The 1970’s are back in terms of Federal Housing Administration (FHA) back loans thanks to the zeal and greed of subprime lending and the bionic lifestyle (faster, stronger, better) of the American people. Faster than Steve Austin can run a marathon, Americans wanted things now and they wanted them big. A few years ago, some lenders were more than happy to feed this addiction until…well, you know the story.

Today we’re seeing the past repeat itself, but this time it’s actually a good thing. After recently speaking with a seasoned homeowner, you could see how what’s old is now new again. The former Michigander says, “When my husband and I bought a home in the late 1960’s, early ‘70’s we were biting our nails, worried about getting a loan. We put half down; had nearly perfect credit and we both drew decent salaries. However, back then you didn’t automatically qualify for a loan and you needed to take the necessary steps to secure one.” She adds that she and her husband received a loan, but it was only after a rigorous process.

And that is the scenario many Americans are dealing with now on the heels of drive-through mortgages. In this stressful environment, Americans may have forgotten an old friend that many depended upon years ago—our old pal the FHA insured mortgage.

For many people, being able to secure a home with a 20% down payment simply isn’t a reality. They may have decent jobs and “okay” credit, but haven’t saved the kind of money needed to own a home. That’s why the FHA backed loan program is so important. The Federal Housing Administration (FHA) created a loan “insurance” program that supports borrowers in their quest for home ownership.

Certain FHA approved lenders, like AmeriFirst, are qualified to accept, process, underwrite and close loan applications that are supported by FHA insurance. This program is ideal for:

• Borrowers who have a down payment of less than 20%.
• Those who have suffered bankruptcy or foreclosure can apply for an FHA backed loan two to three years later.
• Lower credit score than what is required to qualify for a conventional loan.
• First time home buyers.

For more information about how AmeriFirst can assist you with an FHA mortgage call us today at 800-466-5626 or complete our easy online application form.

FHA Mortgage Limits from About.com

Reasons Homeowners Love FHA Loans from About.com