Question:

How current FHA mortgage interest rates have changed?

Answer:

Current FHA mortgage interest rates remain affordable but FHA loans are harder to get compared to some subprime offers. Even though rates are a little higher than they were before the crisis in the subprime market hit, FHA rates allow for affordable mortgage, but are not as attractive as some loans offered by sub prime lenders, or FHA loan limits are not sufficiently large in some high cost areas.

As a whole, there are little changes over current FHA mortgage interest rates. FHA ARM and FRM rates difference is not so great so that buyers would risk taking an ARM, and credit and income requirements for an FHA mortgage have become more stringent, full documentation is often required.

Currently, government administration are trying to increase FHA loan limits and change some FHA rules to make FHA loans more affordable to subprime borrowers and help the lending industry. FHA mortgage limits are currently $200,000 in lower-cost areas and $362,000 in high-cost areas. The Senate is pushing to raise the FHA mortgage upper limit to at least $417,000 and in some areas to over $800,000. This is how FHA are trying to help borrowers and lenders struggling with high foreclosure rates.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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