FHA guarantees the loan so lender institution doesn’t take financial risk. FHA doesn’t give you the loan. In Housing and Urban Development website you can find approved lenders in your area who can give you more information about FHA loans.

There are different FHA loan programs. There of them are as follows;

1. FHA 203(b) fixed rate mortgage -15 years or 30 years loans –
2. FHA 251 adjustable rate mortgage
3. FHA 2-1 buy down loans.

Closing cost is most important disadvantage of FHA loans. Borrowers usually pay 1.5 % of the loan amount at closing with 0.5 % renewal premium.

FHA loan rates as conventional loans are affected by many variables. If you’re looking for FHA loan, you should make good research about loan rates and you should ask more than one finacial institution. Every lender will give you different loan rates and give spesific solutions to your situations. Your past credit problems also affect FHA loan rate.

FHA loan rates are generally higher than the conventional loan programs. These rates are fluctuate frequently so there are no fixed rates available on the net. Best thing you do is to follow up housing market and ask your approved FHA lenders in your state.