FHA Adjustable Rate Mortgage

[?] Subscribe To
This Site

What is an FHA Adjustable Rate Mortgage (ARM)?

FHA Adjustable Rate Mortgage for Single Families

FHA’s single family ARM (Adjustable rate Mortgage) program provides mortgage insurance for a person to purchase or refinance a principal residence at a lower initial interest rate. A lending institution, such as a mortgage company, bank, savings and loan association, funds the mortgage loan and HUD insures the mortgage.

What are the eligibility requirements?

You must meet standard FHA credit qualifications.

You are eligible for approximately 97% financing. You are able to finance closing costs and the uppermost mortgage insurance premium into the mortgage. You will also be responsible for paying an annual premium.

ARMS can only be used in conjunction with Sections 203(b), 234(c), and 203(k).

The index used to determine the interest rate is the U.S. Treasury Security adjusted to a constant maturity of one year.

Eligible properties are one to four unit structures.

If you would like to know more about the these types of programs, just go to the contact me page and email me. I’ll be happy to answer any questions you may have.

________________________________________________________________

If you would like to leave What is an FHA Ajustable Rate Mortgage and return to our Finding the Best FHA Home Loans main page, click here.

Or return from What is an FHA Adjustable Rate Mortgage (ARM)?, to First Time Home Buyer Solutions home page.