At Liberty Lending Consultants, we offer FHA loans with competitive rates. Unless you have a background in finance, banking, or lending, you may not know exactly what FHA loans are. There are many types of loans with specifications that appeal to different borrowers.
FHA stands for Federal Housing Administration. The FHA is a governmental agency that facilitates financial support within the mortgage market, as well as improve housing standards and conditions. If the borrower for some reason is not able to pay back the loan and defaults on the mortgage, the Federal Housing Administration will protect the lender from some of the financial damage. This way lenders are able to give out loans to those who may not have qualified normally. FHA loans provide more access to housing to a wider population of people. These loans were designed in 1934 to help stimulate the housing industry.
FHA loans are beneficial to a number of people. First-time homeowners are a primary target for these loans because oftentimes they are young couples that haven’t saved up enough for down payments or established a good credit score yet. Borrowers are allowed to have credit scores as low as 500 depending on the specific loan. People who have suffered from financial issues in the past often take advantage of FHA loans as well. While each person is evaluated on a case by case basis, many people who have suffered a foreclosure, bankruptcy or a major hit on their credit score are still able to receive an FHA loan. Basically, just about any reliable borrower, seriously looking to enter the housing market is a good candidate because FHA loans are there to help and support.
Liberty Lending is proud to be an FHA loan lender in St. Louis, Missouri because we know that past mistakes or just lack of experience should not automatically disqualify people from housing. While the specific benefits and rates vary from lender to lender, we do our best to stay competitive. Some benefits of getting an FHA loan with us include getting to have a cosigner, 3.5% down, fixed rates for either 30 or 15 years, and the closing costs getting included in the loan amount potentially. To find out more, contact us here.