FHA Rate

The Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) offer government-insured loans. These loans have features that make them easier for first time home buyers to obtain. Such as:

• Low down payment (usually 0% of the FHA appraised value of the purchase price, whichever is lower.
• Insurance for the federal government replaces private mortgage insurance.
• Maximum loan amounts vary by county.
• Fixed FHA rate and ARM's available.
• Allows homebuyer to receive all of part of their down payment and loan fees from a relative.
• Flexible credit guidelines.

FHA Rate is low, generally 5% or less. Qualifying for an FHA Home loan is done using a set of debt-to-income ratios that are a bit more in your favor than those used for conventional loans. The following points are important to qualifying :
Housing expenses should not exceed 29% of gross income, Total indebtedness should not exceed 41% of income. These numbers are by no means set in stone. If you have a history of making payments ontime or cash reserves, special considerations will be made to see if you can still qualify. In most cases you can even dump your closing costs into the mortgage amount so you need less money up front.

The FHA ARM combines the low FHA rate of an adjustable rate mortgage with the low down payment and liberal qualifying ratios of FHA-insured mortgages to produce one of the most affordable loan products. It also offers exceptional FHA rate protection with annual and lifetime interest rate caps that are lower than most ARM programs, as well as an extended period before the first rate change (up to 18 months, depending on the closing date). It also offers a lower margin than other ARM programs, which helps to hold down FHA rate changes. FHA's mortgage insurance programs help low- and moderate-income families become homeowners by lowering some of the costs of their mortgage loans.