FHA Rates

FHA Rates

The Federal Reserve unveiled its third round of stimulus in September 2012. The massive bond-buying initiative, Quantitative Easing III aims to prop up the economy through a few key channels namely the housing market and the stock market.

FHA rates hit new lows. Today's mortgage interest rate is 3.25% for 30 years fixed rate. Mortgage rates are the lowest in over 50 years according to Freddie Mac.

There are 6 different types of programs that you may qualify for. Each program has a different requirement:

• Fannie Mae
• Freddie Mac
  
• FHA
  
• VA
  
• USDA
  
• Portfolio

Each program has different requirements for down payment, credit score, property type and loan-to-value.

Fannie Mae requires a minimum credit score of 620 to buy a home or refinance. Their mission is to help ensure that home buyers and home owners have access to mortgages. Offering programs such as HARP, HomePath, Conforming and Conforming High Balance.

Freddie Mac requires a minimum credit score of 620 to buy a home or refinance. Their mission is to help ensure that home buyers and home owners have access to mortgages. Offering programs such as HARP, HomeSteps, Conforming and Conforming High Balance.

FHA requires a minimum credit score of 500. There are no income limits like you may find with first time home buyer programs. However, there are limits on how much you can borrow. FHA requires a minimum down payment of 3.5% of the purchase price. Offering programs to buy a home or refinance such as rate & term, cash-out and streamline refinance. FHA rates hit new lows!

VA requires a minimum credit score 500. The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment.

USDA requires a minimum credit score 640. The Office of Rural Development (RD) is an agency with the United States Department of Agriculture which runs programs intended to improve the economy and quality of life in rural America by offering 100% financing.

Portfolio loans require a minimum credit score 640. A portfolio loan is a loan that is made by a lender that does NOT sell the loan to the Fannie Mae and Freddie Mac. Because they don’t sell the loan off to Freddie or Fannie, they don’t have to follow any of the requirements that Fannie and Freddie have. Examples of portfolio loans are jumbo loans, stated income loans, loans for foreign nationals and loans for investment properties.

The most popular type of mortgage is the 30-year fixed-rate mortgage. This loan is usually the easiest to qualify for and provides the maximum interest deduction at tax time. The interest rate stays the same over the life of the loan which provides unchanging low monthly payments.