If you have less than perfect credit, you can still buy a home
In order to give you a better picture of the FHA loan market, we’ll begin by examining why they are so popular right now with homebuyers. The recent economic collapse hit most of us very hard. Many of us were left underwater on our homes, and close to all of us had little choice but to amass exorbitant amounts of credit card debt to make due on a day-to-day basis. As you have probably heard by now, the primary reason for the collapse that left you so financially vulnerable was the explosion of the subprime mortgage market. Banks got greedy due to the bull market we were experiencing in the housing industry for so long. They began investing in toxic assets, agreeing to loan out hundreds of thousands of dollars to clients who simply weren’t qualified. Once the market for subprime mortgages fell flat, many people were left wondering how people with less than perfect credit were going to buy homes. The answer is an FHA loan.
Why an FHA Loan might be right for you
Underwater mortgages and high levels of credit card debt weren’t the only two consequences of the recession. If you’re like most people, you saw your credit score plummet from about 2008 on. Unfortunately, that couldn’t have happened at a worse time. Considering that the subprime mortgage debacle occurred as a consequence of entrusting too much money that didn’t have the credit scores to qualify, banks are more weary than ever of your financial history and the potential for return on their investment. That’s enough bad news. Heres the good news.
There was a clear void left by the subprime market evaporating. Specifically, it left people with poor credit seemingly without a means of getting approved for a mortgage. Luckily for you, the government has a vested interest in moving property from one person to the other as much as possible. As a result, the Federal Housing Administration is ready and willing to back loans for people with bad credit. The silver lining in all of this is that you have the opportunity to have the government step in and vouch for you, leaving you much more likely to obtain the size of the loan you were interested in from the start. Would you believe it gets better? An FHA loan will actually fetch you an interest rate thats typically around 3% less than you would have had to pay under the subprime system.
If you’re looking to buy a home, an FHA Loan may be the key
There’s a serious buyer market out there right now. Chances are, if you don’t already own a home, you are seriously interested in making the investment. You don’t have to spend years getting your credit back in order. An FHA Loan can be that little boost you’ve been looking for to go ahead and take that big step. If youre still not sure if an FHA Loan would be right for you, contact us at Florida Mortgage Choice today. We have a significant amount of experience with these loans and we can make sure well get you the lowest interest rate possible. Now is the time to act. Call us today!