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If you are a homeowner or farmer, the FHA is likely to be one of the best options that you have available. Whether you are looking for a standard conventional home loan with a very low downpayment requirement and interest rate, or if you are an agriculturalist looking for a FHA ag loan, business plans can easily be devised to help you out with your unique situation.
The FHA was created as part of the National Housing Act of 1934 in order to increase the standards of housing in America and to stabilize and insure the home financing industry. When it first came into existence, home mortgages were very short, ranging mostly from three to five years, and downpayment requirements were exceptionally high. When the banking crisis occurred, lenders were forced to retrieve their loans, and with high unemployment rates, many homes got foreclosed upon rapidly. The National Housing Act of 1934 allowed the FHA to regulate the banking practices so that more people could afford the initial large down payments, and could ensure that there was greater economic stability in the system overall.
The system also allowed for an expansion of agricultural loans. With an FHA ag loan, business plans can be construed very easily and affordably. The loans available through FHA farm loan programs allow you to borrow a minimum of $100,000 with no maximum amount, with a conventional amortization length of 15 to 30 years, and with no pre-payment penalties. The lending instruments are very safe and stable, and many different kinds of operations qualify. There are also a few part-time farm loans that you can qualify for with an FHA ag loan.
Business plans in the modern market are very easy to work with the opportunities provided for by the FHA. Be sure that you know all your options and you will have little difficulty getting the financing that you need.
