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Did you know?

Did you know?

Did you know that when Congress created the Federal Housing Administration (FHA) in 1934, the housing industry was severely weakened:
* Two million construction workers had lost their jobs

* Many homebuyers were unable to meet the terms of their mortgage.

* Mortgage loan terms were limited to 50% down payment (WHAT?) with repayment terms of 3-5 years and ended with a balloon payment!

* America was primarily a nation of renters.  Only four in ten thousand households owned homes! 40%!

FHA – insured mortgages provided the homebuyer with an AMORITIZED LOAN, one in which the monthly payment consisted of an interest payment and principal reduction payment.  At the end of the term of the loan, the balance would be PAID. In FULL. No balloon!   These loans worked well due to a  stable economy that created little upward or downward movement in the interest rates of the mortgage market.

By comparison, FHA today, allows for 3.5% down payment (not 50%!) and 30 year terms/ adjustable rate terms, lower credit score qualifying.   64.8% of Americans are homeowners in 2014 (US Census report 7/14)

It is easier than you think to qualify for a new home loan- apply today! www.fcfs.net 

HUD HISTORICAL BACKGROUND – www.hud.gov/offices/adm/admguide/history.cfm

Categories: arizona mortgages
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