Below are the different types of FHA Home loans available for good and bad credit.
Fixed rate loans - Most FHA loans mortgages loans come with a fixed-rate of interest. In a fixed rate mortgage loan, your annual percentage rate (APR) stays the same during the entire loan period, which is usually 30 years. The advantage of a mortgage with a fixed-rate is that you always know exactly how much your payment will be every month for the life of your loan, and you can plan for it.
FHA Adjustable Rate Mortgage Loan Program - Most first-time home buyers are a little financially stretched, so in the beginning they want the lowest payments possible. The initial monthly payments and interest rate are low with a FHA adjustable rate mortgage (ARM), but these might change during the life of the loan. FHA uses the One-Year Constant Maturity Treasury Index (One Year CMT is the most widely used index) to calculate the changes in interest rates. A index is a measure of interest rate changes that determine how much the interest rate on a Adjustable Rate Mortgage will change over time. The maximum amount that the interest rate on your loan may decrease or increase in any one year is one or two percentage points, depending upon the ARM type you choose. Over the life of the loan, the maximum interest rate change is five or six percentage points from the initial rate, again depending upon the ARM type you choose. The advantage of a Adjustable Rate Mortgage is that you may be able to afford more house because your payment will be lower, as will your initial interest rate. Read the Explanation Of A Adjustable Rate Mortgage
FHA Rehabilitation Loan Program - Sometimes you might see a home you would like to purchase, but it needs a lot of tender loving care. FHA has a loan for repairing and rehabilitating properties that are single-family called the SF Rehabilitation Loan program (203k). You can get just one mortgage loan which includes the cost of repairs and the mortgage combined. Taking in account the cost of the work, the mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, you can complete the repairs after buying the home, and still have only a single mortgage payment.
FHA Loans For Indian Reservations and Other Restricted Lands - A family who buys a house under this program can apply for financing through a FHA approved lending institution such as a savings and loan, bank, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive financing for approximately ninety-seven percent. A party that is eligible can produce a gift for the down payment. Closing cost can be financed; covered by a grant, gift or secondary financing; or paid by the seller without reduction in value.
FHA Single Family Mortgage Loan Program For Disaster Victims - The Section 203(h) program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
FHA Graduated Payment Mortgage Loan Program - Section 245 enables a household with a limited income that is expected to rise to buy a home sooner by making mortgage payments that start off small, but gradually increase over time.
FHA Growing Equity Mortgage Loan Program - Section 245(a) enables a household with a limited income that is expected to rise to buy a home sooner by making mortgage payments that start off small, but gradually increase over time. The higher payments are applied to lower the owed principal on the mortgage and thus shorten the term on the mortgage.
FHA Mortgage Loan Program For Declining Areas - Section 223(e) provides mortgage insurance to enable people to rehabilitate or purchase housing in declining, older urban areas. Section 223(e) can be used only to supplement other HUD mortgage insurance programs.
FHA Energy Efficient Mortgage Loan Program - The Energy Efficient Mortgages Program (EEM) helps homeowners or home buyers save money on utility bills by enabling them to finance the cost of adding energy-efficiency features to existing or new housing as part of their FHA-insured home refinancing or purchase mortgage.
FHA Home Equity Conversion Mortgage Program For Senior Homeowners - The Home Equity Conversion Mortgage program enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for a fixed term, or life, or in a lump sum, or through a line of credit.
FHA Mortgage Loan Program For Condominium Units - This program insures the loan for a person who purchases a unit in a condominium building.
FHA Manufactured Home Loan Program - This program insures mortgage loans made by private lenders to buyers of manufactured homes and the lots on which to place them.
FHA Property Improvement Mortgage Loan Program - The Title I program insures loans to finance the moderate or light rehabilitation of properties, as well as the construction of nonresidential buildings on the property. This program may be used to insure such loans for a period up to twenty years on either a multifamily or single property. The maximum loan amount is $25,000 for improving a single-family home or for building or improving a nonresidential structure.
FHA Good Neighbor Next Door Mortgage Loan Program - Pre-Kindergarten through 12th grade teachers, law enforcement officers, and emergency medical technicians/firefighters can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for thirty-six months as your sole residence.
Streamline FHA Mortgage Loan Program - FHA has permitted streamline refinances on insured mortgages since the early 1980's. The "streamline" refers only to the amount of underwriting and documentation that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction.
Streamline FHA Limited Repair Mortgage Loan Program - The Streamlined (k) program is intended to facilitate uncomplicated improvements and/or rehabilitation to a home for which planned consultants, architects and/or engineers are not required.
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