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Rather than simply financing any home, the FHA set quality standards that homes had to meet in order to qualify for the loan. This forced commercial banks and lenders to do the same, creating many more opportunities for average Americans to own homes. This started another trend that commercial lenders eventually followed. Commercial mortgages wouldn’t allow that. In order to help pull the country out of the Great Depression, the FHA initiated a new type of mortgage aimed at the folks who couldn’t get mortgages under the existing programs. Stake crypto to help secure your favorite blockchain networks, support crypto projects, and earn staking rewards. A popular “hybrid” ARM is the 5/1 year ARM, which carries a fixed rate for five years, then adjusts annually for the life of the loan. The advantage is that you end up making relatively low monthly payments for five years, but here’s the kicker. These daring insurance companies did this not in the interest of making money through fees and interest charges, but in the hopes of gaining ownership of properties if borrowers failed to keep up with the payments. Imagine making a credit card purchase for $500.