FHA ARM Loans

The FHA Adjustable Rate Mortgage (ARM), 1 year ARM loan is one of the best adjustable rate mortgages currently available. It is available 1-4 unit homes, as well as condominiums, townhomes, and PUDs.

• One benefit of the FHA Adjustable Rate 1 Year ARM is that it does not offer an initial low "teaser" rate like most other adjustable rate mortgages, therefore it will normally start at a slightly higher rate than most other adjustable loans. Thus you will most likely not have a large first adjustment
• The yearly interest can rise or decrease no more than 1% per year vs. 2% for a conventional loan.
• The lifetime cap of the FHA adjustable rate mortgage is no more than 5% over the initial start rate vs. 6% for a conventional loan.
• Therefore, an FHA ARM can take 5 years before reaching its maximum rate vs. a conventional loan can cap in only 3 years.
• FHA's adjustable rate mortgage is based on the economic indicator index called the 1-Yr. T-Bill. You can find the current T-Bill rate on many websites like HSH Associates or in the Wall Street Journal

Example:
Index=1.3% (as of Oct 2003)+Margin of 2.25%=Fully Indexed Rate=3.55%

Other benefits of the FHA ARM (adjustable rate mortgage) is that you can "streamline refinance" to a FHA fixed rate mortgage at anytime.

Borrowers must qualify for one-year ARMs using the mortgage payments based upon the contract or initial interest rate plus 1 percentage point (i.e., the anticipated maximum second-year interest rate) if the loan-to-value ratio is 95 percent or greater

If you have any questions, please send an e-mail to: FHA@more2lend.com (or) contact us at 800-310-7577.

 

	FHA Loan Prequalification Click Here
	FHA Loan Prequalification Forward to Your Client Click Here

*24 hour FHA loan approval is contingent upon receiving all pertinent income, collateral documentation and a signed authorization to request credit. Once all requested documentation is received, we are able to request credit and submit for an automated underwriting decision, final approval is subject only to a signed purchase contract, clear title and appraisal. If we are unable to receive an Approve/Eligible the borrower is given the option to submit for a manual underwriting which can take approximately 7-10 days.