Financing a new home or refinancing your current mortgage can be a daunting task. With subprime loans nearly become extinct, FHA has inspired a new group of homebuyers who look to seize the opportunity of declining home prices combined with affordable interest rates. Finding a lender who provides good advice and competitive interest rates for mortgage loans that meet your needs can be a difficult experience. Sure getting a quick rate quote online can be fast and convenient, but contracting the service of a good FHA mortgage lender may take some proper planning and preparation.

Shopping for a home loan online can be done at work or in the convenience of your own house, but you have to ask yourself… “How do I know this lender is legit?” Evaluating loan quotes from most FHA lenders should provide you with some peace of mind because HUD requires that each FHA lender have a commercial location and the requirements for bonding is more significant than it has been for mortgage brokers in the last few years.

Remember the following mortgage basics when considering home refinancing or financing with a government loan. FHA requires mortgage insurance of 1.5% of the loan amount, but its tax deductible and you only need to come up with 3% down for purchasing. FHA allows a wide range of credit so if you had a past bankruptcy or late payments years ago, you’ll likely still qualify. FHA mortgage rates are very low in 2008 and they promote responsible lending with fixed rate loans. FHA does not allow pre-payment charges, so you will not be charged high cost penalties if you want to refinance or decide to move. Last but not least always review the loan disclosures and negotiate with the “Good Faith Estimate.”