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A HUD mortgage is a home loan sponsored by the government, specifically the Department of Housing and Urban Development. Many first-time buyers qualify for this type of borrowing, even if they do not quality to work with traditional lenders. To learn more about HUD mortgages, read on.
What
Makes Them Different?
The FHA, or Federal Housing Authority, insures HUD home loans, which
means that lenders feel more secure working with buyers who would not
be able to obtain a mortgage under other circumstances.
Beyond that, the restrictions, limitations, and package offerings can
be hard to beat, especially for first-time buyers and borrowers with a
minimal (or poor) credit history.
Minimal
Qualifications
Poor
Credit is Okay:
Even if you have a past bankruptcy, history of late payments, or other
negatives impacting your credit score, you are likely to qualify
through the office of Housing and Urban Development.
Small
Down Payments Accepted:
For as little as 3% down, you can buy property. That is
almost unheard of among traditional banks. You can even use
money from charitable organizations, your employer, or family to
finance your down payment.
Other
Benefits
Own
and Improve: With a
mortgage through the FHA, you can bundle your purchasing costs in with
the money you will need to repair or improve your new house, townhouse,
or condo. This way, you only have one, primary mortgage and
can begin making the changes you desire right away.
Keep
Your Home: In a
time when so many individuals and families are facing foreclosure and
potentially, homelessness, the FHA will help you keep the home that you
buy through HUD. If you ever get in over your head, they will
help you find local, state, and federal resources that will help keep
you in your house.
Enjoy
Competitive Rates:
The loans given out through the Federal Housing Authority tend to have
interest rates that fairly compare to those signed by other lending
institutions. Because they are government-sponsored, they can
sometimes offer even better rates than others.
Before
You Buy
Before agreeing to any borrowing, or deciding to purchase the home of
your dreams, it is important to research not only the property you are
considering but also the mortgage you will be paying. Request
quotes from several banks and Housing and Urban Development,
too. Then you can compare terms, rates, conditions, and other
factors to determine the best financing situation for yourself or your
family. We want you to be happy and secure in your house and
in your lender for a long time to come.
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