3.5% Down payment make FHA Loans are a good option Florida
For those who are looking for a Florida home loan you may have heard it can be difficult without a down payment of 20% or more. That is true but only in the traditional, conventional mortgage market. The good news for today’s Florida home buyers is that The Federal Housing Authority (FHA) provides loan programs requiring as little as 3.5% down.
Minimal Down Payment and Closing Costs.
Down payment less than 3.5% of Sales Price 100% Financing options available No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.
Easier Credit Qualifying Guidelines such as:
No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.
Easier Debt Ratio & Job Requirement Guidelines such as:
Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.
FHA is a loan program that has been around since the 1930’s but had fallen out of favor. Now however it has become the loan of choice for Florida homebuyers because of the many advantages versus conventional loans. What are the advantages of an FHA loan?
FHA requires only 3.5% down payment Unlike conventional loans, the entire down payment may come from a family gift. Family members can help the buyer qualify too. Your FICO credit score has a minimal impact on qualification The FHA interest rates are very competitive versus conventional financing FHA approvals are easier to get The loan limits are very high … In Hawaii, FHA loans can be as high as $793,750! No prepayment penalties FHA loans are assumable
FHA loans may be obtained through FHA approved banks, mortgage companies, and mortgage brokers.