FHA Mortgages: Changes in 2015 and Still Popular
In January of 2015, President Obama announced that FHA would reduce the amount it charges for mortgage insurance and as a result, FHA loans are cheaper for people to obtain than they were in the past. It wasn’t like the FHA loan program was unpopular before – in the last few years, FHA loans have been super popular with homeowners wanting to finance their home purchase. Getting an FHA loan is popular for new first time home buyers as well as those who have been through a short sale, foreclosure or other financial hardship in the past and are looking to get a mortgage to get back on track. For those people who currently have an FHA loan, the FHA streamline refinance is a popular option that reduces the amount of paperwork required and allows homeowners to reduce their interest rate and monthly payment.
FHA Loan Programs
The most popular FHA loan is the FHA 30 year fixed rate mortgage, but that isn’t the only term that FHA mortgages are done for or the only loan program that is possible. FHA loan terms often come in 10, 15, 20 or 25 years ”“ depending on the FHA approved lender that you are working with. Popular FHA loan programs include:
- FHA streamline refinance
- FHA 203k rehab loan
- FHA adjustable rate mortgage
- FHA fixed rate mortgage
- FHA kiddie condo loan
Regardless of which FHA loan program is right for you, HUD has approved a network of FHA approved lenders who can help you. Not every lender is FHA approved, but if a lender is FHA approved, it means that they are regularly subjected to strict audits by the government and most likely are going to do their best to make sure you get in the right FHA loan program for your needs.
Getting The Best Deal on an FHA Loan: Shop Around
To easiest way to get the best deal on an FHA loan is to shop multiple FHA lenders who can help you. Each lender will have their own tweaks to the FHA guidelines and may require certain things (such as a higher credit score, a higher down payment, multiple appraisals, etc) as well as each lender will have different rates each day. Because of the different tweaks and the constantly changing mortgage rate marketplace, it is a great idea to get (in writing of course) multiple quotes from multiple lenders.