FHA Loans: America's Favorite Mortgage
What appeals to many first-time homebuyers about FHA loans are the lenient eligibility requirements. But whether you're buying your first home, or just moving to a new one, the FHA loan program can help you finance a home with low down payments and flexible guidelines.
A popular FHA program is the fixed-rate mortgage, in which the interest rate remains the same through the term of the loan. With this constant interest rate, monthly payments don't change. Fixed-rate mortgages come with terms of 15 or 30 years.
Adjustable-rate mortgages have an interest rate that—after an introductory period—varies for the life of the loan. The interest rate changes annually, going higher or lower, reflecting the fluctuating market indices approved by the FHA. The FHA has a few adjustable-rate mortgage options that can suit the needs of many borrowers.
This construction loan is an FHA program that finances the lot purchase, construction, and permanent loan of a new home in a single mortgage. You need only qualify once and pay a single set of closing costs. Your fixed-interest rate is locked in and the entire loan is in place before construction on your new home begins.
The FHA offers this type of loan to borrowers who expect their income to increase. The Graduated Payment Mortgage initially has low monthly payments that then gradually increase according to one of five available plans, which have varying lengths and rates.
Growing Equity Mortgages (GEMs) are part of the FHA's Section 245(a) loan type that start off with lower initial payments, and increase according to a predetermined schedule over the life of the loan.
The FHA's Energy Efficient Mortgage program (EEM) finances energy-efficient home improvements for FHA borrowers. This helps homebuyers save money on household utility bills so that they can afford to make monthly payments on their home mortgage.
The FHA helps finance the purchase of condominiums with what is called a Section 234(c) loan. This loan can have a term of up to 30 years. It is primarily for residential condos that have at least two units and are located in an FHA-approved condominium projects.
FHA Loan Articles
February 26, 2021Many Americans go with FHA loans because there are a number of mortgage programs that can fit different needs. These programs include FHA Fixed Rate Loans, FHA Adjustable Rate Mortgages, FHA One-Time Close Loans, FHA Condo Loans, and several others.
February 21, 2021The new year came with some changes being made in the mortgage industry, particularly when it comes to Adjustable- Rate Mortgages, or ARMs. The interest rate you get with an ARM is based on an index and a margin which is disclosed when you apply for the loan.
February 6, 2021As an existing homeowner, you may want to take advantage of falling interest rates by refinancing your current mortgage. For many homeowners, the thought of going through the refinancing process can be tiresome. But an FHA Streamline Refinance could help you avoid the extra work.
January 30, 2021As your closing day gets closer and closer, you might start to feel a little nervous. Do you have everything you need? Will something delay the closing? These worries are natural, but the more prepared you are, the less overwhelming it will all seem.
January 16, 2021What you may not know that there are many different types of refinances and different benefits that come with them. The cash-out refinance, or cash-out refi, is one that many borrowers opt for, for several reasons.
