7b. Pros and cons of FHA financing
7c. FHA-rehabilitation loans
7d. Other FHA loan options
7e. Buyer requirements for FHA loans
7f. Property requirements for FHA loans
7g. FHA loan checklist
Read the full Chapter Seven in one page
Buyers often find rehabilitation loans helpful when purchasing HUD homes. However, other helpful FHA options are available for buyers to consider as well. Several other helpful FHA loan options for buyers to consider include the following:
FHA Growing Equity Mortgages
Specifically designed for first time homebuyers, FHA Growing Equity Mortgages are designed to allow buyers to start by paying small payments on the mortgage that will increase over time at a gradual rate. Additional payment made as payments increase go towards the loan principle, which helps to reduce the term of the mortgage. They provide excellent options to those who would like to apply scheduled increases to their mortgage payments to reduce their mortgage term.
FHA Graduated Payment Mortgages
For homebuyers who have low to moderate income currently and expect to increase their income in the next 5-10 years, the FHA Graduated Payment Mortgage is an excellent option. Initial payments are quite small but increase on a yearly basis over 5-10 years. The specifics are dependent upon the specific payment plan chosen by the buyer.
FHA Energy Efficient Mortgages
This mortgage allows homebuyers to incorporate energy efficient improvement costs into their FHA financing. Buyers benefit from these mortgages, since reducing energy costs allows them to enjoy lower energy payments on a regular basis.