An FHA loan comes as a relief for those who think it is impossible to get a loan, especially after the house-bubble burst. Many people have been discouraged when thinking of purchasing a property, maybe because their financial situation has changed considerably in the last few years. FHA loans are insured by the Federal Housing Administration, and if the borrower defaults they are protected by this, because of the mortgage insurance that is required.
There is a lot of information that is still unknown to the average borrower regarding FHA loans. The following article goes over seven crucial facts that one must know before embarking on the FHA loan process. It is imperative to do as much research as possible before purchasing a home, and even though it may seem a little boring, you should know why certain things are required by the lender.