Monday, 23 July 2012

FHA Loans Nevada a College Graduate's Best Friend

By Karen Carter


The American dream is still alive and well, despite a recent economic downturn that is leaving many potential home buyers to consider other options. This does not have to be the case; there are many affordable FHA loans in Nevada out there, which can help to get the dream back on track.

However, FHA does not provide any loans to the borrowers. On the contrary, the loans are insured by the FHA under which borrowers can obtain mortgage loans from any FHA-approved lender at competitive rates.

Benefits of FHA insured mortgage loans: These loans are particularly beneficial to the borrowers. As the loans are FHA insured, lenders find it convenient to reduce mortgage rates over these loans. FHA insured mortgage loans are offered as 30-year fixed term mortgage loans or adjustable rate mortgage (ARM) loans. In case of ARM loans, FHA generally considers 1-year constant maturity index while rescheduling the interest rates. Also, FHA insured mortgage loans have other advantages such as low down payment, low origination fees, zero prepayment penalties, mortgage insurance and providing financial assistance during closing. The usual down payment on these loans is 3 percent.

Eligibility Criteria: In conventional mortgage loans, loans are available with lower down payment but are offered at higher mortgage rates. FHA insured mortgage loans are particularly beneficial to those who are first time buyers but do not have finances to make large down payments. However, there are certain criteria that need to be fulfilled in order to be eligible for these loans. The applicant should have a good credit history and a stable income.

It is important to take a quick glance at the Nevada FHA loan limitations: in basic terms, for one family: 362,000. Two families: 460,000 and four families: 700,000 and so on. The Nevada cities with the best rates are: Las Vegas, Reno, Paradise, Winchester and Sparks, just to name a few. Nevada has extremely low rates compared to California and many others. Banks may soon begin to raise the rates in Nevada, so it makes sense to jump on the opportunity now to discover the lowest terms.




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