Many of us are able to come to the realization at some point in our lives that we are very fortunate individuals. Even if we’re not near the top of the wealthiest Americans list, we’re still near the top of the most fortunate people who have ever existed on the face of the planet list. If we’re able to eat, drink and bathe ourselves with clean water, have roofs over our heads and live in this great country of America, then we’ve got it pretty good. Everything is relative, regardless of the emotional or financial hardships that we experience, most people have had it and do have it much worse that we do.
So, it’s always important to keep things in perspective and understand that it can always be worse, because we’re living in some of the most prosperous and advanced times that any society in human history ever has. So, cheer up buttercup, everything’s going to be alright if you can always keep in mind that you need to be grateful for everything that you have, and you have many opportunities to make your life everything that you’ve ever wanted it to be.
Take this into consideration: Have you ever stopped to think that well over half of the earth’s population is in no position to even think about home ownership? The idea and goal of owning a home is at the center of every free-thinking man and woman that exists, especially if they’ve ever been subjected to the suppressing and unfair rule of tyranny. This country has a sordid past, that’s undeniable, but it’s intentions are to provide equality and opportunities for anyone who is willing to seek them out and work for them. That’s why government agencies were created to provide mortgage loans to low-income, middle, and working class families.
The Federal Housing Administration (FHA) is one such agency that is committed to making the possibility of home ownership a reality for those who don’t qualify for conventional loans through bank lenders. The FHA is a government agency whose goal is to make home loans available through participating lenders whose risk-level is mitigated by that fact that they’re federally insured loans. This means that, unlike traditional bank loans available to wealthier Americans with access to tens of thousands of dollars for a required 10-25% down payment for a home loan, FHA loans are insured by the federal government, and the lenders themselves are not ultimately responsible if the loan were to enter into default status.
The FHA is not the lender however, this is an important distinction to understand. They are simply the governing body who guarantees and insures that whatever FHA-approved lender is willing to take a mitigated loaning risk by working with a lower-middle class home buyer, isn’t left holding the bag if the home owner is ultimately not able to make payment on their mortgage loan. It’s the faith and wealth behind the American government and it’s established agencies that make it worth the risk for any lender of any kind to put up the money for anyone seeking to obtain a piece of the American dream. Like any smart investment, whatever risks involved should be outweighed by the likelihood of interest and profitability to be had if things go as planned.
So, if you’ve got a good job with a steady paycheck, then you’re fortunate. If you’ve got the ability, financial discipline, and the brain to think that you’re capable of being able to put yourself in a position to buy a home, then you’re even more fortunate. Understand though, that there are reasonable steps that need to be taken in order to truly put yourself in a position to buy a home using a FHA loan. This requires that you have a credit score of at least 580 and that you save up, or have access to the 3.5% required down payment for any given home that you’re looking to purchase. That doesn’t sound unreasonable to you does it? Well, if it does then you’re not anywhere near the right state of mind to be in any position to think that you’re responsible or committed enough to buying a home, because that’s what the FHA and/or banks need to see in order to take a risk on you.
Remember that it’s not your right to own a home, it’s a privilege and if you don’t see it as such, then your sense of erroneous entitlement will probably be at the center of your eventual downfall. Whether that possible downfall involves your finances or your personal life, it’s something that you can avoid by starting to be grateful for and appreciate everything and everybody that you have.