Many first time home buyers must overcome several obstacles before securing a home loan. For anyone who struggles to qualify for a traditional fixed-rate mortgage, obtaining an FHA fixed rate loan through the U.S. Department of Housing and Urban Development (HUD) might provide the assistance needed.
Why Obtain an FHA Fixed Rate Mortgage?
An FHA fixed rate mortgage works the same as any traditional fixed rate mortgage, but it is also backed by the federal government. Not only will an FHA fixed rate loan lock the interest rate down for the entire life of the loan, making it easier to budget for a home purchase, but also provide a multitude of special benefits.
Since 1934, the FHA has been helping Americans secure mortgages to buy homes, including with FHA fixed rate loans. The benefits of securing an FHA loan is that there are low down payments, low closing costs and only adequate credit is needed to qualify. Those who are approved for the loans may be able to put down as little as 3 percent on the property, as well as have the closing costs and fees included in the loan, making it easier to pay off the total cost over time.
Before applying for any type of mortgage, whether you are looking to find a loan backed by the FHA or some other type of agreement, it is best to take the time and research your options thoroughly.
Determine what you can afford ahead of time by considering how much money you can contribute towards a down payment, your current income and your credit history. Once you have an approximate figure that works for you, research and compare the different lenders to see what kind of loan options may be available to you.
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