4.25% 30 Year Fixed Rate
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30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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FHA Mortgage – Weekly Update

The Federal Housing Administration (FHA) belongs to a part of the United States Department of Housing and Urban Development (HUD). The FHA is not a bank and they do not lend money. An FHA loan is insured by the government, meaning if a borrower defaults on the loan, the lender will be able to recover their losses. Since the loan is insured, the lender is able to offer low down payment options, low closing costs, and easier credit qualifying. Even with lenders tightening their credit requirements, the FHA loan product is still among the most popular loan options today. During the real estate boom, FHA loans were a rarity. In today’s market, FHA loans have nearly quadrupled in a matter of three years.

Contrary to what many people think about FHA mortgage rates, they are very competitive with conventional mortgage rates. Mortgage rates have been at historical lows since the economy plummeted. FHA loans can be adjustable mortgage rates or fixed mortgage rates. The fixed mortgage rate makes up the majority of FHA loans today. Current FHA mortgage rates are remaining around an average of 4.48% for the 30-year FHA mortgage loan product. The current fixed mortgage rate is averaging around 4.53%.

When seeking an FHA loan product, it is important to find an FHA-approved lender or broker. They are the experts and are educated to guide the consumer through the process. There are FHA loan limits which vary by area. Some places have loan limits below $300,000 while others are as high as $729,000. The down payment required may be as low as 3.5% and may be a gift. FHA also generally allows a slightly higher debt-to-income ratio than conventional mortgage options. FHA does not have a minimum credit score guidelines, but each lender may have their own credit score guidelines.

These historical low rates will not last forever. There are talks of changing the FHA loan program by requiring higher down payment, higher credit scores, and increase in FHA insurance premium costs. Whether looking to refinance or buy a home—today is a great day to take advantage of these historical interest rates.