Until very recently, scads of people were being offered a mortgage at sub-prime rates - regardless of their credit history. Great for the borrowers, but gambling with high risk mortgages has led to an increased number of foreclosures. According to Personal Finance Editor, Allison Bisbey Colter, in "Consider an FHA Loan" on April 5th, 2007, "Sub-prime lenders are closing up shop or tightening their lending standards, making it tougher for people who are first-time homebuyers or have impaired credit to get financing."

The Federal Housing Administration, however, is continuing to step up in an ongoing effort to help borrowers with less than perfect credit achieve the dream of purchasing a home.

Federal Housing Administration Loans to the RescueAccording to the FHA, twice as many people with sub prime loans, who are dangerously close to foreclosure, are refinancing into government-insured FHA mortgage loans. Federal Housing Administration loans are ideal for the first time home buyer and those who are "credit challenged." The current maximum for FHA home loans is just over $360,000. But, in keeping up with the ever increasing housing prices, that amount is proposed to increase to $417,000 in the not-so-distant future.

FHA home loans are not about the glitz and glamour you might find at private lending institutions. But FHA mortgage loans do have several advantages:

• FHA mortgage loans do not require minimum credit scores
• Even if you've bankrupted, you may still qualify for FHA home loans.
• A 3% down payment may be all you need
• Great rates and low monthly mortgage insurance
• FHA home loans are the safest ARM (Adjustable Rate Mortgage) currently available on the market
• Streamlined refinance and assumable loan options are available with ENG's FHA mortgage loans.

Many clients who have less than perfect credit are now turning to ENGLending.com for FHA home loans and refinancing options. Wondering if a FHA home loan might be right for you? Contact ENG's team of lending experts for more information - toll free: 1-866-878-2265. For more information online, check our FHA loans frequently asked questions!