Mortgage Depot » fha http://www.mrtgdepot.com Everything just about mortgage. Your one stop mortgage information depot. Sat, 17 Dec 2011 09:12:52 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 FHA Mortgage http://www.mrtgdepot.com/fha-mortgage http://www.mrtgdepot.com/fha-mortgage#comments Tue, 26 May 2009 23:13:49 +0000 admin http://www.mrtgdepot.com/?p=9 The FHA Mortgage is a mortgage guaranteed by the Federal Housing Administration (FHA), an agency of the United States government whose purpose is to help less financially-secure citizens purchase their own homes. FHA mortgages are designed for people who might not otherwise be in a position to obtain a mortgage from commercial institutions. Reasons for this might include such things as poor credit history or inability to afford a down payment on the home. The FHA does not issue mortgages directly. It simply issues guarantees to applicants which meet its criteria. The existence of the guarantee enables commercial institutions to offer mortgages to those who might otherwise be regarded as undesirable risk prospects.

Although its criteria for approval are less strict than those of commercial institutions, the FHA does have a set of minimum requirements. Among these are that applicants should be able to pay 3% of the total mortgage price as a down payment, that they are in steady employment, and that the periodic payments on the mortgage will amount to no more than 41% of their total income. The FHA also has a maximum limit on the price of any home for which it is willing to offer a guarantee. These limits vary from one part of the United States to another.

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