a borrower receive a copy of his/her credit report to scan for inaccuracies. If the credit score is low, the borrower can raise it quickly by simply paying down the credit card balances, if any, to lower than 20% of their total limit. This can raise a credit score up to 30 points in 30 days. However, It is better to have zero debt.
Government Home Christian LoanGovernment home loans allow people to receive financial assistance toward the purchase of a house when saving money is not a possibility. FHA funding from the Federal Housing Administration or assistance from the VA or Veteran Administration are just a few of the programs that consumers can seek. Both government home loan programs are guaranteed by the federal government. The FHA funding is sponsored by the US Department of Housing Urban and Development. It is primarily used for first time buyers; however variations have recently been added to allow more flexibility. The FHA program was established in the mid 1900's as a way to allow low to moderate income families the opportunity to purchase a house.
Typically FHA funding is granted through the traditional lending institution. In traditional mortgages, a 10%-20% down payment is required to secure the mortgage. With the FHA government home loan, a 3% down payment is all that is required. This makes an extreme difference in whether or not a person will ever be able to buy a house. For example: to purchase a $150,000 home, a traditional mortgage would require $15,000-$30,000 down. Low to moderate income families would never be able to save up this kind of money for the purchase of a house while paying rent. Through FHA government home loans, those families will only have to save $4500 to qualify.
In recent years, with housing costs continued to skyrocket, the FHA program has allowed for 100% financing. This is a new concept and no all lenders offer this type of government home loan. FHA government home loans also allow the borrower to wrap all closing costs into the mortgage. This amount would normally cost the borrower an additional $1200-$5000 in cash at closing. Closing costs are typically the responsibility of the buyer unless otherwise agreed upon. By allowing the closing costs to be wrapped into FHA funding, a low to moderate income family can actually realize their dream of owning a house.
The other type of program that many people may seek is the VA program. This is only available to veterans and their spouses. It allows for 100% financing with zero down. VA government home loans also allow the borrower to wrap the closing costs into the mortgage. Both FHA and VA programs have a limited price for which the borrower can purchase a house. These limits are based on geographic location and the housing market in the area. The unique rule for a VA government home loan is the ability to purchase multiple dwellings simultaneously while staying under the limit, and the option to use the program over and over again, once the balance on the loan has been paid. With assistance from the VA, people can also receive direct loans in instances when a veteran cannot meet bank qualifications. "Through wisdom is an house built; and by understanding it is established" (Proverbs 24:3). Taking the time to consider all available options and funding before purchasing or building a house will allow the consumer to make the best financial decisions.
FHA home improvement loans are funds which enable homeowners to fund the remodeling projects they have always wanted to do but simply never seemed to have enough money to do so. This also gives homeowners the opportunity to increase the value of their homes by added conveniences and making their houses more energy efficient. There are several specific improvements that a FHA home improvement loan will fund at attractive interest rates. The Federal Housing Administration website, as well as mortgage and lending companies that offer FHA lending can provide the specific qualifications and lending limits associated with this lending program.
To make getting repairs easier, and to make completing these repairs affordable, the Federal Housing Administration (FHA) has developed a home improvement loan called a Title 1 loan. FHA home improvement loans are not granted or extended by the Federal Government but rather from lending agencies that meet standards set forth by the Housing Administration. The Federal Housing Administration insures the loan for the lending agency, meaning that if a borrower is default on a FHA home improvement loan, the FHA pays the remainder owed to the lending company. Then, the federal government will pursue the defaulter, or homeowner, for repayment of the amount owed. This federal backing enables lenders to offer much lower interest rates as compared to traditional home equity lending programs.
The Title I programs offers funding for improvements that generally will cost $25,000 or less. Such improvements can include flooring upgrades, heating and air conditioning, paint, roof replacements or repairs, electrical wiring, room and garage additions, and much, much more. FHA home improvement loans do not cover swimming pool installations. This program is not only designed to assist homeowners, but the goal of the Housing Administration is also helping to keep neighborhoods in good condition and helping America stay beautiful by making it more affordable to make housing improvements.
Qualifying for an FHA home improvement loan is exciting, and will cost less than most other conventional home loans. It is important to be prudent, however, in all of the decisions concerning borrowing. Keeping the home at a neighborhood market value is wise, by not over-building for the area. God wants us to keep healthy perspectives in all earthly things. He knows we need to have Christian homes to live in, yet we need to make wise, not frivolous decisions with this asset. But, He wants to be the first priority in our lives. "Set your affection on things above, not on things on the earth." (Colossians 3:2)