FHA ARM
The FHA ARM combines the low initial interest rate of an adjustable rate
mortgage with the low down payment and liberal qualifying ratios of FHA-insured
mortgages to produce one of the most affordable loan products. The FHA ARM
also offers exceptional interest rate protection with annual and lifetime
interest rate caps that are lower than most ARM programs, as well as an extended
period before the first rate change (up to 18 months, depending on the closing
date). The FHA ARM also offers a lower margin than other ARM programs, which helps to
hold down rate changes. In some cases where my client was unable to qualify for
another program, the FHA ARM allowed them to buy their home
FHA ARM Program fills these needs:
| Borrower Need |
Feature |
| Home Affordability And Easy Qualification |
LTV less than 95% - qualify at the FHA ARM note rate.
Choosing a higher margin allows you to get a lower initial rate. |
| Payment Security |
First adjustment occurs 12 to 18 months after the first installment
payment is due.
Interest rate on an FHA ARM cannot increase more than 1% per year or more than 5% over
the life of the loan. |
| Speed |
easier documentation requirements
Prequalification fast and free |
| Special Advantage |
Assumable with qualifying
May refinance inexpensively into a fixed rate with lower closing costs. |
Read more about FHA ARM compensating
factors
Read more about FHA ARM
Closing Costs I have included a page on how to calculate your qualification ratios.
I have included a page on documentation
requirements. Learn more about
improving your credit scores As a Certified Mortgage
Planning Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your consumer and mortgage debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
 Prequalify for your
FHA ARM.
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