The fha or the Federal Housing Administration is a deferment agency that helps by offering federal housing loans to moderate income families.
The fha loan rate however depends on the credit score of the individual. In that way, this lowers the risk for the lenders. As a result, they offer fha loan rates that are lower than the conventional mortgage but they still protect themselves from not getting paid in the long run.
The advantage is that they are given the option to buy down if you qualify for it. Let’s say in a 2-1 buy down, you can actually decrease the initial fha mortgage interest rate by 2% during your first year. Then this becomes 1% in the following year and then 0% after that.

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