Question:

What are the features of the FHA 203(b) fixed mortgage rate loan?

Answer:

The FHA 203(b) fixed mortgage rate loan is the first mortgage loan resource for first time homebuyers to try. If you are a first time homebuyer, you'd like to consider the FHA 203(b) fixed rate mortgage loan for its affordability. The FHA 203(b) loan is the core mortgage loan of the FHA loan programs.

Why shop an FHA 203(b) fixed mortgage rate loan?

The most common reason is that the FHA 203(b) is a safe loan. Not only is it government backed, but it is also a fixed rate loan that will not get you worried about high rates and possibly defaulting on a home loan. In comparison, if you are seeking a 100% financing mortgage program, it will probably get you a teaser rate and soon enough the rate may rise up dramatically.

You should know that FHA are not funding loans. Rather, they are insuring the lender from a possible borrower default. If you have decided to take the FHA 203(b) fixed mortgage rate loan, find a bank or a lender, working with FHA loans, and ask for one. Usually, a lender will be offering a variety of mortgage loans and the FHA 203(b) fixed mortgage rate loan will be only one of the possibilities they offer.

The FHA 203(b) fixed mortgage rate loan applies to single and multi-unit properties with up to 4 units in the basic structure, and unlike conventional loans the 3% down payment may in fact be a family gift or a government grant.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
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Common misspellings: mortage and morgage