FHA loans have been assisting people become proud homeowners since 1934. These loans are mortgage loans insured by the Federal Housing Administration. They are popular, mainly for the first-time home buyers because the requirements are less strict than conventional loans. They were created in response to the sudden increase of foreclosures and defaults that happened in 1930s. to offer mortgage lenders with sufficient insurance and help stimulate the housing market by making loans accessible for individuals with less than stellar credit score or a low down payment.
Your mortgage broker in San Jose CA can offer you a better deal on FHA loans in San Jose because the eligibility for these loans is not astringent. These loans offer low down payments, low closing costs and easy credit qualifying. FHA loans are ideal for first time home buyers as it offers down payment as low as 3.5% of the purchase price. You can get this loan by taking help of a mortgage lender who is approved by the Federal Housing Authority. You can take help of online resources to locate a lender who will help you in getting a better deal on a FHA loan.