Question:

Should I consider FHA mortgage financing?

Answer:

FHA mortgage financing is again considered to go back to where it belongs - as a cornerstone of homeownership in the US. With thousands of pending foreclosures and more than 45, 000 cases of mortgage fraud in 2007, which is twice as the recorded fraud cases for the previous two years, people are once again turning to FHA for help, for mortgage financing or refinancing.

In an urge to assist borrowers and lenders, FHA is undergoing changes and the word is FHA loan limits are expected to go over $700,000 in some cases. However, this has not yet happened, and FHA loan limits for 2008 remain the same as FHA loan limits in 2007.

You should certainly consider FHA mortgage financing if you are first time homeowner, if your income is low to average, if you are a senior over 62, or you need to refinance out of a subprime killing ARM adjusted rate.

To avoid predatory lending happening to you, consider doing a background check on your lender / broker. If you are doing an FHA mortgage financing, they have to be identified as FHA approved lenders / brokers. Even if you do not exactly qualify for a certain FHA loan, they will most probably have another product that will suit your needs.

Also, when you seek FHA mortgage financing, do not seek to buy the house of your dreams - firstly, you may not be eligible, and, secondly, homeownership may be safer to begin with a starter home, not with a luxurious residence. Especially if your income really does not qualify for a large loan, do not seek a lender who will borrow you money you can't pay back.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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