A Word about FHA Mortgage Loan

FHA has insured about 34 million mortgage loans since it came into existence in 1934. FHA Mortgage Loan is essentially characterized by low mortgage rates.

Expensive homes can be afforded in instances of going for single family homes owing to the measly down payment rate of three percent only compared to the conventional mortgage rate of ten to fifteen percent. Home buyers can expect to get their closing costs financed as well as get mortgage insurance.

The total housing cost should not exceed twenty nine percent of the net monthly income at any cost. This essentially implies that if the yearly household income comes to sixty thousand dollars, the housing costs inclusive of sum, interest, property tax and insurance should not be more than 17400 dollars a year.