That moment when you know you’ve found THE house!
You’re ready to buy and already have the new paint color picked out, but have you selected the right lender? Choose a Mortgage Lender who will get excited with you and walk side by side with you through the process.
FHA Home Loans
Home mortgages guaranteed by the federal government are not new. Programs were created as far back as 1934, and millions of people have benefited from this mortgage option. When shopping for your first mortgage, it’s common to have questions about which type to choose. Some will mistakenly assume that because a Federal Housing Administration (FHA) loan is a government program, they simply will not qualify They are a good option for first-time home buyers, and anyone who may not qualify for a conventional mortgage.
Plaza Park Bank understands that many people do not have a pile of cash sitting around to make a large down payment. Knowing your credit score and financial history can also give the impression that qualifying for a conventional mortgage would be difficult. This situation is not particularly unique. By spending a little time learning about FHA loans and the flexibility they offer can be helpful. At Plaza Park Bank we love helping families find the answers they need and secure their FHA home loan. We are dedicated to completing the process quickly and correctly so you can enjoy your new home as soon as possible.
The FHA Mortgage
We may not be in another Great Depression, but we are coming out of a collapse in the home market. In the 1930’s, large numbers of homes were entering foreclosure. Many people were unable to make a down payment on a home, and many had financial hardships that made it difficult to pay their bills. Also, banks were facing hardships because so many people were in default. Selling the foreclosed homes in the distressed market was difficult as well. The National Housing Act of 1934 created the FHA as a means to protect banks from losses and provide options for home buyers that were otherwise unable to qualify for home ownership.
FHA home loans do not require a significant down payment. Individuals who do not have the ability to put a large amount of money down are still able to purchase a home through FHA. The qualifications are also lightened as well. People with lower credit scores are sometimes more likely to be approved. An FHA loan may require the borrower to have mortgage insurance. The premiums for this type of insurance are typically added to your monthly payment. Because of the required mortgage insurance with an FHA home loan monthly payments may be a bit higher, but often it is an acceptable trade-off for many seeking home-ownership.
Why Choose Plaza Park Bank
Plaza Park Bank has been helping the Central Minnesota community since 1910. We are passionate about continuing our tradition of providing personal service from our experienced and caring family of banking professionals. Our bank is family owned and operated and we truly believe that we must develop relationships with those who bank with us. Our core values include a team focused strategy that ensures with Plaza Park Bank, you can expect the very best. We understand that you have questions about FHA and other mortgage types, and we look forward to answering them to meet your homeownership needs.
Contact Us Today For Answers to Your Loan Questions
We Love Our Clients!
(All quotes taken from recent follow up surveys with our mortgage clients)
They were very professional, knowledgeable & pleasant to work with. They responded to our questions quickly & accurately; we knew we could trust them and that there would be no “surprises” or issues at close.
Overall the mortgage process can be quite complicated but they did a great job helping us navigate the process and it all came together in the end.