Financial Resource

Florida FHA loan, Florida FHA Mortgage

 The Federal Housing Administration (FHA) runs several home loan programs to promote home ownership across Florida. In most cases, Florida FHA loans are mortgages obtained with the help of the FHA. With a  down payment as low as 3.5%, Florida buyers can purchase a home. FHA loans make it easier for people to qualify for a Florida mortgage, and have No Min Fico Score requirement.

What is an FHA Loan?

An FHA loan is a Florida loan insured against default by the FHA. In other words, the FHA guarantees that a Florida mortgage lender won’t have to write off a loan if the Florida home loan applicant defaults on the home loan – the FHA will pay the lender from the insurance premium collected. Because of the FHA home loan guarantee, Florida home loan lenders are willing to make more loans with less stringent qualifying.

Who Can Get an FHA Loan?

Almost anybody can get an FHA loan in Florida. There are no income minimums or  limits like other Florida  first time home buyer programs. However, there are FHA loan limits as to how much you can borrow. In general, you’re limited to relatively small mortgage loans relative to home prices in your area. To find the limits in your region, visit HUD’s Website.

To qualify for an Florida FHA loan, you’ll need to have reasonable debt to income ratios. In general, you have to be better than 31% of the gross monthly income towards PITI and 41% includes PITI plus all monthly obligations reflected on your credit report.. In addition, you have to have decent credit. You don’t need wonderful credit to get an FHA loan in FLorida; you just need on time payment history for the past 12 months..

Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase 2 years after a Foreclosure.

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Florida FHA Mortgage Lenders- MIN 580 FICO!

Why are FHA Loans so Great?

FHA loans allow people to buy a home with a down payment as small as 3.5% with No Minimum FICO score requirement. Other Florida home loan programs require larger down payments.

FHA loans advantages with FHA home loans include:

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Downpayment Requirements – FHA mortgages can work with as little as 3.5% down and those funds can come from a family member, charity, or your employer. Although the Florida FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan.

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

How do FHA Loans Work?

The FHA promises to pay Florida lenders if a borrower defaults on an FHA loan. To fund this obligation,  FHA charges borrowers a fee. Home buyers who use FHA loans pay an upfront mortgage insurance premium (MIP) of 1.75% of the loan amout financed into the purchase. They also charge a monthly premium of .55% If a borrower defaults on an FHA loan, the FHA uses collected insurance premiums to pay off the mortgage.

Why Not Use an FHA Loan to purchase a Florida home?

You may find that FHA loans are not for you. An FHA loan may not offer enough money if you need a large mortgage. In addition, the upfront mortgage insurance premium (and ongoing premiums) can cost more than private mortgage insurance.

In many cases, you can still buy a house with a very little down using a standard loan (not an FHA loan). In particular, home buyers with good credit can find competitive offers that beat FHA loans.

FHA loans are fell out of grace for a few years, but since 2005 have rebounded! It’s an institution that has been around for a long time, since June 27, 1934. The Department of Housing & Urban Development folded the Federal Housing Administration (FHA) under its umbrella in 1965.

FHA loans began to lose favor in the late 1990s, when home values began to inch upwards, surpassing FHA mortgage limits, and sellers balked at FHA’s stringent appraisal guidelines.

How FHA Loans Work
Now, FHA does not make loans or guarantee loans. It insures loans. The insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent. Without further approval from FHA, its approved lenders are authorized to:

Take loan applications Process loan applications Underwrite and close the loan

Florida FHA Loans Allow a Blemished Credit History
If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had past financial problems.

FICO scores can be lower than those for a conventional loan. Bankruptcy. You can obtain an FHA loan two to three years from the date of your bankruptcy discharge, as long as you’ve maintained good credit since your debts were discharged. Foreclosure. If you keep your credit in excellent shape since a foreclosure, an FHA loan will be available to you two to three years from the final date of your foreclosure.

FHA Loans Demand Fewer Repairs
At one point, FHA repair demands were so excessive that sellers would discount the list price to buyers who would agree to obtain conventional loans over Florida FHA loans. Today the requirements appear more reasonable.

Defective roofs that leak still need to be replaced but an older roof does not necessitate replacement if it doesn’t leak. Windows that stick upon opening or have cracked panes do not require replacement. FHA appraisals do not take the place of a home inspection, never have. Buyers should still obtain a professional home inspection.

Florida FHA loans are available to first-time home buyers and low- to moderate-income buyers. However, there are no income limit qualifications.

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