The Low Down on FHA

FHA insured mortgages are a great option for first time homebuyers who want to take advantage of today’s super low mortgage interest rates but have minimal cash on hand for a down payment.

FHA insured mortgages require a low 3.5% down payment which is helpful to many first time homebuyers. While conventional loans offer comparable loan down payment options, they typically require the borrower to have a higher credit score. With an FHA insured mortgage, borrowers are still required to have good credit, but can qualify with lower credit scores.

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The Mortgage Lending Cycle

Back in the “old” days, if you wanted a home loan you walked into your local bank and completed an application for a mortgage. The Bank used their guidelines and made the decision on your approval. Once approved, the Bank funded your mortgage loan with their own money and kept your mortgage loan on their books. And they accepted your mortgage payments each month until the loan was paid in full.

While this is convenient for the consumer, it wasn’t optimal for banks as they only have so much capital to lend. These days, it’s about OPM – other people’s money…ordinary people’s money.

If that has you bewildered, read on.  




What's Your Rate?

The most frequently asked question by a consumer to a mortgage professional is, “what’s your rate?” After all, it is what we have been conditioned to ask. Look online and you can get an instant quote as well as see published mortgage rates everywhere….but be cautious about mortgage rates advertised for the masses.

Many people don’t realize mortgage companies get their mortgage interest rates and mortgage money from the same place – mortgage backed securities and Wall Street.   


Mortgage interest rates are derived from...  Read more