Low FHA interest rates from the FHA (Federal Housing Administration) have allowed families with low or moderate income to get the opportunity to buy their dream home. FHA loans are far easier to acquire and if the interest rates are compensated too, then they are obviously the best deal around.
The loan categories, which FHA offers are generally of two types: one is single family having 1-4 unit homes and the other is multi-family having 5 or higher number of unit homes.
For FHA home loans, you get an option of going for a buy down on the low FHA interest rates. When going for a 2-1 ratio, you get an option by which you can reduce your FHA mortgage interest rates by 2% in the first year, 1% in the second and follow it up by 0% from the following year. You also have an option of permanently lowering your rate of interest. If you were paying an interest of 6% for a loan, you can even lower it to 5.5%. However, to get this you have to meet a few guidelines laid by the FHA. Though this more preferred than a buy down option, if your seller pays for the permanent buy down and the buyer gets to occupy the property for three years.