Private M.I. Firms Gain on FHA
The Mortgage Insurance Companies of America reported that its members issued 6 percent more policies in September than in August. At the same time, endorsements fell 6 percent at the Federal Housing Administration. MICA also reported that new mortgage insurance applications were virtually unchanged.
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Chase Branches Loses FHA Approval
JPMorgan Chase Bank, N.A., lost its origination approval agreement with the Federal Housing Administration for an office that operates within the jurisdiction of an Atlanta field office, according to the U.S. Department of Housing and Urban Development. In addition, a Chase office was terminated by HUD’s New Orleans office. A Chase spokesman declined to comment on the terminations.
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What Is A FHA Loan?
What is a FHA loan? An FHA loan is a federal assistance mortgage that is insured by the Federal Housing Administration. The loan can be issued by qualified lenders who meet the requirements of the federal board.
FHA loans have allowed Americans who generate lower income than the average to borrow money so that they could buy their own home. If it weren’t for the FHA loan, they wouldn’t be able to afford it.
So whenever one asks you the question, “What is a FHA loan?” You can answer his question by stating that it is one of the best things that ever happened to the blue collared American. The program started in the 1930s during the Great Depression.
The rates of the foreclosures rose so fast that the program was initially started so that the lenders would be able to come up with the sufficient insurance to those who would want to borrow money. In fact, some FHA programs have been subsidized by the government.
The goal is to make this self-supporting depending on the insurance premiums that have been paid by the borrowers.
Over a period of time, the PMI companies or the Private Mortgage Insurance companies entered the picture. Now, the FHA serves those who cannot shell out the down payment or do not qualify for the requirements.
It is hard to explain to a person who asks, “What is a FHA loan?” without elaborating on the details that have already been mentioned in a previous paragraph.
Going back to the history of the FHA loan, it was established to reduce the unemployment rate and increase home construction. At the same time, it is meant to operate as a loan insurance program.
The FHA does not have to make loans nor should it build houses, much less plan it. This is covered by the VA loan programs. If however, the VA qualifies for an FHA loan as well, the financial organization must then ask whether the borrower wants the insurance from his FHA or he can rely entirely on his VA loan.
Either way, those who want to know more about the answer to the question, “What is a FHA loan?” will realize that the VA loan and the FHA loan go hand in hand because this allows the veterans to make the most out of their benefits the minute they resigned from their posts.
One thing that the FHA does not make are loans. Rather, it insures that the loans are provided by the private lenders.
The first step for anyone to get a lender or a mortgage broker that will assist you with your FHA loans.
Learn more about refinancing FHA loans at my site. Discover what are the FHA loan requirements before you apply.
Article Source:http://www.articlesbase.com/loans-articles/what-is-a-fha-loan-1339325.html
The Real First Step to Getting a Great Deal on Your Next Mortgage
photo credit: TheTruthAbout…
In order for you to get your best deal on a mortgage you must first understand the types of companies that are offering mortgage products. Learn how they make their money and half the battle is won! These mortgage companies can be simplified as:
- Brokers
- Broker/Lenders
- Mortgage Lenders
- Banks
Before we continue, I need to stress this single point. There ain’t no free lunch! All companies are in business to make a profit. If your intention is to get someone to work on your loan for free, you will get what you pay for. Read more
Understanding Real Estate Mortgage Loans
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Introduction
Mortgages are loans that are used to purchase real estate and come in many different forms. The most common types are Conventional, FHA and VA. Other types are Second, Reverse and Balloon Mortgages. These loans often involve the use of Discount Points.
Conventional
The conventional loan is the most common type of mortgage used in the nation today. Conventional mortgages are loans between borrowers and lenders that are not insured or guaranteed by the government. Conventional mortgages are either privately insured through private mortgage insurance companies or not insured at all. Conventional loan guidelines typically require a minimum down payment of five percent on owner-occupied (non-rental) properties; higher for investment/rental properties. For mortgages that have a down payment of less than 20%, private mortgage insurance (PMI) is usually required. Most conventional mortgages have time frames of 15 to 30 years and may be either fixed-rate or adjustable. Read more
