October 16, 2019

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Articles Tagged With: FHA ARM

FHA Home Loan Interest Rates Lower

How To Apply For An Adjustable Rate Mortgage

Do you know how to apply for an FHA adjustable rate mortgage loan (ARM)? The loan limits are the same on FHA ARMs as they are for fixed-rate mortgages, but your strategy for the loan should be quite different. It’s important to apply for an adjustable rate loan with a purpose; if you aren’t sure why a fixed rate loan is better for some than an ARM, you aren’t ready for an ARM loan application yet. The government’s Consumer Financial Protection Bureau has published some sound advice for house hunters interested in an adjustable rate mortgage; that advice includes knowing when you would want an ARM loan and when you would not want one. The basic difference between a fixed rate FHA mortgage and an adjustable rate is that with | more...

 
Home Values Dropping: FHA Loan Rules You Should Know

Do You Have An FHA Adjustable Rate Mortgage?

Do you have an FHA adjustable rate mortgage, also known as an FHA ARM loan? Is your introductory rate about to expire? Borrowers with adjustable rate mortgages may get a bit nervous when the end of their introductory interest rate period, also known as a “teaser rate” period is about to and and the first adjustment to the ARM loan’s interest rate becomes due. Borrowers can negotiate an introductory rate that lasts as little as one year and as many as 10 years with the lender, but eventually that initial rate will end and the first adjustment will come due. If you have an FHA ARM loan you may be eligible for either a credit-qualifying Streamline Refinance loan or a non-credit qualifying FHA Streamline refi. In many cases FHA streamline | more...

 
FHA Refinance Options

Get Out Of An Adjustable Rate Mortgage With An FHA Refinance Loan

Are you currently paying on an Adjustable Rate Mortgage (ARM) and concerned about your next interest rate hike? It’s possible to end the uncertainty about your mortgage payments and how the next interest rate increase will affect them by refinancing into a fixed-rate FHA mortgage loan. FHA Refinance Loans Are Available As Fixed Rate Loans You can refinance an existing FHA mortgage or a non-FHA loan such as a VA mortgage, conventional loan, etc. FHA loans are designed to help borrowers get into affordable mortgages using your current income and FICO scores to qualify. If you have an FHA adjustable rate mortgage, you can refinance to an FHA fixed-rate loan using the FHA Streamline Refinance loan program. The main feature of the FHA Streamline refi is that it generally requires | more...

 
Rent Or Buy? Arguments For Purchasing A Home With An FHA Mortgage

Does FHA Offer Adjustable Rate Mortgages?

Does FHA offer adjustable rate mortgages? When you shop around for a participating FHA lender, be sure to ask about this type of FHA loan, sometimes known as an FHA ARM. Not all participating lenders may offer an FHA adjustable rate mortgage, but for those working with a lender that does, it is important to know some basics about the mortgage and how FHA loan rules govern the adjustments in the interest rates. Borrowers who apply for an FHA ARM loan must sign a disclosure statement that outlines the terms and conditions of the mortgage. The rules that govern FHA ARM loans are found in HUD 4000.1, and those rules begin with a definition of what the FHA considers to be an ARM loan. “An Adjustable Rate Mortgage (ARM) refers | more...

 
Myths About Home Loans and Credit

Where Can I Refinance An FHA Loan?

Where can I refinance an FHA loan? Many want to know what their FHA refinance options are, but there are some misconceptions about refinancing that should be cleared up so borrowers understand all their options and not just the most obvious choices. For example, did you know you can refinance an FHA mortgage loan without an FHA-required credit check? (More information on that transaction is below.) The most basic answer to the question is that you may refinance an FHA mortgage at any participating FHA lender who offers the type of refinancing you seek, and your options may include loans that feature cash back, those which have no cash back permitted but allow a no-credit-check transaction, etc. But there’s more to this issue than just who and where you choose | more...

 
What Can I Rehab With An FHA 203(k) Mortgage?

What Is An FHA Loan Rate? FHA ARM Loans and Fixed Rate FHA Mortgages

What is an FHA loan rate? We discussed this question in our last blog post-that the FHA and HUD do not set or regulate interest rates on FHA mortgages, the ability of the borrower to buy discount points in order to lower the FHA loan rate up front, and how a borrower’s FICO scores can affect the kind of mortgage rates offered by the lender. But there is still an important issue to cover-the difference between how fixed rate FHA mortgages work and how FHA adjustable rate mortgage loans (ARM loans) work. What are the primary differences between an FHA fixed-rate loan and an FHA ARM loan? FHA Fixed Rate Mortgage Loans FHA fixed rate mortgages feature one interest rate, negotiated up front between the borrower and lender. Once the | more...

 
FHA Home loan appraisal rules

FHA Adjustable Rate Mortgages in 2017

Are you looking for an FHA adjustable rate mortgage in 2017? FHA single family home loans come in a variety of types including fixed-rate loans and FHA adjustable rate mortgages. The rules for these loans, commonly referred to as FHA ARM loans, are spelled out in HUD 4000.1, the FHA loan handbook. FHA adjustable rate loans can be different than their conventional counterparts, starting with certain restrictions on how often the interest rate may change. Before we dive into that issue, let’s examine how HUD 4000.1 defines the FHA ARM loan: “An Adjustable Rate Mortgage (ARM) refers to a Mortgage in which the interest rate can change annually based on an index plus a margin.” Your loan officer is required to provide a disclosure form, which must be signed, that | more...

 
Will FHA Loans Let Me Rent Out My Home?

Facts About FHA Adjustable Rate Mortgages

If you are considering your FHA loan options, at some point you’ll likely consider your choices between mortgage loan interest rate options. Qualified borrowers can choose between a fixed-rate FHA mortgage or an adjustable rate loan. Fixed rate loans seem simple and straightforward enough. The borrower applies for a home loan at an interest rate negotiated between borrower and lender. But what about adjustable rate mortgages? These loans, often called ARM or FHA ARM loans, feature an introductory rate, and a higher rate that begins at a specified point in the course of the mortgage. According to the FHA loan rulebook, HUD 4000.1, “The Mortgagee must establish the initial interest rate and the margin. The margin must be constant for the entire term of the Mortgage.” How long does your | more...

 

What Is An FHA Adjustable Rate Mortgage?

The government’s consumer protection agency, The Consumer Financial Protection Bureau (CFPB), has a page on its official site explaining the differences between a fixed rate mortgage loan and an adjustable rate mortgages, sometimes known as ARM loans. According to the CFPB, “The difference between a fixed rate and an adjustable rate mortgage, is that for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down. With a fixed rate mortgage, the interest rate is set when you take out the loan and will not change”. Does the FHA single-family home loan program offer such a loan? Can borrowers apply for an FHA ARM loan with a participating lender? Yes. Any | more...

 

FHA Home Loan Interest Rate Questions And Answers

There are many questions about FHA home loans, especially where interest rates are concerned. Do you know how the FHA loan process works when it comes to negotiating rates or choosing a fixed rate or an adjustable rate mortgage loan? Here are some of the most common questions and answers in this area: How does the FHA set interest rates on FHA mortgage loans and refinance loans? In general, the FHA actually does not set or regulate interest rates on FHA home loans. For certain loan products there are restrictions on how interest rates can be changed or modified, and there are rules governing the purchase of discount points in order to lower mortgage loan interest rates. But the rates for an FHA mortgage are negotiated between the lender and | more...