FHA loan programs are more popular than ever, thanks to their attractive mortgage rates, low down payments, and easy-to-qualify-for requirements. The Federal Housing Administration, an agency within the U.S. Department of Housing and Urban Development (HUD), has been insuring mortgage loans to fund the purchase of homes throughout the U.S. since 1934.

2. are more popular
than ever, thanks to their attractive
mortgage rates, low down payments, and
easy­to­qualify­for requirements.
To date, the FHA administers 15 types of
mortgage programs for borrowers.
FHA loan programs

3. FHA 30­Year Fixed Rate Loan
FHA Adjustable Rate Mortgage
FHA 203k Loan
FHA 2/1 Buydown
FHA Streamline Refinance
FHA Cash Out Refinance
Some of the more common types of
FHA loans used for purchasing, refinancing or
rehabilitating homes are as follows:

4. 30This is the most common and traditional type of FHA­backed
mortgage for single­family homes.
The FHA 30­year fixed rate mortgage is ideal for borrowers who:
Intend to stay in/occupy their homes for years to come
Like their mortgage payments to remain the same for
budgeting purposes.
Relatedly, take comfort in the idea that monthly payments will
never change.
FHA30-Year Fixed Rate Loan

5. ARMthese mortgage loans are characterized by having an interest rate
that changes in the course of the loan. FHA’s umbrella of ARM
programs consists of 1­year ARM variant and four types of Hybrid
ARM products.
Types of ARMs
Adjustable Rate Mortgage Loans (ARMs)
1­ and 3­ year ARMs
5­year ARMs
7­ and 10­ year ARMs

6. 203KThe FHA’s 203k loan program is sometimes referred to as
“home improvement loan” or “rehab mortgage loan”
The 203k loan has two varieties:
FHA203K Loan
streamlined 203k that allows for not so extensive home­
related projects with costs not exceeding $35,000
standard 203k loan that is intended for structural changes
such as repairing a structural damage and total repairs that
exceed $35,000.

7. 2/1This is applicable to fixed rate
mortgages, whether 15­ or 30­year
fixed interest rate loans. This
“buydown” allows the borrower to
temporarily pay mortgage payments
at lower rates for the first two years of
the loan.
FHA2/1 Buydown Loan

8. If you hold an existing and current (not delinquent) FHA loan and
want to refinance it for lower monthly payments, you may be
eligible for this.
FHA Streamline Refinance involves little paperwork so it speeds
up the refinancing process to weeks and lenders may offer “no
cost” refinancing transactions.
FHAStreamline Refinance

9. The FHA’s cash out refinance is likened to opening a loan with a
bigger balance than what is currently owed and taking out the
excess proceeds. Borrowers previously can qualify for a cash out
refinance of up to 95 percent of a home’s LTV or loan­to­value
amount.
As a cash out refinance is deemed as a riskier transaction
compared to a streamline refinance, borrowers are subjected to
more documentation by the lenders.
FHACash Out Refinance

10. Finding the
Best FHA Lender
BestFHALender is a one­stop shop offering useful
information about FHA loans and enabling customers
to shop for multiple lenders.
CLICK HERE
TO LEARN MORE

11. Information Provided by
Justin Mchood
He is Americas Mortgage Commentator
and has been providing Mortgage
commentary for over 10 years

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