What Are the Differences Between Fixed Rate and Adjustable Rate?

There's some nuances here when you look at fixed versus adjustable, which are really the two routes you can go. Fixed rate loans require you to use your money upfront. So there is no line of credit associated with the fixed rate loan. FHA has the HUD has a cap on how much you can draw on day one. And it's 60% of what that value is unless you're extinguishing a debt obligation on the house.