If you are looking to reduce your payments as low as possible than an interest only is the right choice. Interest only loans were originally only available to a select few. They were created to allow to only the tax deductible portion of a mortgage to be paid. Over the years many started to use them to finance a much larger loan than what you can get with a fully amortized FHA mortgage.
If you are looking for the lowest payment possible for the next 64 months than this program can accomplish that.
With rates at 100 basis points lower than a traditional 30 year fixed this program is an attractive option for new home owners or those looking for relief from higher payments.
FHA 5 Year treasury highlights
Payments don't adjust until 64 months have passed
Take advantage of the lower rate to pay down your principal
The FHA 203k Rehab program allows home buyers or current home owners to include upgrade and reparation costs in one loan. This eliminates the traditional process of getting one loan for the construction or improvement and another for permanent financing.
Now you can refinance your FHA mortgage without traditional paperwork. This program allows you to reduce your mortgage payments. This means that if you have paid your mortgage on time you may qualify for a lower interest rate and payment regardless of the equity in your home and whether you have a bad credit history.
