When many people think of an FHA home loan they assume that these are loans that are for people who can't afford a nice home, but that isn't true. Did you know that there have been more than 30 million homes purchased with these loans? Did you also know that some of the homes that have been purchased with these loans are valued at more than $700,000? There is a lot of misinformation out there about these loans, and because of this misinformation, many people do not take advantage of them and they end up paying more for their loan than they need to.

FHA Doesn't Mean Shabby

Many people think that if they acquire an FHA home loan that they have to buy some shabby home in the middle of a bad neighborhood, but this isn't the case whatsoever. Chances are some of your neighbors in your current neighborhood have one of these loans; in fact, some of the nicer houses in your area may have been purchased with these loans! Would you have ever guessed?

To buy a home with an FHA home loan the home actually has to meet certain standards. The house cannot have problems with the roof, with the foundation, with the heating and cooling systems, and things of that nature that take away from the value of the home. In fact, the house has to be in good condition to be considered for this type of financing. So, a home purchased with one of these loans is more likely to be beautiful rather than shabby!

Just about any home can be purchased with an FHA insured loan. This type of loan generally doesn't limit the type of home that you can buy; instead it limits the costs that you will incur when you buy the home. Instead of having to put down as much as 20 percent on a home as a down payment, you will need to put down three to five percent on the home. Instead of having unlimited closing costs, there are limits as to what you can be charged. In addition, there will also be programs available to you that will provide you assistance in paying for the down payment and closings costs!

While many people assume that an FHA secured loan means that they cannot buy the house of their dream others are going out and buying them. Don't assume that what you have heard or have thought about these loans is true. These loans have helped millions of people buy homes very affordably, and chances are you could be one of the millions more that will benefit from this loan program that is more than 70 years old!

While there are requirements and limitations as far as price goes with these loans, you will generally find that if you qualify, any house that you want could be yours because the limits are so high. The limits are based on where you live, so chances are the home that you have been eyeing up could be yours, for less than you might thing, when you apply for and are accepted for one of these loans! This is a very affordable option for a lot of consumers, making it worth the time and effort to look into this often misunderstood type of home loan!

By : IC