FHA loans are the best choice for Florida home buyers, 97% downt o 530 FICO
FHA loans are not credit score driven and provide the best interest rates for Good and Bad credit mortgage applicants. We approve FHA Mortgage loans down to a 500+ Credit score. Advantages Include
- A lower down payment
- Easier credit qualifying
- Lower closing costs
Apply at www.FHAmortgageFHAloan.com
Purchasing a new Florida home is exciting. Finding the right Florida home for you and your family requires a great deal of work and decision making. However, finding the right Florida mortgage is just as important as finding the right home.
Many Floridians take advantage of FHA loans when purchasing a Florida home. An FHA mortgage can be an attractive option to many Florida first-time homebuyers, as down-payment requirements for a FHA mortgage can be as low as 3.5 percent. However, you don’t need to be a Florida first-time buyer to take out a FHA mortgage; the only stipulation is that a purchaser may only have one Florida FHA mortgage at a time.
FHA Refinancing
The FHA mortgage loan also allows Florida homeowners to obtain Florida FHA refinancing. An FHA refinance makes it possible to lower your interest rate and your monthly payments. You may also take out cash from the equity in your Florida home to pay off debt or make Florida home improvements, or avoid foreclosure on your Florida home. With many Floridians currently facing interest rate resets, it’s hard to keep up with the mounting monthly Florida mortgage payments.
History of the FHA
The Federal Housing Administration, was established by the government to improve housing conditions for Americans. The government established the FHA mortgage loan in 1934 to improve existing housing standards and conditions. Prior to 1934, a down payment was typically 50 percent of the Florida home’s price and payments were stretched out between only 1-5 years. You can learn more about FHA loans from the Department of Housing and Urban Development.
How the FHA Mortgage Program Works
The FHA does not lend the money to Florida home buyers; it simply insures that the total Florida mortgage will be paid to the Florida lender if the Florida home buyer defaults on the home loan. It is always the decision of the private Florida mortgage lender (a bank, credit union, or savings and loan) to decide whether or not they will grant a Florida mortgage or not..
The FHA mortgage loan tends to be more forgiving than conventional Florida mortgage loans in terms of past credit history. A bankruptcy discharged as little as two years ago may not hinder a Florida homebuyer from qualifying for the FHA mortgage loan.
Typically, Florida FHA mortgages do not require more than a 3-5 percent down payment. Unlike traditional FHA loans, this money may also be a gift to the homebuyer and does not need to be secured as the Florida homebuyer’s own money. Often, there are “points” associated with FHA mortgages that are usually worth about 1 percent of the total Florida mortgage. These points are paid to lenders to help lower the interest rate of the mortgage.
Borrowers will also have to pay PMI (private mortgage insurance) on the mortgage. PMI is used to ensure that the total amount of the Florida mortgage will be paid to the Florida lender if the buyer defaults. Usually, a PMI will not?? be put into effect until 20 percent of the mortgage has been paid.
FHA mortgages have no mortgage value cap. In other words, you can take out a FHA mortgage for $150,000 – $300,000 without any restrictions, other than credit applicability.
Closing costs on FHA (or conventional loans) are usually up to 6% percent of the total Florida mortgage amount and are the responsibility of the Florida homebuyer. However, FHA closing costs can be financed into the total amount of the mortgage and paid off accordingly.
Qualifying For an FHA Mortgage in Florida
To be approved for a Florida FHA mortgage, you must have a satisfactory credit history, which shows your commitment to paying off debts in a timely manner. Also, you must be able to prove that the total monthly mortgage payment will be less than 35% percent of your monthly income. The number arrived at after multiplying your total monthly income by 35% percent is referred to as PITI, or principle, interest, property taxes, and insurance. The PITI amount is the highest amount that your monthly mortgage payments may be. Furthermore, long-term debt, such as car loans and credit card balances, in addition to the monthly PITI amount cannot be more than 50% percent of your total monthly income. More information about loan qualifications is available from the FHA.
While these qualifications may seem a little stringent, they are actually more lenient than traditional mortgage qualifications. The decreased down payment makes this type of mortgage even more desirable for many people.
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