FHA guarantees the loan so lender institution doesn’t take
financial risk. FHA doesn’t give you the loan. In Housing and Urban Development
website you can find approved lenders in your area who can give you more
information about FHA loans.
There are different FHA loan programs. There of them are as
follows;
- FHA
203(b) fixed rate mortgage -15 years or 30 years loans –
- FHA
251 adjustable rate mortgage
- FHA
2-1 buy down loans.
Closing cost is most important disadvantage of FHA loans.
Borrowers usually pay 1.5 % of the loan amount at closing with 0.5 % renewal
premium.
FHA loan rates as conventional loans are affected by many
variables. If you’re looking for FHA loan, you should make good research about
loan rates and you should ask more than one finacial institution. Every lender
will give you different loan rates and give spesific solutions to your
situations. Your past credit problems also affect FHA loan rate.
FHA loan rates are generally higher than the conventional
loan programs. These rates are fluctuate frequently so there are no fixed rates
available on the net. Best thing you do is to follow up housing market and ask
your approved FHA lenders in your state.
