TRUSTCO 

FHA Loan Highlights

 

FHA loans are widely used by first-time homebuyers and people with low-to-moderate incomes since this government insured mortgage features:

• Low down payments

• Flexible income and credit requirements

• Fixed- and adjustable-rate mortgages

• Loans for 1-4 unit properties and condos may be available

• Down payment funds can be a gift from a relative or employer*

• Home sellers can contribute up to 6% of the closing costs

• *Subject to underwriting review and approval.

 

FHA Loan Programs

 

Adjustable-Rate Mortgage

 

FHA's adjustable-rate mortgage (ARM) insures home purchases or refinances with rates that can change after the

initial fixed-rate period. Depending on market fluctuations after this initial fixed-rate period, your monthly payments

could change due to rates increasing or decreasing. An ARM could be the right choice for you if you plan on staying

in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a

fixed-rate mortgage is too high.

Fixed-Rate Mortgage

 

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term

of the loan. With FHA loans, you can select a 30-, 20- or 15-year term. The main difference is the lower term

options have higher monthly payments, which also means you are building home equity faster. Keep in mind

you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying

in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

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Streamlined Refinance

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If you currently have an FHA mortgage, we may be able to help you reduce your interest rate and lower your monthly mortgage payments with an FHA streamlined refinance. Plus, a streamlined refinance requires limited borrower

credit documentation and underwriting for an even easier process. This may be the right solution if you want

to convert your ARM to a fixed-rate loan.

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