FHA mortgages or house loans are those that help low income earners and the less fortunate individuals acquire a place that could call home. They help these individuals by decreasing the price of the house to be sold that would only take place if the house is under an FHA house loan to begin with. Also, it also aims to lessen the growing case of unemployment in the country by providing clerical jobs such as construction working and engineering. Insurance agents and companies also gain a lot of profit through the FHA house loans as well.
There are different types of FHA mortgages that one can opt to choose and all of them have significant FHA loan interest rate. The interest rate varies from type to type and also depends on the lender or mortgage broker of the FHA house to be sold.
The first type is the conventional and fixed rate mortgages. This type of FHA loan has a fixed amount of interest rate. In short, the loan to be paid by the buyer remains the same throughout the lifetime.
The second type is the conventional adjustable rate mortgages. The amount to be paid is set but the interest rate changes or fluctuates as time pass by. The interest may either increase or decrease in value. The period of change usually occurs for around the third to the fifth year.
The third type is known as the hybrid type. It is basically the same as the second FHA mortgage type and only differs in the time of the interest change. The change usually occurs in a longer period of time.
Balloon mortgages are the fourth type of FHA loan and they only mean that the pay at the start is small and little but in a later date, the entirety of the price is paid.
Self-employed income mortgage are for those individuals who are self-employed of course and those who have obscurity in showing documents of a steady income.
Relocation mortgages are the type of FHA house loans that cater to people who transfer to another home while their current hone is still for sale in the market.
Those are just some of the different types of FHA housing loans available for the low income earners. Do remember that there is different FHA loan interest rate also which depend on a lot of factors like the type, the mortgage broker, etc. Just have patience in looking for the best house with the best FHA housing loan type and you are sure to find yourself your home sweet home.