Ready to buy your first home? Working with limited income or money for a down payment? A government-insured Federal Housing Administration (FHA) home loan could the right solution for you. FHA loans have been helping people buy homes, whether the first or the fourth, since 1934.
FHA home loan programs typically help first-time homebuyers, seniors or others with limits on what they can afford. FHA home loans offer:
There are two types of fixed FHA mortgage rates (offer the same rate throughout the life of the loan):
Both options offer the same interest rate stability, but the 15-year term has higher monthly payments, giving you a faster way to build up home equity. You can use this higher equity as a down payment when you move to your next house.
An FHA adjustable rate mortgage (ARM) lets homeowners pay a low introductory interest rate for the first few years, then move to a new home before it adjusts, possibly upwards. If you know this is a starter home that you will leave in a few short years, then an ARM could make sense for you. McMullen Group offers the 5-year hybrid ARM (fixed for the first 5 years, change annually after that, annual cap of 1 percentage point and a lifetime cap of 5 percentage points.)