Terms & Definition
During current world events, many communities and families have been directly impacted by Covid-19. According to realtytrac.com, they have reported that nearly 1 of every 9700 Californians are experiencing a foreclosure as of June 2020. With the job market decreasing and the economy forecast being unpredictable, it wouldn't be surprising if that statistic continues to climb. However, there is still hope! As concerning as all this might be, there is still a way out. Everyday, the housing marking still remains hot and the prices of homes are still going up. Which is why in this blog, me and my team have a dedication during these trying times, to spread awareness of the foreclosure process and some strategies on how to recover/avoid it.
What are FHA Loans?
If you've been shopping around for a home I am sure you've heard the term FHA thrown around casually. To one who is unfamiliar, this may sound confusing, but it's actually a simple term and commonly used in the real estate industry.
So... what is FHA you ask?
FHA stands for Federal Housing Administration and their main purpose is to help communities grow and increase land ownership. But first, we must understand that this type of loan is not for everyone, it is designed to help people in the lower-income bracket to give them the opportunity to participate in land ownership. The way this works is the Administration insures the mortgage so lenders take on less risk when lending. This whole loan process is known as a "FHA Loan", meaning that the loan is backed by the government and provided by the lender to the borrower. Simple!