The Federal Housing Administration: How It Impacts the Long Beach Island Real Estate Market
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LBI Real Estate and the Federal Housing Administration 
LBI Real Estate and the Federal Housing Administration 
LBI Real Estate and the Federal Housing Administration
Long Beach Island Real Estate
The Federal Housing Administration (FHA) is a Federal agency that oversees the Federal home loan programs. It was established in 1934 by President Franklin D. Roosevelt to make it easier for first-time buyers to purchase homes and encourage growth of new home construction companies. FHA loans are designed with first-time buyers in mind, but they also work well for anyone who wants to move up or downsize without having cash on hand. The FHA program includes conventional mortgages, where the homeowner pays all financing charges, and government-insured mortgages, where the Federal government bears some of these costs, reducing monthly mortgage payments substantially, making them more affordable for many people. While not the most common type of loan in the LBI real estate market, all buyers and sellers should be aware of these loans.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate and the Federal Housing Administration
For decades, the Federal Housing Administration has been a part of the Long Beach Island, New Jersey real estate market. It is estimated that about 20% of all home loans written in 2016 were FHA-backed, representing approximately $120 billion worth of mortgages issued by lenders nationwide. The Federal government ensures these loans and thus reduces risks to banks and other financial institutions, making them available to borrowers. Doing this encourages more lending activity such as refinancing (which can further stimulate economic growth), allowing people with less than perfect credit or low down payments access to housing finance opportunities they might not otherwise be able to obtain. Besides helping first-time buyers purchase homes, another benefit of Federal Housing Administration financing options is their flexibility; there are no limits to how many times Federal Housing Administration financing can be used.
The Federal Housing Administration: How It Impacts the Long Beach Island Real Estate Market
Federal Housing Administration financing can be used to purchase a home, refinance an existing Federal housing administration loan or get cash out for any other reason. FHA loans are designed with first-time buyers in mind. Still, Federal housing administration financing is flexible enough to meet the needs of all prospective homeowners who need help obtaining affordable rates on their new mortgages. Buyers and sellers in the LBI real estate market should understand what the Federal Housing Administration is just in case they encounter it throughout the home buying or selling process on Long Beach Island. For more information about buying, selling or investing in the Long Beach Island real estate market please do not hesitate to contact me.
By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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