Financial Resource

Florida homebuyers should consider an FHA loan over Conventional or Sub prime loan mainly because FHA has NO MINIMUM CREIDIT or CREDIT SCORE REQUIMENTS. At the same time FHA loans to not penalize Florida buyers with a higher interest rate because of having less then perfect credit.

There are many other good reasons for Florida homebuyers to choose an FHA loan, especially if one or more of the following applies to you:

If you’re a Florida first-time homebuyer If you’re worried about qualifying for a loan If you don’t have perfect credit If you don’t have a lot of money to put down on a Florida house If you want to keep your monthly payments as low as possible If you’re worried about your monthly payments going up If you’re worried about what will happen if you fall behind on your payments

If you are a Florida homebuyer and any of these things describe you, then an FHA mortgage loan may be right for you. An FHA-insured loan offers many benefits and protections that you won’t find in other loans including:

Lower Interest rates: An FHA mortgage loan has competitive interest rates because the Federal government insures the loans for lenders. Always compare an FHA mortgage loan with other loan types.

Easier to qualify: Because FHA insures private Florida mortgage  lenders, FHA lenders are  more willing to give you loan terms that make it easier for you to qualify.

If you have less than perfect credit: If you’re a Florida homebuyer and you don’t have to have perfect credit and worried you will not qualify because of a bankruptcy or foreclosure FHA loans make it easier for you to qualify for a Florida mortgage in a shorter period of time than conventional financing options.

More protection to keep your home:  FHA mortgage loans have been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, the FHA has many foreclosure avoidance options to help you keep you in your home and avoid foreclosure.

FHA does not lend money to people to purchase a home and it does not set the interest rates on mortgages it insures. FHA insures loans for lenders against defaults. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the Florida Mortgage application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured or mobile home (provided it is on a permanent foundation).

What types of loans does FHA offer?

Fixed rate loans – Most FHA loans are fixed-rate mortgages (loans). In a fixed rate mortgage, your interest rate stays the same during the whole life of the loan, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

Adjustable rate loans – Most first-time homebuyers are a little stretched financially, so they want payments as low as possible at the beginning. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT the most widely used index, to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum amount that the interest rate on your loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate, again depending upon the type of ARM you choose. The advantage of an ARM is that you may be able to afford more house; because your initial interest rate will be lower, as will your payment.

Purchase – FHA 203K Rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the FHA 203K program. You can get just one mortgage loan which includes the mortgage and the cost of repairs combined up to 35,000. The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. The advantage of the FHA 203K Mortgage loan Florida homebuyers can buy a home that needs a lot of work, and include all the repair cost into one low interest mortgage payment and complete the repairs after you purchase the home.

I hope this article gave you some in site to the FHA mortgage Program.

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