Understanding FHA loan types

There are several types of FHA loan products. Basically, they can be broken down into new loans and refinance products. New mortgages further divide into traditional loans and adjustable rate mortgages. Traditional loans will have a single, fixed interest rate over the term, or life, of the loan and can be used to finance up to 97% of the purchase price of a home. The term is either 15 or 30 years. Adjustable rate mortgages, which have acquired a bad reputation due to unscrupulous practices by some private lenders, allow for a lower initial rate and, therefore, lower payments. After two or three years, depending on the product, the rate will change. This type of loan is best for those families needing to keep their monthly mortgage payment as low as possible. FHA refinances are designed for homeowners looking to move from their existing loan into a more favorable product.

Regular and Streamline FHA Refinances

Some homeowners need to get out from under a bad adjustable rate mortgage (sometimes simply referred to as an ARM) while others would like to take advantage of equity that has accumulated in their house and still others merely qualify for a lower rate. There are FHA refinances available for all of these situations. The Streamline process is available to current FHA loan borrowers with mortgages in good standing. FHASecure is specifically designed for families that need to refinance to get out from under a bad ARM loan. For everyone else there is the standard FHA refinancing process.

No matter what type of FHA loan you are interested in. OnlineFHAservices.com can help you educate yourself about the products. You can even begin the application process through OnlineFHAservices.com. There is no more convenient way to arrange for an FHA product for your family.