FHA loans are some of the most popular options for borrowers. Guaranteed by the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development (HUD), these loans feature easier qualifying requirements, lower down payments, and lower closing costs.
Private mortgage insurance is mandatory with FHA loans to safeguard lenders if a borrower defaults on their loan. FHA backs the following loans:
- Fixed Rate FHA Loan
This is ideal for borrowers, such as newlyweds, fresh graduates, or those still finishing their education, who wish to buy a home, but don’t have the necessary funds for the purchase.
- Adjustable Rate FHA Loan (ARM)
This type of FHA loan is perfect for families with low to medium net incomes.
- FHA Refinance Loan
Mortgage experts from Utahloanpros.com say the government wants to help homeowners keep their homes even in hard times. Some borrowers can’t handle sudden increases in their interest rates that come with having an ARM. This refinance loan can aid them so they won’t have to worry about foreclosures.
- FHA Energy Efficient Loan
This mortgage type aids potential and current homeowners in lowering utility bills by incorporating energy efficient home improvement costs into their loans.
- Reverse FHA Loan
This is for homeowners who are at least 62 years old. This FHA loan will allow them to convert their home equity into credit or income.
- FHA Growing Equity Loan
Borrowers with limited income who expect an increase in their monthly salary can use this loan to buy a home by making lower mortgage payments that will be raised slowly over time.
- FHA Graduated Payment Loan
Borrowers who currently have a low to medium net income, but are expecting an increase in their income in five to 10 years can use this loan.
- FHA Condominium Loan
This is for borrowers looking to buy a condominium unit.
The government backs different kinds of mortgages. To learn more about each type of loan and find out which one fits your personal requirements, speak with your mortgage lender.