FHA Home Programs
The FHA home program will help make the goal of buying a home a reality for the first time. The best option for those who want to buy a home for the first time is various programs, national grants and loan collection etc. It allows borrowers to purchase a home for the first time without a 20 percent down payment.
Only by meeting the requirements of the FHA can you qualify for the loan and the process is very fast. Provide details of your assets, monthly income, and debt history to the lender. After evaluating the details you provide, the lender will determine how much you are eligible to borrow.
Through this article, you will learn about the FHA home program that will help you build your dream home.
Fixed Rate FHA loan
In this FHA loan program, the interest rate remains the same till the term of the loan. There is no change in monthly payments due to fixed interest rates. The term of a fixed rate FHA loan is 15 to 30 years.
If the mortgage rate changes, the interest rate will remain unchanged. In this case, the monthly payment will always be the same.
Adjustable Rate Mortgage
Adjustable Rate Mortgage’s interest rate is comparatively lower than the fixed rate. However, interest rates fluctuate for a certain period of time. As interest rates fluctuate, monthly payments will increase and decrease with interest rates.
For the convenience of the borrower, ARM comes with “caps” and “ceilings” that control the rise in interest rates. This limits the rise in interest rates, which prevents your monthly payments from increasing too much.
FHA Jumbo loan
Fannie Mae and Freddie Mac have government-backed restrictions, but Jumbo loans have no such restrictions. However, as such loans are expensive, it has been restricted.
The downside of Jumbo loan is that it is easy to apply but difficult to qualify. You must have a good credit card score and good downpayment to qualify for this loan. You will also be able to qualify if you need to have a low debt-to-income ratio.
FHA condominium loan
The process of FHA condominium loan is more complicated than other loans. FHA requirements are determined based on the Condo project. The borrower has to purchase the house at the designated place. So it is important to consider these issues when looking for a new home.
Energy efficient mortgage
This program encourages a potential homeowner to buy a home. This program helps to reduce the monthly utility so that the potential homeowner is able to save money. Then the homeowner can spend on repairs to the new home or existing housing with savings.
The FHA provides the necessary assistance to homeowners who wish to make further improvements or repairs to their home. It also provides additional mortgages so that the homeowner can incur the necessary costs to improve the appearance of the home. You can easily get this loan by refinancing your existing mortgage loan.
Graduated payment mortgage
These borrowers have low income but hopefully it will increase and become stable in future. This loan is the best option for them.
Growing equity mortgage
Growing equity mortgages will help borrowers who have a limited current income but hope to increase their monthly income and wish to own a home. Once they get the loan, their monthly payments are limited, and it increases over time.
The Bottom Line
This article gives you a brief overview on fraudulent FHA home program options. You have to choose the best option for you, you must consider its advantages and disadvantages. Above all, you can become a homeowner by applying for the FHA home program.