Adjustable Rate Mortgages


To provide mortgage insurance for an adjustable rate mortgage which may offer a lower interest rate initially that a fixed rate mortgage, and which remains constant for an initial period of 1, 3, 5, 7 or 10 years. The interest rate may then change annually for the remainder of the mortgage term. The loan structure provides built-in limits or safeguards for both consumers and lenders, designed to minimize the effect of any rapid rise in interest rates.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
Program Accomplishments
Not applicable.
National Housing Act, Title National Housing Act, Part Title II, Section 251
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
All legal residents intending to occupy the property as their principal residence are eligible to apply.
Beneficiary Eligibility
Documentation regarding the characteristics of the property and the qualifications of the mortgagor are andsubmitted with the application to the lender.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Application is submitted for review and approval or disapproval to a HUD-approved lending institution.
Award Procedure
See Application Procedure.
Not applicable.
Approval/Disapproval Decision Time
Not applicable.
Not applicable.
Not applicable.
How are proposals selected?
Not applicable.
How may assistance be used?
HUD insures lenders against loss on mortgage loans. These loans may be used to finance the purchase of proposed, under construction, or existing one- to four-family housing as well as to refinance indebtedness on existing housing. The maximum insurable mortgage loan for an occupant mortgagor is the same as prescribed for Section 203(b) - program 14.117.
What are the requirements after being awarded this opportunity?
Not applicable.
Not applicable.
Lenders are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
The mortgage term may extend for 30 years. Method of awarding/releasing assistance: Lump.
Who do I contact about this opportunity?
Regional or Local Office
For additional information, individuals are encouraged to contact the FHA Resource Center by phone at 1-800-CALL-FHA (1-800-225-5342), by email at or visit the FHA Resource Center site at
Headquarters Office
Kevin Stevens
451 7th Street, SW
Washington, DC 20410 US
Phone: (800) 225-5342
Website Address
Financial Information
Account Identification
(Guaranteed/Insured Loans) FY 22 FY 23 FY 24 FY 21 FY 19 FY 20 FY 18 - Reported Under 14.117
Range and Average of Financial Assistance
No minimum Mortgage amount. The maximum mortgage amount is the same as for Mortgage Insurance-Homes in 14.117.
Regulations, Guidelines and Literature
Not applicable.
Examples of Funded Projects
Not applicable.


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