The Federal Housing Administration (FHA) was established in the year 1934 with the objective of providing feasible housing solutions low and middle-income families making it possible for them to realize their dreams of owning a home. The prime objective of introducing FHA insured mortgage loans is to protect borrowers from predatory mortgage lenders and protect lenders from loan defaulters.

However, FHA does not provide any loans to the borrowers. On the contrary, the loans are insured by the FHA under which borrowers can obtain mortgage loans from any FHA-approved lender at competitive rates.

Benefits of FHA insured mortgage loans:
These loans are particularly beneficial to the borrowers. As the loans are FHA insured, lenders find it convenient to reduce mortgage rates over these loans. FHA insured mortgage loans are offered as 30-year fixed term mortgage loans or adjustable rate mortgage (ARM) loans. In case of ARM loans, FHA generally considers 1-year constant maturity index while rescheduling the interest rates. Also, FHA insured mortgage loans have other advantages such as low down payment, low origination fees, zero prepayment penalties, mortgage insurance and providing financial assistance during closing. The usual down payment on these loans is 3 percent.

Eligibility Criteria:
In conventional mortgage loans, loans are available with lower down payment but are offered at higher mortgage rates. FHA insured mortgage loans are particularly beneficial to those who are first time buyers but do not have finances to make large down payments. However, there are certain criteria that need to be fulfilled in order to be eligible for these loans. The applicant should have a good credit history and a stable income. But, even borrowers having a poor credit history can qualify for an FHA insured mortgage loan under certain schemes. Apart from this, FHA also offers loans under acquisition or home rehabilitation projects.

There is a tough competition in the UK financial market. To gain maximum market share, the lenders are offering many incentives to the borrowers like fast loans, low rate of interest and flexibility in repayments. All these advantages or concessions attract borrowers and help the lenders retain and grow their customer base. The goodwill of the lender increases in the financial market and he gets a lot of business.

A lot of loans are available in the market. Basically, we can categorise all loans into secured and unsecured. Secured loans, although not among fast loans, can offer you a low rate of interest. These loans require your property to be valued and, therefore, it takes time to get such loans. On the other hand, unsecured loans are fast loans. These loans do not require any security and the formalities involved are few.

Many borrowers are now taking the online route to fast loans. There is a huge market for online loans – most of it is sub-prime lending. Sub-prime market deals with borrowers who have a bad credit history. Amidst increasing debt problems in the UK, many borrowers are earning the dubious distinction of being bad credit borrowers. There is a separate market for such borrowers called sub-prime market.

The need for fast loans peaks during emergency situations. Fast loans become necessary when you have time constraints to work within. Suppose, you meet an accident and you do not have any insurance to depend upon. If you can get a loan quickly in such a situation, it will do a lot of good to you. Similarly, many other situations may arise when you need quick loans. It is better if you opt for personal or unsecured loans in these circumstances because such loans take very less time when compared to those loans that require security.

A well-planned and adequate finance in any business makes it flourish more. You cannot progress in a business without having a financial backup. Money is the main success behind any business. “Money begets money,” this quotation is always right as far as business is concerned. If you invest money in the right direction, you are bound to get success in your business. Therefore, if you are planning to raise money from your business, Business loans could help you in all possible way.

Business loans are designed to cater all your business needs. You can take business loans for many purposes such as:

• Buying lands and buildings;
• Acquiring office premises;
• Purchasing business equipments;
• Maintaining cash flow in the business;
• Giving wages to the employees.

Apart from banks and building societies, several lenders in the financial market provide business loans to the entrepreneurs. These lenders offer loans at competitive rates of interest. Getting loans at a reasonable interest rate is not easy. You need to make an easy effort. Browse different financial websites that deal with business loans. Consider your financial requirements and choose the right business loans for your business.

All your financial needs of starting a business or for wedding can be looked by your home. Your home is not only a place where you reside but can also be used for getting huge finance to fulfill your dreams. Home equity loans are loans that are granted on equity of the home.

Home equity loans are secured loans that allow you to avail loan against the equity of your home. The collateral placed for availing loan is the home equity. The term “equity” is defined as the amount of funds you have invested to own your home or to improve it.

The various purposes for which home equity loans can be availed are for debt consolidation, home repairs and improvements, medical bills etc. The loan amount that can be availed under a home equity loans depend upon the borrower’s repayment ability, credit history, income status etc. The interest rate charged under home equity loans is low and the repayment tenure for home equity loans is up to 25 years. Since the repayment tenure is large the loan amount can be repaid in small easy monthly installments.

Home equity loans are granted in two ways fixed rate loans and adjustable interest rate loans. In fixed rate loans the borrower gets the whole loan amount needed in one go. The loan amount applied for is obtained as lump sum whereas in adjustable rate loans you are given a line of credit and can avail loan up to that credit limit.

Home equity loans can be availed by borrowers with bad credit history also. Any credit score below 600 is considered as bad credit by lenders. The various reasons for bad credit history are CCJs, IVAs, bankruptcy, arrears etc. Bad credit borrowers can avail home equity loans at flexible terms of repayment and comparatively interest rates.