Foreclosure is one of the largest and most talked about problems in the country today. The good news for some homeowners struggling to make payments is that FHA loans may be able to help. FHA, or the Federal Housing Association, has been designed to provide additional help to people looking to obtain a home loan, but that may not have the ideal background for doing so. Throughout the time the FHA has been operating, the foundation has helped secure successful home loans for millions of people. Now, with the foreclosure crisis in full swing, there may not be any better time to turn to FHA for help.
How Can FHA Help?
Those who are struggling to make payments on their homes should contact their lender first and foremost. What you don’t want to do is to fall so far behind on your monthly payments that you will lose the home to foreclosure. As soon as you begin struggling, contact an FHA approved lender.
Talk to them about the problem. One of the most common problems right now has to do with those homeowners in adjustable rate mortgages. While they could afford their monthly payment before, once their loan adjusted and therefore increased in the amount due, it became too difficult to make payments. In this situation, a FHA loan may be exactly what’s needed.
These loans are given to those who don’t have the most ideal credit history. You can refinance your adjustable rate mortgage into a new FHA loan. In doing so, you may secure a lower interest rate, a lower monthly payment and better terms suited for your particular needs.
There are also programs in place currently to help homeowners who are struggling and perhaps have missed a few payments. FHA loans are being offered to those who are at risk for losing their homes to foreclosure. Therefore, even if you are missing payments, contact the FHA as soon as possible for help.
What You’ll See
When you refinance into an FHA loan, you’ll see massive improvements quickly. First, FHA loans are federally insured loans, which immediately help more people qualify for lower interest rates. That lower rate means more affordable monthly payments. In addition, current rules have been stretched so that more homeowners struggling with payments can be helped. Larger loan limits are allowed and more people are able to qualify today than just a few years ago.
How to Get Help
If you are struggling to make monthly payments, contact an FHA approved lender today. Talk with them about your unique circumstances and your goals in refinancing your loan with them. They’ll work with you and give you some options. Best of all, they’ll give you peace of mind.