The Federal House Administration has overseen a loan program that has opened figurative and literal doors for millions of Americans ever since 1934. FHA loans give residents the opportunity to own a home they would not usually be able to obtain through the traditional lending outlets.
How a FHA Home Loan From Kloze Turns Your Dream of Home Ownership into Reality
Here at Kloze, we offer FHA loans in order to support potential and current homeowners. We know for some people it’s difficult to find that financial stability needed in order to be able to afford a home. We have a highly talented team of mortgage specialists and customer service representatives who are prepared to guide our valued clients through the entire mortgage process. This includes the application and even servicing of the FHA loan too. We never leave you on the sidelines or withhold information from you when it comes to making choices for your financial future.
When it comes to FHA loans from Kloze, we hold ourselves to a higher standard than our competition. We won’t try to feed you convoluted messages or use gimmicks to get your attention. We firmly believe in being straight forward with our clients and providing as much information as possible on clear terms. Once you have all the information you need in order to make an informed decision about the type of loan you wish to have. You will understand why Kloze is one of the best mortgage lending services in the business.
We can’t take all the credit though. Our knowledgeable and dedicated staff are a big part of our mortgage team too. We have a wide range of products available to cater to the needs of our customers. FHA loans are only one of the many products we have tucked away in our portfolio. Other products we have to offer are conventional mortgage rate loans, fixed rate loans, and adjustable rate loans. We also have specialty products like the Veterans affairs loans among others.
The wide scope and experience we have in the lending marketplace. Means you can have confidence in Kloze as a lender to help you develop a better understanding of the lending marketplace. As a client, this means it translates into multiple mortgage solutions and competitive pricing. Your business matters to us greatly, and we want to make sure you get the best service imaginable.
Vital Information about FHA Loan Mortgage Rates
You may be asking what an FHA loan is at this point. How does a FHA loan differ from a typical mortgage loan? Well, FHA loans are actually private mortgage loans that are insured by the federal government. The federal insurance means lenders can offer financing to low and moderate income Americans who may not have the option of qualifying for a mortgage loan. The reason for this is because the risk is taken away from the lender in the event of a default. The government is the one who repays the lender.
FHA loans are an excellent way of being able to clear one of the biggest obstacles of home ownership, access to proper financing, it can help you with other aspects of the mortgage too you may not have considered before. The majority of home purchases require a 20% down payment on the home. Even for a property that is inexpensive, this can mean anywhere from thousands, to even tens of thousands, of dollars paid out of pocket. For many Americans, paying this amount of money is just not possible.
On top of the fact the borrower is put at considerable risk as well. In order to put a down payment on a home, they have to tie up the majority of their savings into the home. FHA loans on the other hand don’t ask for such a large down payment. Only that 3.5% is put up as down payment. As you can imagine, this means driving down the upfront costs for a borrower significantly. So they’re not put at so much risk when looking into owning a home.
Upfront cots can also be further mitigated when it comes to the reduction of closing costs too. FHA loans help with reducing the closing costs in two ways. One, they allow either the lender, seller, or builder to pay for the closing costs on the home. The arrangement can benefit these parties by helping to facilitate the sale of the home. On the other hand, the FHA loan lets the borrower fold the closing costs into the mortgage amount. This spreads the cost out over a long length of time. Regardless, it takes away the burden of having to pay a couple thousand dollars out of pocket for your new home.
Applicants for FHA loans have to demonstrate a steady employment history. This means being with the same employer for at least two years. They must also meet the minimum credit score requirements too. Along with the total monthly mortgage payment not exceeding 31% of the gross income earned. The home an applicant is planning to purchase must be a primary residence as well. This means the property can not be flipped to a rental property.
There are a few requirements in order to qualify for a FHA loan. However, once you are through with the application process. You can reap the benefits of finally being able to own a home.