FHA Fixed Rate Mortgage
Description
FHA loans are mortgages issued by government approved lenders and insured and administered by the U.S. Department of Housing and Urban Development (HUD). FHA mortgages generally require less of a downpayment than conventional loans. FHA does limit the amount an individual can borrow based on the location of the property.
Pros
The loans can increase only by 1 point per year and by 5 points over the life of the loan. Low initial rate.
