Your Lake of the Ozarks Mortgage Lender: The Role of the Federal Housing Administration

Thursday, March 22, 2018

The Role of the Federal Housing Administration

The Federal Housing Administration, or FHA, is a United States government agency created in part by the National Housing Act of 1934. The agency provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. Keep reading to learn more about the FHA, its role in our country and FHA loans from your favorite Lake of the Ozarks mortgage lender.

The Role of the FHA

The FHA was designed by Congress to help facilitate growth in mortgage loan opportunities after the Great Depression created tough economic conditions and caused the housing industry to struggle. In 1934, only 4 in 10 homes were owned by their occupants. Due to many people being out of work, coming up with a large down payment posed a big problem. Renting was a more viable option for many Americans at that time. The underlying idea was that by providing insurance to lenders, more potential home buyers would qualify for mortgages. The FHA is not a mortgage lender. Its primary role is to insure mortgages provided to home buyers by FHA-approved mortgage lenders. These loans generally serve as an alternative for borrowers that are unable to meet the 20% down payment requirements of conventional loans.

FHA Loans Benefit Everyone

FHA mortgages benefit everyone! Borrowers benefit by having access to home financing that's otherwise not available. FHA-approved mortgage lenders at the Lake of the Ozarks benefit because they can take on more risky borrowers with less of a down payment because of the FHA mortgage insurance premiums that the buyers pay. The housing market and economy benefit as well because of the increased volume of available home buyers.

FHA Loans from First State Bank

FHA loans offer competitively-priced rates and a low down payment option. Whether you're looking to purchase a new home at the Lake of the Ozarks or refinance your current loan, FHA is a great option. The benefits of an FHA loan with us include:

Flexible credit and underwriting standards
Low closing costs
Fixed and adjustable-rate mortgages available
Down payments as low as 3.5% of the sales price
Competitive rates on new home purchases and refinances
In-house processing and underwriting

For more information on FHA loans or any other type of home financing at the Lake of the Ozarks, give us a call at 573-746-7211. As your Lake of the Ozarks mortgage professional, I'll discuss your options, offer competitive interest rates and back it up with the first-class service you deserve. We are opening the doors to your Lake home!

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