Mortgage RefinancingHome Loan Mortgage Refinancing, Home Equity Line of Credit, Debt Consolidation, Home Purchase Mortgage Loans |
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FHA Loans / Mortgages It is common for FHA loans to have lower interest rates than conventional loans. The fixed FHA interest rates are set by the Federal Reserve Board. The interest rate for adjustable rate mortgages is set by the one year constant maturity treasury index. This rate is adjusted annually. Not only are FHA interest rates lower, they are also easier to qualify for. The past two years of employment history, income history, and credit history are the most important items in qualifying for the loan. Although it is easier for an individual to qualify for FHA mortgages, the requirements for the property to qualify are more strict than conventional loans. The FHA will send an inspector to assess the property before the loan is approved. Peeling paint, water damage, roof leaks, mildew/mold, and other repair items must be corrected for the loan to be approved. The government does not want to insure a loan on a home that is in poor repair and may sustain additional damage in the future if repairs are not addressed. Many first time home buyers apply for FHA loans because of their advantages. What home buyers should keep in mind though is that on their next home purchase or mortgage refinancing attempt they must obtain a conventional loan. If they do not meet conventional loan requirements they will be unable to refinance their mortgage or purchase a new home. |