Auto Loan Calculator Auto Loan What you need to know about FHA loans

What you need to know about FHA loans

The Federal Housing Administration has said it will soon begin offering more affordable FHA home loans to those who qualify for the loans. 

The agency is also launching a new FHA-backed home loan service that offers loans for about half of the price of traditional loans, but at less than half the interest rate. 

“We’re seeing the results,” said David R. Hartman, president of the American Bankers Association.

“It’s a real boost for homeowners, particularly first-time homebuyers, because they’re getting a much lower monthly payment.

They’re getting loans that are significantly less expensive.”FHA Home Loans FHA is a federally funded mortgage insurance program that helps people buy and buy home. 

It covers about 1.4 million households and helps people get loans with a down payment of at least 30 percent of their monthly income. 

But for some first-timers, the FHA can be overwhelming. 

A recent report by the Federal Reserve Bank of St. Louis found that some borrowers with low down payments can end up paying far more than they would with other lenders. 

And, according to the report, about 2 million borrowers who qualify under FHA mortgages could face an interest rate hike in the next two years. 

To help ease the financial stress for borrowers, the Obama administration is pushing the FHFA to offer loans at lower interest rates. 

On Thursday, the Federal Housing Finance Agency said that it will allow FHA to provide up to 60 percent of a loan’s interest payments at a rate of 2.7 percent, up from 2.0 percent in July. 

That would bring the average interest rate on the new FHSA-backed loans to 4.3 percent. 

While the FHCFA will provide loans at a lower rate than traditional lenders, the agency said it would also be offering loans at more favorable interest rates than Fannie Mae and Freddie Mac, which are also federally-backed. 

One key change is that FHA will no longer charge borrowers interest on their loans that aren’t in default, which is what’s happening with some lenders. 

 In a news release Thursday, FHA said that its loans for first- time homebuyer borrowers will now have an interest-only rate of 0.75 percent, down from 1.0% in July, and that borrowers will no be required to pay more than 20 percent of the purchase price. 

Additionally, FHHA said it is increasing the interest rates on its loans to 1.7% for borrowers with incomes up to and including 400 percent of federal poverty level. 

Those rates will apply to all FHA mortgage products. 

FHA also said that those borrowers will be able to refinance their mortgages at lower rates than traditional loans.

“The new FHE loans for borrowers in this age bracket are more affordable, because the new loans are also lower interest rate and will not require a downpayment,” said Sarah Sperling, FHB’s executive director. 

She said the new refinancing rates will allow borrowers with FHA credit to refinancing their loans at the same rates as borrowers with traditional mortgages. 

In the meantime, the new loan service will still only work for borrowers who are in default on their FHA loan. 

For some, the lower interest payments are a welcome change. 

Jennifer R. Rizzo, 31, of Atlanta, said she had been struggling with her mortgage since she graduated from college last year. 

Rizzo said she and her husband, Kevin, had been able to pay down their $60,000 loan in two years, but had only paid $8,000 of the total in interest. 

When she and Kevin were struggling to pay their bills, she took out a new mortgage from a lender that she had recently been approved for. 

This was a big deal for her, Rizzowosaid, because she had previously had trouble paying her bills. 

However, the lender, which had a 5.5 percent interest rate, had increased her payments from $5,000 to $10,000 a month. 

Now that the interest has dropped to 0.45 percent, Rizowosdebt is much more manageable. 

According to Rizzoscoast.com, she owes $1,788.40, which includes $1.5,500 of interest. 

 She said she was pleased to see the FHE offering at lower monthly payments. 

“[The FHFCA] was so kind, and they were really patient,” Rizzol said. 

Kevin Rizzocasaid, 28, of Washington, D.C., is a single parent with a child and a job. 

He and his wife, Emily, have a 2-year-old daughter. 

As a result, they were unable to refloat their F