What is the FHA Adjustable Rate Mortgage (ARM). Of the ARM mortgage loans out there, FHA home loans has a cool one. Find the best information on how this adjustable rate mortgage works here.
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 for this Adjustable Rate Mortgage?
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.