The article also shows some of the downsides of FHA backed loans.
Seattle, Washington (PRWEB) July 07, 2013
The Federal Housing Administration is part of HUD, and, in their latest article, Rate State shows how this government program can help people secure the home loan they have been trying for. Rate State hopes that by releasing this latest article, people will better understand the advantages and disadvantages of these types of loans.
The article gives an excellent overview of FHA program: “The FHA provides mortgage insurance on loans provided by FHA approved lending institutions. The growing popularity of FHA backed loans has emerged from tightened lending requirements by many institutions in recent years. This has made the FHA loans a haven for individuals that cannot meet the credit score or down payment requirements of standard lending institutions.”
The article also shows some of the downsides of FHA backed loans. Rate State does not recommend FHA loans to everyone because they are not meant for those who can get regular loans. Over the long run, these FHA loans actually cost more to the borrower; this extra cost funds the insurance that covers the increased risk of default.
In addition to providing excellent articles about many mortgage topics, Rate State also provides a budgeting tool and a loan search tool freely and without obligation.
Rate State helps consumers compare today’s mortgage rates through their online comparison tool to ensure they are getting the best rate for their home mortgage or refinance before making their next purchase. They provide consumers with access to the information they need in order to make a decision potentially saving thousands of dollars over the term of their next home loan.