For those of you that follow my column in the Denver Post you know that I tout FHA loans all the time particularly for first time home buyers.
Here is some good information about how FHA loans are becoming more and more popular.
“Federal Housing Administration loans can be a very good deal for home buyers, especially those who donâ€™t have a lot of cash or whose credit rating isnâ€™t stellar, experts say.
FHA loans now account for 20 percent of new mortgages, up from 3 percent in 2006. What’s more, the number of authorized FHA lenders has increased 500 percent in two years.
Other benefits of FHA loans include easy loan modifications for borrowers who fall behind, easy refinancing plans if rates decline, and low rates overall, which donâ€™t rise if the borrower has a low credit score. There are no income restrictions on FHA loans, so even borrowers with good incomes may find them attractive.
FHA loans still require a pre-settlement inspection of the home, but the process isnâ€™t nearly as arduous as it once was, says George Hanzimanolis, past president of the National Association of Mortgage Brokers.”