Protecting Yourself From Foreclosure

How can being insured by the Federal Housing Administration protect me from foreclosure?

Being insured by the Federal Housing Administration, which is a FHA insured loan, is helpful to a prospective homeowner when they obtain financing because with the additional insurance through FHA, that enable them to get lower mortgage rates and lenders are much more willing to make those kind of loans particularly today because they can be packaged and pulled and resold and the secondary mortgage markets whereas non-FHA and non-VA guaranteed loans cannot be resold easily in secondary mortgage markets because of the extreme difficulties in those markets last year.

How can being insured by the Veteran's Administration protect me from foreclosure?

If you are a Veteran from serving in the United States armed forces, you qualify for what is known as a VA guaranteed homeowners loan. It works very similar to an FHA insured loan, and in fact putting the credit of the United States governments behind you, promising that you will repay the mortgage payments on your loan. And as a result you're able to get a lower mortgage interest rate. And the money is much more available today to provide that kind of mortgage financing, because these loans are easier to resell in a secondary mortgage markets.