Georgia FHA Loans

The reemergence of FHA home loans has meant that borrowers have one more tool to get reduced interest rates and increase your chances of qualifying for a mortgage loan.  Georgia FHA loans are even extended to single parent and first time buyer households.  You can use your FHA home loan to purchase a home, refinance a loan, or remodel and make improvements to a property that you are already living in.  With that in mind, let's discuss some of the benefits of Georgia FHA loans.

Georgia FHA Benefits

Some people have trouble meeting the requirements of a traditional mortgage loan.  These people should consider a Georgia FHA loan, because FHA loan requirements are not as strict.  This is because the FHA will guarantee a certain percentage of the loan.  This means that if you default on the loan, the lender will still be paid their money back.  So let's say a house goes into foreclosure, at that time, the percentage of the guarantee will be paid to the lender.  Thus, the lender has little to nothing to lose when offering you a mortgage loan, if you choose an FHA loan.

Credit Requirements for a Georgia FHA Loan

Your credit score does not have to be outstanding to refinance with a Georgia FHA loan.  There are certain standards that are required for sure, but they are more relaxed because you have the loan guaranteed by FHA.  This will alleviate the overall risk of the loan and enable qualifying with a less than adequate credit score.

Sometimes loans are hard to get when purchasing a new home because the down payment can't be met.  For instance, a traditional lender will usually ask for 20% of the loan balance as a down payment.  FHA loans are different.  The standard for an FHA loan is 3% of the loan for down payment. 

Can't come up with 3%?  Many times Georgia FHA loans will allow you to be gifted that 3%.  While traditional mortgage loans will not allow you to borrow the down payment from a friend or relative, or use a down payment gift program, FHA loans oftentimes will.  If you are refinancing, you'll be able to leverage even a small amount of equity in your home to secure a reasonable loan.

There are times when you can lower your interest rates by refinancing your mortgage with an FHA loan.  This is because you may be able to reduce the interest rates because of the risk that is assumed by the FHA.  Since risk is reduced, prime rates and subprime rates can be offered to the borrower.

Another area where Georgia FHA loans excel is when you face an emergency or crisis.  A traditional lender is only there to grant you a mortgage loan, and the rest of the responsibility falls on your shoulders.  If you fall into trouble, you have no one there to help you.  With an FHA loan, there are certain programs that have been designed to help people through hardships. If you're having trouble making your payments, or are close to the point of default thing or for closing on your home, you can contact the FHA for help and guidance.  They will guide you through appropriate program to help you retain ownership of your home as you face a financial crisis.

malcapmortgage.com proudly serves: Atlanta, Columbus, Savannah, Athens and Macon in addition to many other Georgia cities.