The Current FHA Mortgage Rates
The FHA was produced in 1934, and since that time it has insured over 35 million loans for borrowers, more than any other organization. To clarify, the FHA does not fund your loan, they insure it. They make it safe for lenders to do the loan because the FHA will pay it off if you default.
In 2006, President Bush convinced Congress to pass the FHA modernization proposal which made it possible for the FHA to help more deserving families buy homes. The FHA mortgage rate at that time was 5.5%.
Today’s current FHA mortgage rates are as follows. The interest rate is 6% for a 30 year fixed loan with 1.875 points. The interest rate for a 15 year fixed loan is 6% in addition, but with 1.25 points.
An FHA loan may be the best option for you as a borrower for a associate of reasons. First, you don’t need stellar credit to quality for a loan. Since the whole sub chief fiasco, lenders are a lot tighter about who they fund loans to. Having an average or above average credit score is no longer good enough. However, depending on your debt to income ratio, your income, and a few other factors, it is often good enough to obtain an FHA loan.
Another thing that holds people back is a bankruptcy. FHA loans consider people with a past bankruptcy, again depending on other factors. The best way to ensure that you will be financed, if you have bad credit or a bankruptcy, is to meet with a credit repair specialized. They are often able to help enhance a credit score closest, and also ensure that you take the right steps to lower your debt to income ratio.
An FHA mortgage often requires a down payment of an average to low amount. This is another huge plus for certain borrowers. already if you have a lot of money to put down, often it makes better sense to use that money to make more, by certain interest bearing investments. In short, the FHA is in place to help those who are responsible and deserving, own a home.