Financing the Purchase of a Home: FHA-Insured Loans

Published On: September 9, 2009

I'm sure that you have heard, in the news, that it is more difficult to get a mortgage this year, than in the past.  To some extent, that is true.  Since the economic "meltdown" of a year ago, banks and other lending institutions have become more conservative.

What does that mean, for people who would like to buy a home, today?  It means that those who can make a larger down payment and have a stronger credit rating will secure a mortgage more easily than those with smaller down payments and weaker credit ratings.

If you are in the second category, not all is lost.  The Federal Housing Administration (FHA) is still in the mortgage insurance business!  An FHA-insured loan requires a smaller down payment, and is accessible to those whose credit ratings are lower.

To learn more about FHA-insured loans and the application process, I recommend that you read the FHA Tips, at Learn More About FHA Loans.

I have also included an FHA-created widget on both my Warren Township and Watchung Borough webpages.  This widget shows the maximum loan amount that the FHA will insure, for different types of residential buildings, for 5 counties:  Somerset, Morris, Union, Middlesex, and Monmouth.