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Mortgages: What the Federal Housing Administration offers

When you're ready to make your first home purchase, it's an exciting time. It can also be confusing. There are programs through the Federal Housing Administration that work to provide mortgages to new home owners.

One of the programs you might be interested in is a fixed rate mortgage program through the FHA. The program insures that those lending to buyers are qualified to do so. This helps protect you as a buyer. Fixed mortgages have a single interest rate that does not change over time.

If you're more interested in condominiums, the FHA also offers a condominium unit mortgage. It may only be used for the purchase of a unit in a condominium.

Another mortgage offered is the growing equity mortgage, which allows households with a limited income to buy a home sooner with less money. This works best for those with an income that should increase soon, either through working more hours, getting a better-paying job or because of other financial windfalls. The payments are tiered. Over time, they increase into a normal mortgage payment, giving the homeowner time to work and save.

Energy efficient mortgages are another good option for pepole who want to save money on utility bills by allowing the FHA loan programs to help them purchase energy-efficient products for the new home as part of the mortgage. Buyers willing to do this help the environment and have extra support from the government to do so.

These are just some of many mortgage options available through the Federal Housing Administration and something to consider if you plan to purchase a new residence in the future. Your attorney can help you figure out if you qualify for these or other mortgage assistance programs.

Source: First Time Home Buyer Programs, "FHA Home Purchase Mortgage," accessed Feb. 17, 2017

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