FHA loans are not for everybody. However, if you have less than perfect credit or less than 20% down payment they might be the best option for some Florida homebuyers. Florida FHA loans allow loan applicants to buy a home with a down payment as small as 3.5%. Other Florida home loan programs do not allow such a low down payment.
FHA LOAN OFFER OTHER ADVANTAGES FLORIDA HOMEBUYERS WONT FIND WITH OTHER LOAN PROGRAMS INCLUDING:
- FHA Loans allow the use gifts for down payment and closing costs.
- FHA loans have no prepayment penalty (a big plus for bad credit Florida mortgage applicants.)
- FHA loans allow Florida no credit score home loans to qualify using alternate trade lines.
- An FHA loans are fully assumable making it easier to sell your Florida home!
- Possible leniency during financial hard times
- Funding for home improvement (through FHA 203k programs)
WHAT IS AN FHA LOAN?
An FHA loan is a (Federal Housing Administration) home loan that is insured against default by the FHA. In other words, the FHA guarantees Florida mortgage lenders won’t have to write off a loan if the borrower defaults.As a result of this FHA guarantee, Florida mortgage lenders are willing to make more Florida home loans that are easier to qualify for.
WHO CAN GET AN FHA LOAN?
Almost anybody apply for an FHA loan. There are no FHA income limits – that you may find with first time home buyer programs. However, there are FHA loan limits on how much you can borrow. In general, Florida FHA loan applicants are limited to relatively small loans relative to Florida home prices in your area. To find the Florida FHA loan limits in your region. To qualify for an FHA loan, you’ll need to have reasonable debt to income ratios. In general, you will want to figure no more than 35% of your gross income towards housing and no more than 50% to include housing plus all other monthly payments reflected on your credit report.41. In addition, you have to have decent credit. You don’t need great credit to get an FHA loan; it just needs to be decent.