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FHA Interest Rates
FHA revolutionized the mortgage industry at the time by offering the 30 year mortgage and made the possibility of home ownership available to Americans nationwide. Throughout the years, a variety of programs have spawned from this revolution to make home ownership easier, more affordable, and attainable to Americans.
FHA loans are easier to qualify for, have low FHA interest rates
and can require a smaller down payment than other loans. Closing costs are regulated so you aren't hit with big fees at closing time.
Many closing costs can be financed. With most conventional loans, the borrower must pay, at the time of purchase, closing costs
equivalent to 2-3 percent of the price of the home. FHA's mortgage insurance programs help low- and moderate-income families become homeowners by lowering
FHA interest rates
of their mortgage loans. FHA mortgage insurance also encourages lenders to make loans to otherwise creditworthy borrowers and projects that might not be able to meet conventional underwriting requirements, by protecting the lender against loan default on mortgages for properties that meet certain minimum
requirements. Low FHA
interest rates make the loans more obtainable to people with poor credit, it is also legal to use down payment money you receive from a charitable donation or family member.
The mortgage loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD.
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