The Federal Housing Administration (FHA) helps buyers find a mortgage loan to purchase a home. The mortgage is backed by the housing administration, who also makes it easier for the borrower to quality for the loan. Lenders are willing to give the money to the buyer because the loan is backed and guaranteed by the FHA. Even though this help is available to those who qualify, not everyone knows how to get an FHA loan to buy a home.

FHA home loans are sought after by a lot of borrowers because of the guarantee of the loan and the amount of money the lender will give. The FHA loan guidelines make it easy for almost anyone to get a mortgage loan. If you have a favorable credit rating and a steady income that will allow you to make monthly payments, you will probably qualify for a loan.

There are several different types of loans that you can get.

• Mortgage loans
• Home repair loans
• Home weather-proofing
• Remodeling

All of these loans are guaranteed by the government so the interest rates are typically lower than loans from conventional methods.

If you are a small business owner, it may be more difficult for you to qualify for a loan, especially if you are just starting out and you do not have solid proof of earnings. To qualify, you have to keep accurate, thorough records of your finances. This will show the FHA and lenders your income and your ability to repay the loan by making timely payments.http://fha.mortgageloanplace.com/

The FHA has been helping Americans gain peace of mind and achieve [[[The American Dream]], for decades. The economic failure of The Great Depression caused a lot of people to lose their home and the economic crisis made it almost impossible for anyone to qualify for a loan. In 1934 the National Housing Act was passed and the Federal Housing Administration was created to govern the terms of mortgage loans and to curtail interest rates of the loans. These changes allowed people to purchase a home and easily afford the monthly payments.http://en.wikipedia.org/wiki/Federal_Housing_Administration

When you go the the FHA for a loan to buy a home, you will need to have a down payment of up to 10%, starting in April, 2010. At that time, the amount required for a down payment will rise from 3.5% and this increase will greatly effect the borrower. http://www.youtube.com/watch?v=YjO12EIMwA4There are government sponsored agencies who can help you with your down payment and offer you free financial counseling to help you learn to manage your money.http://www.hud.gov/buying/localbuying.cfm

You have to make a budget because your finances will have to be structured so that you can stick to the budget and meet your monthly obligations and decrease your chances of foreclosure. Get familiar with the interest rates and FHA loan guidelines in your State and county so that you will meet all of the qualifications. Study the requirements as you prepare your down payment so that you will be ready when you meet with a lender.

There are several expenses that you can do without so that you can afford your home. Cable TV, frequent shopping trips, restaurant meals, excessive credit card use and driving instead of walking are ways to spend your money when you could be saving it. If you have several credit cards and charge cards, pay them off and stop using them for a while, the interest rates alone will be thousands of dollars per year. Walking to the corner store or taking the public transportation to work everyday will add to your savings.

Getting a part-time job will help you save quicker, look through the newspapers for current job openings. When you get paid, put the entire check in your savings account. Maybe you can get a temporary roommate to help with half of your current rent and utility bills. Saving half of your monthly living expenses can make your down payment seem a lot easier to obtain. There are a lot of ways you can save money for your new home. Make a list of how you spend your money and and figure out how you can start spending more wisely.http://www.wikihow.com/Save-Money

When you get enough money saved for a reasonable down payment, you can look for an FHA approved lender. There are dozens or possibly hundreds of lenders to choose from and you have to make sure you choose someone whom you feel comfortable working with. When you chose a lender you are comfortable with, the entire experience will be better for you. You can find and research approved lenders at the library or on the HUD website. http://www.hud.gov/ll/code/llslcrit.cfm

The interest rates will vary from lender to lender, you should look for a loan with the best interest rates and terms. Loans that have adjustable rates seem to be the best because the initial interest is very low. Sometimes, with this type of loan, the rates increase so much the homeowner cannot afford the payments but, there is a legal limit to the amount the interest rate can rise. If you choose a loan with fixed rates, the interest rates will not rise, they will remain the same through the loan.

Be aware of predatory lenders who will try to give you a loan with interest rate that will steadily increase throughout the life of the loan.

What is a predatory lender?

• When you get a loan from a predatory lender, you can expect unfair treatment riddled with lies and fraud. This type of lender will add impossible terms to the loan contact that will result in the loss of your collateral. The predators usually target people who are not familiar with the laws that protect the borrower. The best way to avoid being taken advantage of is to familiarize yourself with the way these fraudulent lend operate and steer clear.http://en.wikipedia.org/wiki/Predatory_lending

Go to the lender that you chose to work with and complete a loan application. You should have all of your documents ready and be aware of the following:

1. The application fee which will vary.
2. Social Security number of all names on the application.
3. A list of your residences for the past two years.
4. State issued identification for all names on the application.
5. Proof of income and/or current pay stubs from your business or your job.
6. Tax records from the previous two years.
7. A list of your debts - all of the businesses you owe monthly payments to.
8. Bank records which include your savings account and checking account statements and other bank account information.
9. Proof of income from the past two yearshttp://library.hsh.com/?row_id=42

You will need all of these documents when you go to apply for your loan and the loan officer will assist you through the process. If you have trouble finding a lending institution to handle your loan application, you can go to your bank and inquire about FHA loans, you may be able to complete your loan application there.

When you complete your application and are approved for a loan, you will be required to produce a down payment and other money due. If you did not save your money for the down payment, closing costs and other fees, you can get assistance from an agency that specialize in this area.http://www.downpaymentsolutions.com/