If you currently live in Florida, now is a great time to consider buying your own Florida home. Since the downturn in the Florida real estate market, Florida home prices have really cooled down, which means that Florida housing prices are lower than they’ve been in years. For the recent few years its truly a buyer’s market, and Florida home sellers are generally very willing to negotiate on the asking price in order to sell their Florida home.
SOME ASK WHY GO FHA?
Buying your first Florida home, For some, can be a scary experience, partly because the typical upfront cash requirement can be so great. That’s where the Florida FHA mortgage program comes in. The Florida FHA mortgage loan works with Florida mortgage lenders to provide guaranty services for FHA loans that they provide. As a result of the FHA mortgage guarantee Florida mortgage lenders are more willing to loan to Florida mortgage applicants with less than perfect credit histories.
FHA mortgage loans also have less stringent requirements requiring less in down payments, and Florida home buyers need only put down less than 4% of the purchase price down, as opposed to the 20% usually required by most Florida mortgage banks. Florida FHA Mortgage applicants also have the option of rolling the closing costs into the FHA mortgage which further reduces the amount of cash they will need at closing. Needless to say, the relaxed credit standards and less cash down at closing mean that many Florida homebuyers who would not qualify for traditional programs will be able to obtain a Florida FHA mortgage and purchase a Florida home, which is the goal of the FHA mortgage program.
FLORIDA FHA LOAN LIMITS
While searching for a new Florida home, it’s important to keep in mind that the Florida FHA mortgage program does have a maximum FHA loan limits which is based on the type of dwelling you’re purchasing as well as where you’re living. The Florida FHA loan limit is based on the median cost of purchasing a Florida home in the country and is then adjusted for higher cost of living areas, which means that if you live in an area where housing is expensive, your limit will be higher and you can still afford to purchase a Florida home.