We are now FHA approved and we are very excited about the potential of this opportunity. To understand the impact something like an FHA approval can have on home buying, let's a take a brief trip back in time.

The current housing market has had a tremendously negative impact on property values as well as the overall economy in general. Foreclosures started popping up in the sub-prime loan market and then, somewhat unexpectedly, into the general loan market shortly thereafter. People lost their homes, unemployment started climbing and economic growth quickly flung into reverse.

Needless to say, this all lead to an unstable banking system and, as a result, an unstable economy. Basically, the boom in foreclosures at the start of the housing mess, and the downward spiral thereafter, have made banks very nervous about lending money for housing in general. As far as new home buyers go, the lending requirements have basically fallen off a cliff and make little to no sense in a lot of cases.

Enter the Federal Housing Administration (or "FHA") mortgage insurance program which has been around since 1934. The application for the mortgage and the money you get still go through a traditional lender (the lender has to be FHA apprved as well) and the FHA program essentially insures your mortgage. This allows the bank to take on a "riskier" loan (although some would argue at this point "riskier" is being applied to almost anyone buying a home without 30% down and an 800+ credit score).

For more information on how to get into a Pine Arbor Condominium with an FHA loan, call or email us today:

Call us at 734-782-3600
Email us at questions@pinearbor.net


For more information on FHA in general, check out the following website: FHA WEBSITE.