Mortgage Q&A: What Are Current FHA Rates?
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FHA mortgage rates will vary based on a number of factors. There are fixed rates and adjustable rates, down payments, credit scores of all levels and other factors that will affect the interest rates. The best thing to do is contact First Bank where one of our loan specialists can help answer what current FHA mortgage rates are available to you.
What are FHA Mortgages?
Before you explore current FHA rates, it is important to understand what FHA mortgages are. To start, FHA stands for Federal Housing Administration. According to the U.S. Department of Housing and Urban Development, “FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans.”
What are FHA Mortgage Loan Requirements?
Although some requirements can vary, FHA requirements usually include:
A decent credit score. To receive a FHA mortgage, applicants should have a credit score of at least 580. Applicants with a credit score below 580 may still be eligible for a FHA loan, but will most likely be required to put down a 10 percent down payment.
Verifiable income. According to FHA.com, “FHA loan rules for income have more to do with stability of income, the ratio of monthly financial obligations compared to that income, and the reliability of the paychecks rather than scrutinizing the amount itself.”
Why Get a FHA Mortgage?
In general, FHA mortgages are easier to qualify for than conventional loans, require smaller down payments, and have lower interest rates. For buyers who have decent credit, and who do not have a lot of money to put down, an FHA mortgage can provide the chance to buy a home — a chance that many may otherwise lack.
Call First Bank Today
Now that you have a basic understanding of FHA mortgages, you can inquire with First Bank about what the current FHA rates are. We have representatives who are available by phone Monday through Friday to assist you. Give us a call today to get started.
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Sources:
HUD: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory
FHA: http://www.fha.com/fha_credit_requirements
