An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender. FHA insured loans are a type of federal assistance. They have historically allowed lower-income Americans to borrow money to purchase a home that they would not otherwise be able to afford. Because this type of loan is more geared towards new house owners than real estate investors,
|FHA 30-year fixed||3.50||4.50|
|FHA 15-year fixed||4.00||5.00|
APR- Annual Percentage Rate
Frequently Asked Questions
What is FHA loan?
Answer: An FHA (Federal Housing Administration) loan is a U.S. government backed mortgage loan focussed towards new home buyers and has more flexibile lending requirements.This however means that the interest rates are somewhat higher as compared to other similar loans.
What is FHA mortgage insurance?
Answer: FHA mortgage insurance insures FHA loans.
How is FHA loan different from other loan types?
Answer: FHA loans are different from conventional loans in the sense that the house must be owner-occupant for at least a year.
How can FHA loan benefit me?
Answer: FHA loan can benefit you in two ways:
- Lower downpayments: An FHA mortgage may require a lower down payment (as low as 3.00 percent).
Note: The interest rate however could be a bit higher than that of a conventional mortgage loan.
- Lower credit scores: First time home buyers can quality for FHA loans even with lower credit scores.