San Diego, CA (PRWEB) December 11, 2013
LoanLove.com is a borrower advice website that is “NOT another boring, stuffy, "fall asleep in your chair" site about loans.” As a trusted destination for current news and expert loan advice, the website empowers home owners with first class knowledge, valuable resources and connections to top rated industry professionals. With highly valuable, informative and entertaining articles the Loan Love team’s aim is to help borrowers find loans that they will love. Recently the website has published a number of loan guides that outline the basics of some of the most popular loan types. One of these is an FHA loan guide which can be very helpful for any borrowers who are considering utilizing these types of loans.
The Loan Love article says, “So, you say you want to buy a home but you can only afford a small down payment? If you have good credit (not necessarily perfect), an FHA mortgage could be your ticket to home ownership. An FHA mortgage is a mortgage that’s been guaranteed (i.e., insured) by the Federal Housing Administration. The actual loan is made by a bank or other traditional mortgage lender, but FHA underwriting means the lender won’t be left on the hook if the borrower defaults. It’s easy to see, then, why FHA loans are popular with lenders – there’s a lot less risk. But why are they popular with homeowners?”
Loan Love goes on to explain that some of the main FHA loan benefits include:
These can be some very attractive advantages for first time-home buyers and those with lower incomes, most notably. However, there are some disadvantages to FHA loans, as there are with any type of loan. Loan Love lists the main ones:
Like any loan product, the borrower needs to their homework in order to determine what is best for them. While an FHA mortgage might be the ideal solution for some buyers, if the borrower has good credit and a decent down payment saved, it might be more to their advantage to look at some other loan products that offer lower interest rates or do not require mortgage insurance.
For more information, please visit LoanLove.com.