As a senior area manager for Citywide Home Loans, Gavin Ekstrom builds on in-depth knowledge of government mortgage programs. Gavin Ekstrom helps clients to understand the different options available from the Federal Housing Administration, including fixed- and adjustable-rate mortgages.
Since 1934, the Federal Housing Administration (FHA) has insured mortgage loans to help borrowers secure more affordable terms. The FHA currently offers more than 10 different types of lending programs. Two of the most common are the fixed- and adjustable-rate mortgages.
The FHA fixed-rate mortgage currently offers borrowers the opportunity to finance up to 97 percent of the loan itself, thus minimizing closing costs and regular payments. Regulations allow the borrower to receive 100 percent of closing costs from family, government agencies, or nonprofit organizations, but each state requires borrowers to meet particular income-to-debt ratios.
The administration's adjustable-rate mortgage works in a similar manner, though it is particularly intended to minimize interest payments. On an FHA-insured, adjustable-rate mortgage, interest cannot change by more than 1 percentage point in a year and cannot increase by more than 5 percent over the life of the loan. Interested borrowers can consult with an FHA-approved lender for additional details.
Since 1934, the Federal Housing Administration (FHA) has insured mortgage loans to help borrowers secure more affordable terms. The FHA currently offers more than 10 different types of lending programs. Two of the most common are the fixed- and adjustable-rate mortgages.
The FHA fixed-rate mortgage currently offers borrowers the opportunity to finance up to 97 percent of the loan itself, thus minimizing closing costs and regular payments. Regulations allow the borrower to receive 100 percent of closing costs from family, government agencies, or nonprofit organizations, but each state requires borrowers to meet particular income-to-debt ratios.
The administration's adjustable-rate mortgage works in a similar manner, though it is particularly intended to minimize interest payments. On an FHA-insured, adjustable-rate mortgage, interest cannot change by more than 1 percentage point in a year and cannot increase by more than 5 percent over the life of the loan. Interested borrowers can consult with an FHA-approved lender for additional details.
