Leader1 Financial – Your Austin FHA Mortgage Lender
Leader1 Financial is an approved Austin FHA mortgage lender. The Federal Housing Administration (FHA) was created in times very similar to what the country is experiencing now. The FHA came into being in 1934 in the midst the Great Depression when it was difficult for the average American to meet the standards for a mortgage loan and only 40 percent of the country were homeowners. While home ownership across the country is well over 60 percent now, once again terms can be difficult to meet due to strict banking standards and a tough economy.
What does it mean to be an approved FHA Mortgage Lender?
The FHA doesn’t make loans, but rather insures the mortgage loans made by FHA approved lenders. This means a couple of things for those looking for an approved FHA mortgage lender to help with Austin home loans. First, with the FHA insuring the loan the lender has more flexibility and less risk. Secondly, an FHA loan can be made with a lower down payment than a conventional loan.
How to Qualify for an FHA Mortgage? An FHA Mortgage Lender offers Advice
The first step is finding an FHA mortgage lender, like LeaderOne Austin. To qualify for an FHA mortgage, you must be seeking a mortgage for a primary residence on a one to four unit home and meet standard FHA requirements. The borrower can finance approximately 96.5 percent of the loan, but, generally, the borrower must make a down payment of at least 3.5 percent of the home price (Required by the Housing and Economic Recovery Act of 2008.)
While there are no income limits, an FHA loan is not for everyone. Because so much of the loan is being financed, the interest rate is not always the lowest. An FHA loan is designed to help Americans who may not qualify for a conventional loan in terms of income and down payment. However, the borrower still needs to have good credit and verifiable sources of income. If you are searching for first time home buyer loans, an FHA mortgage lender is an excellent place to start.