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Short answer
Yes. FHA insures ARMs with a first adjustment after 1, 3, 5, 7 or 10 years, and VA guarantees ARMs and hybrid ARMs fixed for at least 3 years. Both adjust once a year after the first change, and both set cap limits by federal rule, which are often tighter than a conventional ARM's. Not every lender offers them, so ask early if you want one.
What ARMs does FHA allow?
Under HUD's rule, an FHA ARM adjusts annually starting after 1, 3, 5, 7 or 10 years. The index must be the one-year Treasury (CMT), the 30-day average SOFR, or another SOFR average HUD approves.
- 1- and 3-year FHA ARMs: no more than 1 percentage point change per adjustment and 5 points over the life of the loan.
- 5-, 7- and 10-year FHA ARMs: no more than 2 points per adjustment and 6 points over the life of the loan.
Caps work in both directions, and FHA ARMs follow the usual FHA rules on credit, income and mortgage insurance. See FHA loans in NH.
What ARMs does VA allow?
VA's traditional ARM adjusts yearly, with the first adjustment no sooner than 36 months, and caps of 1 point per year and 5 points over the life of the loan. VA hybrid ARMs keep the starting rate for at least 3 years; if the fixed period is under 5 years, the first adjustment is limited to 1 point, and VA sets the caps for longer fixed periods. The usual VA benefits, such as no monthly mortgage insurance, still apply. See VA loans in NH.
How are they different from a conventional ARM?
Conventional ARMs often adjust every six months after the fixed period, while FHA and VA ARMs adjust once a year. FHA and VA caps are set by regulation, so they're the same from lender to lender. A conventional ARM's caps depend on the plan. See ARM rate caps explained.
What disclosures will I get?
Both programs require a written explanation of the ARM's features when you apply, and the same federal adjustment notices as other ARMs before each rate change. See what happens when the fixed period ends.
Can I refinance an FHA or VA ARM into a fixed rate later?
Often, yes. FHA's streamline refinance and VA's interest rate reduction refinance (IRRRL) both allow moving from an ARM to a fixed rate, subject to each program's rules. See FHA streamline refinance.
Sources
- 24 CFR 203.49, FHA adjustable rate mortgages
- 38 CFR 36.4312, VA interest rates and ARMs
- 38 U.S.C. 3707A, VA hybrid adjustable rate mortgages
Checked November 10, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.