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FHA Guidelines

The Two Main FHA Loan Guidelines Are Based on the Amount of Loan and Your Income

fha-guidelines If you are a first time homebuyer longing to buy your first dream house, then this is the right time to do so. Why? Because now Federal Housing Administration (FHA) interest rates are at an all time low. Currently, the FHA loans structure allows you to pay low interest rate, minimum down payment, and low closing rates. The rates are some of the lowest rates ever offered!

Taking FHA home loans are generally simpler than the conventional ones. It is just that you have to fill in more paperwork; but you’ll get help from the FHA in doing this. So far the FHA, backed by the federal government under the HUD (Housing and Urban Development) has helped hundreds of thousands people to own their dream house.

There are generally two loan categories offered by the FHA: the single family having 1-4 unit homes and a multi-family having 5 or more unit homes. Basically, there are two main FHA loan guidelines, one is based on the amount of your loan, and the other is based on your income. But, the FHA also consider other compensating factors such as credit history so the possibility of you having a house is better than if you go to conventional lenders.

If you’re taking the FHA home loan, you get an option of going for a buy down on the low FHA rates. When going for a 2-1 ratio, you get an option by which you can reduce your FHA mortgage interest rates by 2% in the first year, 1% in the second and follow it up by 0% from the following year, plus an option of permanently lowering your rate of interest. If you were paying a 6% loan interest, you can lower it to 5.5%. But, to get this you have to meet a few guidelines laid by the FHA. Though this more preferred than a buy down option, if your seller pays for the permanent buy down and the buyer gets to occupy the property for three years.

FHA interest rates for loans depend mainly on your current credit. Although excellent credit score is not what applying for an FHA loan all about, having a excellent credit record and FICO score will grease your path into getting the FHA home loans easily at low FHA interest rates. If you go for a fixed-rate FHA home loan, you can always go for refinancing when interest rates go down. The FHA streamline refinance is the best process to make borrowers lower their interests.

The low FHA interest rates from the FHA have helped families with low or moderate income to get the opportunity to buy their dream home. FHA mortgage loans are far simpler to buy for those with low or moderate income, and if the interest rates are compensated, then the FHA home loan are the best deal around.

Also read: FHA Mortgages and FHA Financing

FHA Home Mortgage Loan Interest Rates

FHA Guidelines

The Two Main FHA Loan Guidelines Are Based on the Amount of Loan and Your Income

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