2nd-Mortgage

Many people believe that the best mortgage deals are no longer available for the average consumer that is shopping for a mortgage in today’s economy. That may be true if you cannot prove your income or have had a bankruptcy in the last two years. However, if you are the average Joe with a few dings on your credit, and are looking to buy a new home, the best deals are still out there. The truth is, they have always been there. The Federal Housing Administration (FHA) has been helping the average consumer get great deals on mortgages since the 1950’s.

FHA mortgages fell out of popularity in the late 80’s and early 90’s because of the flood of new non-conforming mortgages that hit the market at that time. FHA mortgages are backed by the US Government, which means, they have forms on top of forms that tell you about the previous form that you have already signed. The new non-conforming were easier to qualify for and didn’t have mortgage insurance.

Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money.

Although a lender may think they have the best mortgage deals, they may not be the best ones available in your eyes. Now that you know some of the important pitfalls to avoid, you can make the right choices when you’re ready to sign a loan agreement. Do your own research and ask your lender to clarify any questions you have, and then finding the best mortgage deals will become much easier.