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It is important to compare FHA lender mortgage rates and closing costs, because each lender will have different terms and conditions, and mortgage interest rates may vary considerably.

The FHA does not make loans itself - if this were the case, there would be one standard loan for FHA mortgages. Rather, the FHA insures loans made by private lenders.

Therefore, the first step in obtaining an FHA loan is to contact several lenders and/or mortgage brokers and ask them if they originate FHA loans. As each lender sets its own rates and terms, comparison shopping is important in this market.

In some cases, an intermediary organisation can obtain a range of quotes for you from different lenders, which saves you the time and effort of shopping around to all the different lenders yourself - and saves you from filling out many forms with the same financial information over and over!

When you compare FHA lender mortgage rates and closing costs, remember that a better mortgage interest rate can be offset by high closing costs or ongoing account-keeping fees. Similarly, you may find that a mortgage which offers very low costs to set up actually costs a lot more in the long term, because the mortgage interest rate is higher.

Also be careful to check whether the mortgage rates you are being quoted are for fixed or adjustable mortgages. An adjustable mortgage will almost always have a lower interest rate than a fixed mortgage at the time that you make the decision. However, if mortgage interest rates are likely to rise - as they are right now - you can quickly find your adjustable rate mortgage becoming much more expensive than the comparable fixed rate mortgage would be.

Do not simply accept the first offer you receive from an FHA lender - compare FHA lender mortgage rates and closing costs between several lenders to ensure that you are choosing the right FHA mortgage for your situation.

FHA Loan Requirements

Compare FHA Lenders

The Housing and Economic Recovery Act of 2008 has markedly increased the capacity of the FHA to insure loans for borrowers affected by the US housing crisis. Loan amount limits have been raised in some areas, and other restrictions loosened. FHA loan requirements have never been so generous, and any home owner suffering mortgage stress would be well advised to investigate the possibility of FHA loan assistance.

Mark Bennett is a staff writer for Money Talks, and contributes regularly to other financial sites. This article is part of his series on refinancing, which can be seen at EmergencyRefinancing.com.

Purchasing a home after a recent bankruptcy is not impossible. Although most lenders recommend that you wait at least 24 months before applying for a mortgage, there are ways to obtain a mortgage loan sooner. Lenders are generally willing to approve recent bankrupt individuals for a home loan. The home or property serves as the collateral. Thus, if you default on the mortgage, the lender forecloses on the property. Moreover, obtaining a mortgage loan is a perfect way to re-establish credit. Here are a few tips for improving your chances of obtaining a home mortgage after bankruptcy.

Establish New Lines of Credit

It is not mandatory that individuals with a recent bankruptcy wait 24 months before purchasing a new home. However, waiting has its advantages. After a bankruptcy is discharged, you need to begin rebuilding your credit. This is accomplished by opening new lines of credit. Applying for a credit card is the easiest and the quickest way to improve credit history. Initially, you may have to obtain a secured credit card. However, once your credit rating improves, you will begin to receive offers for unsecured credit cards. Ideally, you should open at least three new credit accounts. Maintain low balances. Avoid late payments. If possible, try and pay off balances each month.

Monitor Credit Reports

Once you have begun to re-establish your credit history, start a routine of regularly checking your credit report for errors or inaccuracies. Get involve with a credit report monitoring agency. These agencies are effective because any suspicious or unusual account activity will be brought to your attention. Moreover, the agency will contact you if a new account is opened in your name. If errors appear on your credit report, contact the credit report bureau to file a dispute, and the creditor to resolve the issue.

Have a Down Payment

Waiting 24 months after a discharge to purchase a home is advantageous because you are able to obtain a mortgage with 100% financing and little money down. If you are eager to purchase a home soon after a discharge, you must have a down payment. Moreover, your credit history since the bankruptcy has to be blemished-free. Late payments or missed payments may disqualify you from obtaining a mortgage loan.

View our recommended bad credit mortgage loan companies here at: Recommended Bad Credit Mortgage Lenders.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.