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Tag Archives: Charlotte Real Estate

The History of FHA

FHA has helped bolster homeownership in the U.S.

The Federal Housing Administration ( FHA ) was established in 1934 in the midst of the Great Depression. Economic conditions were bleak at that time. Unemployment was at 25%. If someone wanted to buy a home, the lending terms were very difficult, sometimes requiring a 50% down payment, high interest rates, three-year to five-year loan terms, and a huge balloon payment at the end of the term. Only about 40% of all households owned their own homes.

The FHA began by insuring loans for lenders. Because of this insurance, lenders were more willing to extend credit.  To avoid the problems with mortgages in the past, the FHA developed the 30-year fully amortizing fixed-rate loan program. Borrowers were no longer faced with large balloon payments and could be assured that their loan could be paid off at the end of the term. This also provided lower monthly payments for borrowers.

During the 1940s, new FHA programs were developed to help veterans returning home from World War II.  Later, other programs were developed to help the elderly, the disabled and lower income Americans obtain home ownership.

Most standard, conventional mortgage loans today require a down payment between 5 to 20% of the purchase price (95 to 80% loan to value or LTV).  This reduces the risk to the lender in case of default because there is a buffer between the current market value and the amount the lender is putting at risk to lend to the borrower.

FHA is not a direct lender, yet it works with private lending institutions to offer special loan programs that may help people purchase residential properties.  FHA has loan guidelines that are more lenient than conventional loan products, as well as lower down payment requirements, as low as 3.5% of the purchase price.  FHA loans are only for owner-occupied, single family homes, condos, townhomes, or multi-unit homes up to four units. Commercial properties, apartment buildings, or other properties that would not be used as a primary residence, such as a vacation home, would not be eligible for an FHA loan.

FHA loans also removed the requirement for three-year to five-year loan terms with large balloon payments.  Instead, FHA loans instituted 15-year and 30-year loan terms with full amortization, meaning when the loan term ends, the loan is fully and completely paid off.

Filed Under: FHA

Buying Your First Home

Overview of the home buying process for home buyers in the Charlotte real estate market Buying a home can be both exhilarating and overwhelming. Buying a home is a complex, multi-step-process that requires careful planning, diligence and know-how. For most people, buying  a home is  the largest investment they will ever make in a lifetime.… Continue Reading

Mom, Dad…Can You Buy Me A House?

Mom, Dad…Can You Buy Me A House?

High unemployment and a weakened economy have eroded consumer confidence when it comes to buying a home. However, putting aside emotions and looking at the numbers – purchasing a home makes more sense now than ever before. Low home prices and record interest rates combined are creating unprecedented opportunities for wise home buyers. Owning a… Continue Reading

Taking The Stress Out Of The Home Buying Process

Buying a home in the Charlotte real estate market (just as anywhere else in the nation) is a process that has unfortunately become increasingly complicated and stressful for home buyers over the years. It’s easy to get attached to a home emotionally, but there are a lot of unknowns during the home buying process that… Continue Reading

Owning A Home Is More Affordable For First Time Buyers Than Ever In Charlotte NC

Higher rent, record low interest rates, home prices down 20% to 40% –  isn’t it time to consider owning a home? With consumer confidence down, more people are renting these days than before. Like everything else, rent rates obey the law of supply and demand. The vacancy rate for rentals (apartments and homes) are shrinking… Continue Reading

The Role of A Closing Attorney In The Real Estate Transaction

The importance of having a closing attorney when you purchase a home A closing attorney plays a critical role in the purchase of a home. The home buyer is responsible for hiring a closing attorney. The purchaser’s real agent can help in recommending a few closing attorneys. The purchaser is typically responsible for the attorney’s… Continue Reading


Would you like to find out if you qualify for the purchase of a home? A down payment assistance? Are you interested in having Cornerstone Realty help you to sell your home? Call us today or fill out the form below and we will contact you as soon as possible.

Mortgage Center

We have included below a few tools to help you determine your mortgage payments, closing costs and an estimator of how much you could afford based on your income. To get pre-approved for the purchase of a home, give us a call today or fill out an online inquiry from our website and we will contact you with 24 hours of your submission.

About Us

This Charlotte real estate website provides search tools, information and market news for home buyers and sellers. All the properties displayed on this website are generated automatically from the Carolina MLS and are updated daily.

The down payment assistance programs discussed in this website are based on a 30-year fixed loan. Interest rate is the current market rate.

If you have questions, please contact us today. Your inquiry will be answered by a Realtor® licensed to practice real estate.

Contact Information

Office: (704) 837-4672
Email: info@nc-homeownership.com
Address: 317 Matthews Mint Hill Road, Suite 201 Matthews, NC 28105

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Charlotte Real Estate website – We provide Real Estate services to home buyers and home sellers in Mecklenburg, Union, Gaston, Cabarrus and Stanly Counties.

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