FHA Programs

Fixed Rate Loans

Interest rate stays the same during the loan period.

Adjustable Rate Loans

Initial interest rate adjusts during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.  

The maximum amount that the interest rate on your loan may increase or decrease in any one year the Annual Adjustment Cap (example is 1-2%), depending upon the type of ARM you choose.

Over the life of the loan, the maximum interest rate change is the Life Cap (example is 5-6% from the initial rate).


FHA Streamlines

 The "streamline" refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are:

  • The mortgage to be refinanced must already be FHA-insured.
  • The mortgage to be refinanced must be current (not delinquent).
  • The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.

 

203K (Rehab Loan)

HUD's 203(k) program can help you overcome the obstacle of doing the repairs prior to close by enabling you to purchase or refinance a property plus the cost of making the repairs and improvements in one mortgage. The FHA-insured 203(k) loan is available to persons wanting to occupy the home.

The down payment requirement for an owner-occupant is approximately 3.5% of the acquisition and repair costs of the property.

 

Why Choose an FHA-Insured loan? 

There are lots of good reasons to choose an FHA-insured loan, especially if one or more of the following apply to you:

  • You're a first-time homebuyer.
  • You don't have a lot of money to put down on a house.
  • You want to keep your monthly payments as low as possible.
  • You don't have perfect credit.
  • You're worried about your monthly payments going up.
  • You're worried about qualifying for a loan.

If any of these things describe you, then an FHA-insured loan may be right for you.