FHA Loans, like many loan programs, offer a variety of alternatives for home buyers both new and experienced. In this blog entry, we’ll be looking over the best ways you can take advantage of these alternatives for your eventual FHA loan plan!
FHA loans are different from other types of home loans. The main difference being that they are insured by the federal government through The Federal Housing Administration (FHA). Alongside that however, they also carry a wide array of loan options to choose from as well, including the following:
FHA Loan Options
FHA Adjustable Rate Mortgage (ARM):
An FHA ARM gives new homeowners the chance to set the mortgage rate for five years, before said rate can fluctuate, at a maximum of 2% per year. This type of FHA home loan allows buyers to utilize lower rates at the onset of their mortgage.
Graduated Payment Mortgage:
These types of FHA Loans are made specifically for home buyers with low to moderate income. The graduated payment plan allows for buyers to start with smaller loan payment amounts at first, with future payments being based on increased income within the years to come.
Fixed Rate FHA Loan:
Due to the small down payment required to start, FHA loans make sense for borrowers who don’t exactly have a large down payment saved, but want to buy a home A fixed rate FHA loan allows the buyer to budget monthly expenses since said payment remains the same over the life of the loan
FHA Condominium Loans:
FHA Condominium loans follow the same path as a Fixed Rate FHA Loan would, but instead of purchasing a single-family residence, your purchase would be going towards a condominium.
These options are just some of many that you can expect from when it comes to FHA Loans, and at Mortgages Done Right, we can help. Our team of experienced brokers can help you find a home loan that addresses all your individual needs and circumstances, so don’t hesitate to call us and learn more about our services. We hope that you found this blog entry useful, and if you have any inquiries about FHA loans and other mortgage related issues, feel free to call us! We’d be happy to answer any of your questions. Until next time, have a lovely day.