As the turmoil in the real estate and banking world rises, there still might be one safe bet for those who want to own their own home—an FHA (Federal Housing Administration) loan. FHA loans are government backed, making it easier for lenders to offer their customers better rates, lower down payments, and more credit score leniency. 

People often think of FHA loans as the answer to first time loans. But FHA can be so much more. They can help current owners improve their home’s value with a refinance, adding enough money to pay for repairs or renovations.

But FHA doesn’t only help borrowers and home owners. FHA is great for communities. The program allows borrowers to finance handyman specials, adding enough money to the borrowed amount to make the home livable. Such programs help the economy by circulating the money. But it also helps the community by improving the overall housing condition. Each ‘fixed up home’ adds to the neighborhood’s appearance and to the average home value in that area.

If you haven’t been able to save enough money for a conventional home, and you’ve decided it’s time to become an official home owner, then you can generally obtain an FHA loan with as little as 3.5% down. They’ll usually incorporate the closing costs within the loan, so first time owners will be able to use the money they saved to purchase all those little things that they would need to make the big move.

While the economy is sinking, there are a few tricks we can use to pad our landing, and FHA is one of them.

For more information on FHA loans please contact:

Jae McPherson at Chicago Bancorp, A National Mortgage Banker 312.617.1723