Which type of loan does FHA financing require to provide stability to buyers?

FHA financing specifically requires a fixed-rate loan to provide stability to buyers. This type of loan has consistent monthly payments over the life of the loan, which helps borrowers budget effectively and plan for long-term housing expenses. The stability of fixed-rate loans is particularly important for first-time homebuyers and those with lower incomes, who may benefit from predictable payments that are not subject to market fluctuations. This aligns with the FHA's mission of making homeownership more accessible and sustainable for a broader range of people, ensuring that buyers are not vulnerable to sudden increases in their mortgage payments that can occur with variable-rate loans or other less predictable financing options.