May be you have heard of FHA loans but it is possible that you may not know what they are exactly. FHA loans are only provided by FHA lenders. But still the question remains that why and how to take this specific type of loan. First let us time travel to the year 1929. A huge financial breakdown shattered US market. The banks were incapable of paying the loan amount. The homeowners as always were fully dependent on the banks to reimburse their loans. This critical condition left common people in great distress.

To get rid of this problem, in 1934 US banking system was refreshed. An independent agency was introduced to take control over the terms and conditions over mortgage loan and interest rate. That agency was named as FHA (Federal Housing Administration). The main function of this agency was to buy back the mortgages and also insure those. This particular measure helped a lot to cure the financial crisis by reducing bank’s loan overhead.

I suppose now you have got a fair idea on FHA loans, so let us discuss about its benefit a bit. After the recent recession FHA loans have regained its importance in market.

1)You can get a maximum of 97% of your property’s value as a loan with a mere down payment of 3.5%.

2)Your credit history will not be a big problem as long as you do not have extremely bad credit record. In that case a FHA lender may deny you a loan.

3)You can get a FHA loan by just showing your last two years tax return, profit & loss statement and current balance sheet, even if a bank denies you a loan which commonly happens for self employed people.

4)The stable interest rate will not steal your sound sleep.

5)Collaterals are not mandatory while taking FHA loans from a FHA lender.

Apart from FHA loans you can opt for Miami hard money lenders when you are considering real estate. Hard money is something which you can get in for the valuation of a real estate. In general people use to take real estate loans from banks. But there are several disadvantages. Banks follow a lot of rules & regulations. Moreover banks sometimes take pretty long time to process loans which are very problematic at the time of emergency. Miami hard money lenders can solve all these as they are very lenient.

Miami hard money lenders can provide you money in very short time which makes it a very good option for investors of real estate. This can also help them while bidding for a property. You should look out for an honest Miami hard money lender as you can continue your business proceeds with this lender. Most of these lenders work from home or small private offices. This proves that they have a good flow of liquid cash and are trustworthy. But be always alert that if you are unable to repay the amount in given time, the increased interest rate on the loan can make you cry. This goes for both FHA lender as well as Miami hard money lender.