What is FHA, And How Can We Use It For A Home Loan?

We know that an apartment is an investment in the life and the Guatemalan banking regulation asks me that at least we have to pay 20% of the total value of the property to qualify for a mortgage loan. FHA comes in to facilitate the acquisition of a home if we do not have enough savings, allowing us to pay from a 5% down payment.

The Federal Housing Administration or FHA is an institution that ensures long-term mortgage loans from financial entities (banks or other approved financial institutions). In other words, in more understandable terms, the FHA works as insurance for the credits of people who need to opt for a down payment of less than 20%.

The Benefits of Acquiring a Home with the FHA are:

   Down payments from 5%

·         Financing up to 30 years

·         Analysis of the ability to pay by the family nucleus.

·         Unemployment insurance

·         Life insurance

·         And more.

What Properties Can We Pay with the FHA?

All the properties authorized by the board of directors of the FHA can enjoy all its benefits.

How Do I Apply for A Home Loan Through The FHA?

Before applying for the mortgage loan to the bank, you need a resolution from the FHA. In this process, the developers will help you with the process.

The application forms found on their website are issued first. After having correctly issued these forms, the FHA performs three different analyzes:

·         Capacity (analyze credit)

·         IVE (full customer analysis)

·      Technical authorization (It is the authorization, which is required when the project inspections have already been conducted. It is directly the FHA with the developer of the property).

Upon completion of the three analyzes, the FHA issues a receipt and sends it directly to the bank. To finalize, the bank will ask you to fill out certain forms. When you have done it, the developer sends a copy of the complete FHA file to the bank and the IVE forms that the bank needs (signed by you).

Now you can continue your normal credit application process directly with the bank.

What is the million-dollar question here? Let us discuss!

Is the FHA Right for Me?

Before making any decision, you should aware of the FHA loan requirements. The FHA can give you benefits if you have an urgency to acquire a property and you cannot pay the minimum down payment that the bank requires of 20%. The 30-year financing option will also help reduce the monthly payment, even if you need to pay a higher interest amount.

Additionally, credit life insurance provides security against any extraordinary circumstance. It covers up to six installments for unjustified job loss, death, or total disability.

 

On the other hand, the interest you will pay will not only be to the bank but the FHA as well. In the long term, you will end up paying much more interest on your home if you obtain a loan through the FHA. So be sure to factor in the additional costs of the application process so that you are not caught off guard.  So, you can put together all your efforts to get a more secure financial plan for getting your home.

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About Author

I am Tammy Martin and I help multiple startups especially on mortgage-related by providing digital marketing services. I believe the right digital marketing strategy can make a huge impact in making a business successful. I have worked on multiple projects in my recent 5 years career as a digital marketing expert. Currently, I am working at TopChoice Mortgage with the collaboration of their digital marketing team.