An FHA loan is a home loan insured by the FHA, Federal Housing Administration. If you are a first time home buyer and have a credit score of 580 or more, then with an FHA loan, you just need to make a down payment as small as 3.5%. However, you need to pay a monthly mortgage insurance premium against the loan, which shields the lender in case borrower defaults.
Unlike conventional mortgages, FHA loans are secured by a government that safeguards the lenders, allowing them to offer potential borrowers more competitive interest rates on traditionally more precarious loans.Since FHA loans are government-backed; they come with easier qualifying criteria, relatively low closing costs and down payment requirements.
You can browse the Internet to get in touch with a reliable FHA-Approved lender if you are looking to secure an FHA loan in San Jose.
Are FHA Loans the Right Choice For You?
While an FHA loan may sound really good, it is not for everybody. Usually, people having a credit score of less than 500 are not qualified for an FHA loan.
Also, borrowers who can pay for a large down payment may better off go with a conformist mortgage solution. This way they can save more money in the long run by way of lower interest rates and mortgage premiums that conventional lenders offer.
In case your requirements are specific or you are looking for an online mortgage in Bay Area, you can check out the different websites and the interest rates they are offering. Also, talking to an FHA advisor can help you better determine whether this type of mortgage is right for you or not.
Today, when it comes to financing their homes, individuals are taking advantage of sweeping advances in mobile technology and electronic banking. The reason for this is more convenience and flexibility. Home buyers choosing the option of online mortgage in San Jose find browsing, researching, comparing interest rates and applying for home loans easier than ever before.
The biggest benefit of choosing online mortgage in Bay Area is the wealth of choices. Rather than flipping through portfolios of the mortgage options banks offer, online mortgage loan buyers have the flexibility to research, refer and compare before making the final decision.
Secondly, you have access to tools like mortgage calculators. Shopping online for the mortgage in San Jose offers a more interactive experience. You can calculate your monthly payment rate projected over a period of 10, 15 or 20 or 30 years to fit your financial plans. The mortgage calculators are specialized for different situations. You can also get real-time updates from the mortgage experts as many online mortgage lenders in Bay Area provide real-time client chat within the website. They are always ready to provide exceptional services to their clients. So you stay connected at all time and keep getting latest updates related to mortgage loan market.
The service of online mortgage in San Jose involves less hassle. You can browse, and select the right mortgage on your own time rather than having to visit a mortgage broker during regular business hours. 5 Star Lending offers you the facility to apply online for mortgage loans. You can get in touch with Cynthia Trinh for more information.