FHA Loans

The Federal Housing Administration (FHA) loan program originated during the Great Depression, when foreclosures are defaults on home loans rose dramatically. In response, the FHA decided to insure loans granted to people with middle to low income, who would otherwise be unable to afford to purchase a home. With the creation of private mortgage insurance (PMI), however, FHA loans have refocused their aim to assist borrowers who are unable to qualify for PMI because they cannot afford a down payment.

If you or someone you love is in the midst of a financial crisis and fears that they may have to remortgage their home, the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A. can help. Call us today at 561-353-2800 to speak with a qualified attorney about your legal options.

Qualifying for an FHA Loan

Because the Federal Housing Administration does not actually grant loans, a borrower must consult various private lenders and ask whether or not they originate FHA loans. If they do, gather their rate and terms information and then continue to contact other private lenders. Comparing information from various lenders can help save you a substantial amount of money.

Once you are satisfied a lender’s rates and terms, they will assess your risk of default by weighing your net income with the mortgage rate of the home. Additionally, lenders may investigate your credit history and current credit score.

Once approved by the FHA, the lender will grant you a loan at a much lower interest rate than they would have had your loan not been insured by the Federal Housing Administration.

Contact Us

If your home is in danger of foreclosure, the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. can help. Contact us today at 561-353-2800 to schedule a free initial consultation.