Louisiana FHA Loan

Although portions of the state were devastated in the wakes of Hurricane Rita and Hurricane Katrina, Louisiana continues to grow as an increasingly popular venue for new condos and homes in the rebuild of the once illustrious waterside cities. But if you're going to venture out into Creole cities and Cajun back country, you'll want to do it with a Louisiana FHA mortgage.

If you're seeking property in Louisiana, there are a few things you need to know:

• ü FHA loans and mortgages are not only for first time home buyers and those with low or poor credit
• ü Having the correct title insurance for your property will be a necessity, since it will protect you from concealed damages and charges for repairs that won't be completed.
• ü FHA loans are not insured or originated by the FHA.
• ü Homeowner's insurance in Louisiana is through the roof, so you'll need mortgage interest rates that will leave room in your bank for high premiums.

But seeking prime real estate in Louisiana is about so much more than just the basics. You'll want to know your Louisiana FHA home loan inside and out, its requirements and its benefits, before you sign your name and get building, or moving. Some of the requirements for a Louisiana FHA loan are:

• ü Your past two years' income should be the same or increasing, never decreasing
• ü Your credit report should be relatively free of late charges-less than two 30 days late in the past two years
• ü Two years of steady employment
• ü Any bankruptcy on your record should be at least two years old
• ü Any foreclosure on your properties should be at least three years old
• ü You may only have one FHA loan or mortgage at a time
• ü Your LA FHA mortgage payment should be approximately 30% of your gross income or less.

Although there are many restrictions for the FHA loan in Louisiana, it is still the easiest type of loan to qualify for and has some of the lowest down payment rates, typically around 3%. Additionally, there are many other benefits of having a Louisiana FHA mortgage in LA, including, but not limited to:

• ü Down payment assistance programs-if you don't have enough money for a down payment, don't worry-the FHA will help, sometimes covering the entire cost of your down payment with no repayment requirements
• ü Choice of financing options
• ü The possibility of the seller paying your closing costs

However, in addition to the requirements and benefits of having an FHA loan in LA, there are dozens of costs that you must be able to afford before purchasing a home. If the seller does not pay your closing costs for you, which they won't in many cases, you'll have to pay title search fees, title insurance fees, attorney's fees, homeowner's insurance premiums, mortgage insurance, etc.

If you're thinking about an FHA Loan in LA you need to know that FHA Loans are not insured or originated by the FHA so you'll be responsible for obtaining mortgage insurance to protect yourself and your lender as well as the origination costs of the loan.

However, you may be in a bit of luck if you find yourself a fair Louisiana FHA mortgage lender. A good FHA mortgage lender will not only offer you the most competitive FHA mortgage rates, but will also tell you about some of the new plans implemented by the Louisiana division of the U.S. Development of Housing and Urban Development. The newest program is the Louisiana FHA Energy Efficient Mortgage Program. If you make energy efficient upgrades to your property you can include the costs in your mortgage without compromising yourself or your loan. However, the same loan caps still apply, even under the new program.

The current FHA loan limits in Louisiana range from $145,000 on the low end for single family mortgages to $280,000 for four-family units, depending on the parish where you are purchasing your property.

Once you have found the perfect Louisiana FHA mortgage lender that can meet your needs and clue you into the fine details of FHA loans in LA you'll be ready to start moving in on your permanent Mardi Gras.