FHA Mortgage Rates

The Federal Housing Administration (FHA) has been helping American families become first time homeowners since 1934, and today they have made it easier and more affordable than ever to realize the dream of homeownership. The FHA has done this by extending some really great benefits to those who would not otherwise be able to qualify for conventional loans, such as low income families or individuals with poor credit ratings. Here is breakdown of the FHA mortgage rates.

Down Payment

Conventional loans typically charge anywhere from 5 to 20% for a down payment, which can add up very quickly if you are looking to buy a big property for your family. With an FHA Loan, you can qualify for a loan with a down payment as little as 3% of the total cost. With this low rate, it’s possible for young families to qualify even if they haven’t spent years putting savings away.

Closing Costs

For first time home buyers, the closing costs associated with a new loan can be quite a financial drain. The FHA aims to ease this financial burden by helping keep costs low, and even offering to have the closing costs built into the price of the loan. It is possible for borrowers to have an additional 6% built into the loan to go towards the closing fees.

Interest Rates

The interest rates you will pay as a borrower will vary depending on a few factors such as the current mortgage market rate and your financial background. However, because you are insured by the Federal Government, lenders are often willing to give you a very competitive interest rate. Even if you have a rate that is higher than you like, it is possible to refinance your FHA Loan in the future for a rate that is lower than what you are currently paying.

Where to find a lender

Because the FHA does not issue the money itself, you will need to find a private lender to obtain your loan. You can choose between a bank, savings & loans association or mortgage company, as long as they participate in the FHA Loan Program. Before you start house hunting, it’s a good idea to get pre-approved for a loan. By taking a minute to fill out our free online form, you will be on your way to getting that house of your dreams. Get started today!

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