Florida First Time Home Buyer FHA Mortgage Lenders
Florida FHA Mortgage applicants are surprised to learn that FHA mortgage loans were introduced back in 1934 and are still the top Florida mortgage programs for first-time homebuyers. Many current Florida homeowners are not aware that FHA mortgage is not reserved only for first-time home buyers; there are many reasons why move-up Florida buyers are taking advantage of the FHA mortgage in every city and county in Florida.
Florida FHA Mortgage Topics:
FHA mortgage loans are one of the three government-guaranteed mortgage loan programs available to Florida mortgage applicants. The other two are the VA mortgage and the USDA mortgage program. All 3 provide Florida first-time homebuyers with low-to-no money down options but do have restrictions on who can take advantage of either program. VA loans are reserved for armed forces veterans, active-duty personnel with 181 days of service, National Guard and Armed Forces reserves with at least six years served, and unremarried spouses of veterans who died while in service or as a result of a service-related injury. USDA mortgage loans can only be used in approved rural Florida areas, and there are USDA income limitations for the borrowers as well. With the FHA mortgage loan, while there is a down payment requirement, there are 100% Florida FHA mortgage loan options available.
FHA-Mortgage-Lenders-Miami Florida
The FHA mortgage provides many advantages, the 3.5% percent down payment, the 500+ minimum credit score for borrowers that had bad credit past is one of the main reasons first-time buyers are drawn to the program. It simply doesn’t take as much to save for a down payment and closing costs. On a $300,000 purchase, the down payment is only $10,500. FHA mortgage loans also accept grants from Florida FHA-approved downpayment sources that can help with the down payment and closing costs. FHA allows gifts from relatives to be used to cover the down payment and the seller’s credit for first-time homebuyers of up 6% to cover closing cost and prepaids.
FHA Mortgage Lenders 4C Checklist
| 1. CASH | 3.5% Down with 580+ Credit score or Min 10% downpayment if your credit score is between 500-579. The maximum seller-paid closing cost of 6% must be requested in your purchase contract. Reserves can help your chances of approval with bad credit. Bad Credit Cashout Refinance with 500+ Credit, subject to AUS Approval. |
| 2. CREDIT | Minimum 500+ credit score – based on payment history, NOT credit score driven. |
| 3. CAPACITY | 31/43 can go up to 37/47 with 3 months of reserves, and 40/50 if your new mortgage is no more than 5% of your current rental history. |
| 4. COLLATERAL | Single Family, multi-family 2-4 units, townhomes, villas, FHA-approved condos, manufactured, modular homes. |
| SUMMARY | FHA mortgage loans are the easiest most affordable loan to qualify for. In regards to bad credit, you must show ability and willingness to repay to qualify with a bad credit Florida mortgage lender. |
FHA mortgage loans do carry a government guarantee in favor of the FHA mortgage lender. If the FHA mortgage should ever go into default, and the mortgage lender that approved the loan followed the FHA mortgage handbook when issuing the approval, the FHA mortgage lender is reimbursed via the FHA mortgage insurance. The FHA mortgage guarantee is funded by the borrowers in the form of FHA Mortgage insurance, which includes 1) an upfront mortgage insurance premium and 2) an annual premium paid monthly. The upfront premium is 1.75% added to the FHA mortgage loan amount, assuming a standard 30-year fix term. Using that same $300,000 home, the upfront premium would be $5,250. This FHA mortgage insurance premium is not paid out of pocket and is added to the FHA mortgage loan amount.
There are maximum Florida FHA mortgage loan limits for the FHA loan program, and these FHA Loan limits can change from county to county. These limits are calculated using 115 percent of the median home value of the area, although the Florida FHA loan limit can be higher in areas that are deemed “high cost.” One of our trained loan officers can tell you about FHA loan limits for your area.
FHA Mortgage interest rates for FHA loans can be better than other first-time homebuyer loan programs in today’s market, including conventional loans using Fannie Mae and Freddie Mac guidelines as well as VA and USDA loans. If you or someone you know is saving up to buy a Florida home and think the down payment or bad credit is a challenge, then its time to check out the FHA Mortgage.
Florida FHA Mortgage Service Areas Include:
