FHA BRINGS ARMS BACK

By
Real Estate Mortgage Broker with 1st Preference Mortgage

FHA is now offering ARMS again!

Yes indeed!  You heard right!  Buyers now have the option to use either the 3/1 ARM or the 5/1 ARM when purchasing a new home which enables them to qualify for more house since they will qualify at the 1st year note rate. 

Today's rate (5/2/09) is:

3.75% with 1 Origination point for a 54 day lock. Caps 1/1/5 Margin 2.0

THe 5/1 ARM is slightly higher of course but it has Caps of 2/2/6 which clearly makes the 3 year arm a much more attractive choice. Since the 3/1 ARM has the 1% per year cap in 2 years the rate at worst would be 5.75%. THe cap for the life of the loan would be maxed out at 8.75% but if the circumstances of the buyer would fit this type of situation the ARM might be a great alternative for them.

VA is also offering a ARM but we must call into marketing for quotes on these.

 

 

 

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Lora Graetzer

Licensed Loan Originator
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