West Virginia FHA Loans

You might be in want of money or funds in order to pay for a down payment on a house or property in the state of West Virginia, or perhaps suffering from a bad credit report or simply just have many bills to handle an FHA mortgage loan is easily the ideal solution.

FHA loan background

The FHA actually stands for the Federal Housing Administration. This is actually an important section of the Department of Housing and Urban Development that was created in 1934 with the intention of helping the first time home buyers, especially those who belong to the low and middle-income families. Most of the bank establishments and mortgage lending companies in the state of West Virginia have the outlets that would enable you to apply for a mortgage loan that is backed by the West Virginia Federal Housing Administration.

All West Virginia lenders do not have to think about the possibility of losing their money in the FHA loans because they are fully backed up and supported by the government. This assurance enables the banks and mortgage groups to provide competitive interest rates on such mortgage loans, which then make it a lot easier to apply and qualify than the conventional home loans.

It might be true that the Federal Housing Administration mortgage loans are no longer utilized as much as they have been at some point. With a FHA mortgage loan, you are imposed a limit on which how much you are allowed to borrow. Another problem you might encounter with an FHA loan is that it is often sidestepped by the mortgage lending companies and loan brokers, who are only too eager to push home buyers to go for much more expensive alternatives such as the optional sub-prime and ARM loans, because with such loans, brokers are paid a higher commission.

But then, if you are a bona fide first time home buyer who is interested in purchasing a house in the state of West Virginia, then you are justified to stop the broker's pitch and tell him that you are not interested in any other loan except an FHA loan.

Benefits of West Virginia FHA Loans

There can be many ways a home buyer would benefit when taking out a West Virginia FHA loan. One important benefit is that you are not required to put up a sizeable amount of down payment. Likewise, you can ask for the assistance of your lender with regards to the amount of down payment that you need to have. It is actually a very small amount. FHA mortgage loans require only around 3.5% down payment, which means that your down payment for every one thousand dollars that you borrow will be 3 dollars.

If you still cannot secure this amount of money for down payment, then you can try getting it as form of a gift from a relative, friend or a donating group.

What are Down Payment Assistance Programs

The Federal Housing Administration works actively with many down payment assistance programs are the DAP programs. Such programs assist potential home buyers in acquiring money for down payment in exchange for practically nothing. It is best to ask your West Virginia lender for more information in DAP.

On the other hand, when applying for the normal home loan, the down payment assistance program is not available. The usual types of home loans require you to provide the down payment yourself, and must prove that the money you produce came out of your own pocket. The reason for this is that the lenders need the assurance that you are really going to be a responsible borrower and will not be backing out of the process at the last minute.

FHA Loans and Credit Ratings

Federal Housing Administration loans are likewise appropriate for the prospective loan borrowers who possess a weak credit history. In fact, the Federal Housing Administration does not really pay attention nor give importance to a borrower's credit rating.

Therefore, if you are having debt problems, then West Virginia FHA loans might be the solution for you. The ratio of debt to income that is used to determine home loans is quite considerably higher when it comes to FHA loans.