Federal Housing Administration (FHA) loan rates continue to remain at historic lows, despite slight increases this week. Lenders are offering good mortgage rates for FHA backed loans. FHA 30 year fixed rates for as low as 3.75% and upwards to 4.25%. 15 year fixed rate FHA mortgage rates can be found for as little as 3.5% and up to 4.00%.

5 year Adjustable Rate Mortgages (ARM’s) continue to be the lowest FHA mortgage rates on the market. FHA guaranteed ARM’s are being offered between 3.00% and 3.25% by some lenders. FHA guaranteed loans on approximately one-third of the homes purchased last year.

In addition, Congress has recently voted legislation in favor of raising the loan limits of what FHA may guarantee for home mortgages. If the president signs the legislation, the maximum loan guarantee amount will be back up to $729,000 up from $625,500. Though the top loan amount had been at the higher rate, the limit expired on October 1.

The increased loan limit is in part due to the fact that FHA reported a delinquency rate of 1.9 percent, the lowest rate reported in more than 5 years.

The fha mortgage rates are expected to remain low in the foreseeable future, as the home real estate market continues to remain slow. Though home sales unexpectedly increased slightly in October, there remains a surplus of homes on the market.

The good mortgage rates are a benefit to qualifying home purchasers, who can continue to take advantage of historically low rates. A 1 % difference on a $300,000, 30 year mortgage can mean a savings of more than $100,000 in interest payments over the life of the mortgage. The low interest rates offered by fha continue to make the home purchase more affordable. Most FHA customers have an annual income of less than $100,000 and 86% have an income less than $150,000.

FHA provides more relaxed lending standards than many private mortgage lenders, due to guarantees by the federal government. Purchasers can buy a home with as little as 3.5% of a down payment, and under certain circumstances, the down payment may be a gift from a friend or relative. With good mortgage rates continuing to be offered, many may consider taking advantage of the low rates and consider home ownership through an FHA loan.