Depending on the type of mortgage, Informa Research Services, a subsidiary of Informa plc (LSE: INF), recommends the Federal Housing Administration (FHA)-backed loans as a possible source of financing. FHA loans are different from conventional financing, as FHA doesn’t make the loans, but instead offers insurance against default.
Some may ask, what are the advantages? The FHA program was designed to make the home buying process easier and less expensive. Many of the more obvious advantages of choosing FHA include minimal down payment (depending on credit score) and more relaxed qualifying guidelines. In recent months, however, FHA guidelines have changed. For information on announced FHA policy changes, refer to the U.S. Department of Housing and Urban Development website at http://www.hud.gov.
An FHA loan could be a very good option for first time homebuyers but this loan type is not limited to first timers. Anyone who meets the criteria could possibly qualify, as long as they do not already have an FHA-insured loan at the time.
The fastest and easiest way to find the lowest FHA rates available in your area is to refer to sites such as http://www.realtytrac.com/finance/ that present multiple lenders and their FHA rates on a table with sorted columns.
With this in mind, all consumers should check out online rate tables to find the lowest rates currently available. These tables frequently feature lenders, such as AimLoan.com, who regularly offer rates on popular mortgages that are well below current national averages.