|
FHA is a
very popular route for the first time homebuyer to take. It is
not a program reserved only for first time home buyers. You can
buy your third or fourth home with an FHA loan. The only
stipulation is that you may only have one FHA loan at a time.
The
Federal Housing Administration (FHA), a wholly owned government
corporation, was established under the National Housing Act of
1934 to improve housing standards and conditions. It's goal was
to provide an adequate home financing system through insurance
of mortgages, and to stabilize the mortgage market.
Thanks to
the insurance products FHA helped to pioneer, such as the long
term amortizing loan, the nation's home ownership rate has
soared to an all time high of 66 percent as of the third quarter
of 1997; well on the way towards the goal of 67.5% by the year
2000.
Today, FHA
plays a critical role in financing for minority borrowers, first
time home buyers, borrowers who have troubled credit history,
and borrowers who have little money to put down on a home.
-
In
Fiscal Year 1997, 76 percent of FHA loans originated were
first-time home buyers compared to 68.3 percent in Fiscal
Year 1995 and 72.7 percent in Fiscal Year 1996.
-
Loan
origination's for minority home buyers are increasing. The
result is 29% of new homeowners in the past three years.
In keeping
with the Government's reinvention efforts, FHA has been very
ambitious in innovating, automating, and streamlining the
process.
-
Many
Single Family mortgage insurance programs have been
streamlined. For instance, the Section 203(k) purchase and
rehabilitation program has been greatly modified. Lenders,
Realtors, and nonprofit organizations across the country
have received training on how to make the Section 203(k)
program work for them and ultimately for you, the consumer.
-
FHA
has undertaken a demonstration in the area of automated
underwriting before beginning to design its own automated
underwriting tool as automation saves time and it ensures a
more uniform treatment of all applicants.
-
In the
area of Manufactured Housing, FHA has worked with the
industry to ensure that all manufactured homes meet enhanced
safety standards.
-
Finally, FHA is using the Internet in its business
processes. FHA lenders can now submit information concerning
their insurance endorsements electronically to a secured
world wide web site called the FHA Connection. FHA
homeowners can also access information regarding mortgage
insurance premium refunds on the HUD/FHA home page.
|
