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Government Approved Mortgage Loans
What kinds of government approved mortgage loan programs are
available for the lender today? There are actually more programs
available today than any other time in recorded mortgage
history; and the ability to qualify for these programs is an
all-time high. In this article were going to take a look at FHA,
VA, Fannie Mae, Freddie Mac, the HECM, and the SNAP programs
available thanks to government regulation of funding.
And FHA mortgage is the term used to describe a direct primary
market lending product. What are FHA loans and how do you apply?
Your options for application now are through an approved lender,
or via the Internet. FHA, or the Federal Housing Authority was
established in 1934 as a part of Franklin D. Roosevelt's "New
Deal". It was the president's plan to help the country get back
on its feet at the end of the Great Depression. FHA loans with a
way to provide the funds needed to construct low income housing
and provide Americans with the dream of home ownership. It
worked, tremendously well and in 1965, the FHA became a part of
the Department of Housing and Urban Development. In the decade
since its inception, the FHA has become the largest insurer of
home mortgages and has allowed more Americans to live the dream
of home ownership at a rate that is in comparable to that of any
other country.
The VA loan is simply a spin-off of the FHA loan open only to
veterans having served in the Armed Forces. The VA loan was
conceived in order to provide returning veterans with the
opportunity to purchase homes and start their lives again.
Fannie Mae, or the Federal National Mortgage Association, was
established to provide a secondary market for the FHA mortgage
loans. In 1938, when President Roosevelt established the Federal
National Mortgage Association it was intended to provide a
secondary market for lenders to sell mortgages in order to
originate new ones. Freddie Mac, followed in a few years, and
was implemented to serve a broader base of mortgages. Although
Fannie Mae and Freddie Mac are not direct lenders, our current
mortgage system would not be in operation nor would we have
experienced the success with homeownership we enjoy today.
The home equity conversion mortgage or HECM is a HUD supervised
program that works with FHA homeowners who are over the age of
62 to remain in their homes by allowing them to access their
home's equity, sometimes referred to as the reverse mortgage.
The safe neighborhood action plan or SNAP is an FHA supervised
effort to improve urban communities. The problem focuses own
illuminating drug abuse and cry him in urban areas by providing
education, school activities, and assistance for project
residents.
Now that we've covered all the government approved mortgage loan
programs, let's take a look at the FHA mortgage options
available. FHA offers adjustable rate mortgages, fixed rate
mortgages, energy-efficient mortgages, graduated payment
mortgages, mortgages for condominium units and growing equity
mortgages. The more commonly used mortgage products by the
individual residential homeowner are the adjustable rate
mortgage the fixed rate mortgage and the energy-efficient
mortgages. As we move closer to a more energy efficient energy
conscious nation, I believe we will see an increase in the
energy-efficient mortgages at a greater concern on the part of
HUD that will make room for an increase in energy-efficient
mortgages. The graduated payment mortgage is an option for FHA
homeowners who currently have low to moderate incomes but
expected to increase substantially over the next few years; this
can be compared to a balloon note or the adjustable rate
mortgages in use today.
As you can see, the government has played a tremendous role in
making possible the dream of homeownership in this country. Yes,
I believe we can say today more Americans live the dream of home
ownership than any other nation in the world thanks in great
part to the fact that President Roosevelt stepped in at the end
of the Great Depression and provided a way to restore faith in
the American way of life.
About the author:
Tony Robinson is a Real Estate Investor, Webmaster and
International Author. Visit http://www.ezy-mortgage.com/ for his
tips on mortgages.
Tony Robinson
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