What is an FHA Adjustable Rate Mortgage (ARM)?

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.

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.
• 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.

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