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 FHA Loans Austin Texas Preferred Professionals |
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| Testimonials “We just finished the purchase of our first home with Stephen Steakley as our Mortgage Banker. Stephen was wonderful to work with. He was always available for any questions we had and his experience was invaluable at getting us the right loan at the best rate! We would highly recommend Stephen to anyone looking to purchase a new home.” Dave & Donna Jenson More Testimonials > |
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 FHA
Loan andFHA Refinance Information
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 Equal Housing Lender Urban Austin Mortgage Cedar Park, Texas |
HOW FHA LOANS WORK
Sometimes understanding how FHA loans work can be a little confusing. At Austin Texas FHA Loans at Urban Austin Mortgage we are here to help you understand how FHA Loans work.
The
Federal Housing Administration (FHA) does not make loans. FHA-approved
lenders, like Austin Texas FHA Loans at Urban Austin Mortgage make the
loans. After loan approval, the federal government does not provide the
funds for the loan but provides insurance for the loan. To promote home
ownership and provide an incentive for concerned lenders, the FHA works
on the borrower's behalf in providing mortgage insurance. This mortgage
insurance will repay the lender if the borrower defaults on the loan.
Lenders are more open to offering loans to individuals who would otherwise be declined a loan based on standard criteria and requirements. There is very little risk to the lender since the government is guaranteeing their principle, leaving only the interest (profit) to be risked and lost.
Since 1934, the Federal Housing Administration (FHA) a government organization, has offered insurance protection against the principle balance of a mortgage loan for those borrowers who would otherwise be unable to obtain residential real estate financing. Over 34 million homes and properties have been insured since the program was created.
With an FHA loan you pay 2.25 (this amount varies from time to time) percent of the loan amount at closing in addition to a monthly fee. This premium provides insurance for the life of the loan and can be financed. If you sell or refinance an FHA loan, you may be entitled to a refund. FHA loans require that all homebuyers establish an escrow account for FHA insurance. This is the amount of money you owe directly to FHA to cover the cost for them to insure your loan.
If you have any questions about whether an FHA loan could be right for you, please contact us at 512-577-8898 or fill out Free Quick Rate Quote.
