Why FHA Loans are #1 for Florida Homebuyers – FHA Loans Provide Many Advantages For Florida Homebuyers

By 911Loan

Why FHA Loans are #1 for Florida Homebuyers.

What is an FHA loan?

It’s a mystery to most Florida homebuyers, since Federal Housing Administration (FHA) loans are not loans at all. What FHA does is insure FHA loans so that Florida mortgage lenders can offer FHA mortgage assistance to Florida loan applicants who:

Have fair or poor credit due to past credit problems
Have a low down payment (currently 3.5%)
Have undergone bankruptcy more than 2 years ago
Have been foreclosed on more than 3 years ago.

Essentially, the federal government insures loans for FHA-approved Florida mortgage lenders so that lenders reduce their risk of loss if they lend to Florida homebuyers and homeowners who could default on their mortgage payments. The FHA loan program was created during the great depression and been in place since the 1930s to help stimulate the housing market by making FHA loan easy to qualify for and affordable. Traditionally, FHA home loans have helped military families who return from war, the elderly, handicapped, or lower-income families, but really, anyone that can show the ability to make regular monthly payment can get an FHA loan – FHA loans are not just reserved for Florida first-time home buyers.

What are the advantages of an FHA mortgage?

An FHA mortgage loan is the easiest type of home mortgage loan to qualify for because it requires borrowers to come up with low down payment and you can have less-than-perfect credit. Also, as a result of the FHA insurance FHA mortgage lenders are more willing to provide loans. Another advantage for Florida homebuyers is that an FHA loan is fully assumable, which means if you want to sell your Florida home, the buyer can “assume” the FHA loan you currently have. FHA loans can be used for a Florida home purchase or a refinance.

What’s needed to qualify for an FHA loan?

FHA Loan applicants must have stable predictable income and worked for same employer for the last two years.
FHA Mortgage applicants must have valid Social Security number, lawful residency in the U.S., and be of legal age to sign a mortgage in your state.
Must have a minimum down payment of 3.5% on the house and it can be gifted by a family member (conventional financing does not allow gifting).
FHA requires that the Florida home be appraised by an FHA-approved appraiser.
New FHA Mortgage payment (including principal, interest, property taxes, property insurance) needs to be less than 35% of your gross monthly income.
All Monthly debt including mortgage, credit cards, auto, student loans, etc. cannot be more than 50% of your gross (before tax) monthly income.
FHA has no minimum requirement for credit scores, but past credit performance will be scrutinized. Florida FHA mortgage lenders will use a case-by-case basis to determine an FHA loan applicants’ credit worthiness.
Must be 2 years out of bankruptcy, with good credit.
Must be 3 years out of foreclosure, with good credit.

What are the disadvantages of using an FHA mortgage?

Over all the advantages far outweigh the disadvantages but we want you to be fully informed. Since an FHA mortgage does not have the strict standards of a conventional loan, it requires 2 kinds of FHA mortgage insurance premiums: one is paid in full upfront -or, it can be financed into the mortgage — and the other is included in the monthly payment. Also, FHA loans require that the Florida home meet certain conditions and must be appraised by an FHA-approved appraiser.

(UFMIP) Upfront mortgage insurance premium— Appropriately named, this is an upfront monthly premium payment, which means Florida homebuyers will pay an UFMIP of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250. The UFMIP can be paid upfront at closing as part of the settlement charges or can be rolled into the mortgage.
MIP Monthly Insurance premium (charged monthly) —MIP is charged monthly that will be figured into your monthly mortgage payment. It is based on a borrower’s loan-to-value (LTV) ratio and length of loan. There are two different Annual MIP values: 0.50% and 0.55%. If the LTV is less than or equal to 95 percent, a FHA loan applicant will pay 0.50%. For LTVs above 95 percent, annual premiums will be .55%. Example (for LTV less than 95%): $300,000 loan x 0.5 = $1,500. Then, divide $1,500 by 12 months = $125. Your monthly premium is $125 per month. To understand when you will stop paying mortgage insurance:

- For FHA mortgage loan with terms more than 15 years, the MIP will drop off after five years (in most cases) or when the remaining loan balance on the loan is 78 percent of the property value— whichever is longer.
- For FHA mortgages with terms 15 years and less and with LTV ratios of 90% and greater, the MIP will stop when the LTV ratio reaches 78% — no matter what length of time the FHA loan applicant has paid the MIP.
- For FHA mortgages with terms 15 years and less and with LTV ratios of 89.99% and less, you will not be charged MIP.
The Florida home needs to meet certain standards — Also, an FHA mortgage loan requires that the home meet certain minimum standards by the FHA appraiser. If the Florida home you are purchasing does not meet these FHA minimum property standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the FHA required repairs are complete).

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March 9th, 2010

How can FHA help you buy a Florida Home?

By 911Loan

How can FHA help you buy a Florida Home?

The Federal Housing Administration, generally known as “FHA”, is the largest government insurer of mortgages in the world. A part of the United States Department of Housing and Urban Development (HUD), FHA provides FHA mortgage insurance on Florida single-family homes, Florida multifamily, Florida manufactured homes made by FHA-approved lenders throughout Florida. While Florida homebuyers must meet certain requirements established by FHA to qualify for the insurance, Florida mortgage lenders bear less risk because FHA will pay the Florida lender if a homeowner defaults on his or her loan. FHA has insured over 37 million home mortgages and 47,205 multifamily project mortgages since 1934. Currently, FHA has 5.2 million insured single-family mortgages and 13,000 insured multifamily projects in its portfolio. Clearly, FHA home loans provide a huge economic boost and today is the best option for Florida homebuyers and homeowners.

Using the FHA Loan to buy a Florida home

The FHA mortgage loan was created to help increase homeownership. The FHA program makes buying a Florida home easier and less expensive than other types of Florida home loan programs. Some highlights of the FHA mortgage are:

Minimal Down Payment and Closing Costs.

Downpayment less than 3.5% of Sales Price
100% Financing options available*
Gift for downpayment and closing costs allowed.
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:

Minimum FICO credit score of 530.
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 Florida home loan.
Less than two years on the job is allowed.
Self-Employed individuals o.k.

Many borrowers are finding out what a good deal a Florida FHA home loan really is. Call 1-800-570-0448 today or simply use our quick application to find out more!

These advantages of the FHA loan program has made it one of the best options for most first time home buyers as well as move-up Florida home buyers.

You do not have to be a Florida first time buyer to obtain a FHA loan, anyone may use a FHA loan as long as you do not have more than one Florida FHA insured loan at any one time.

For Florida first time home buyers and other borrowers, the FHA home loans can have many advantages:

Easier Qualification – The FHA loan insures Florida FHA mortgage 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% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your experienced and expert 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 for manufactured housing or just use our quick application to learn more!

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.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

Many borrowers are finding out what a good deal a Florida FHA home loan really is. Call 1-800-570-0448 today or simply use our quick application to find out more!

Serving These Fine Florida Communities:

Arcadia :: Boca Raton :: Boynton Beach :: Bradenton :: Brandon :: Cape Coral :: Clearwater :: Clewiston
Crestview :: Daytona Beach :: Deerfield Beach :: Deland :: Delray Beach :: Deltona :: Destin :: Englewood
Fort Pierce :: Ft. Lauderdale :: Ft. Myers :: Ft. Walton Beach :: Gainesville :: Hollywood :: Homosassa Springs
Jacksonville :: Key West :: Kissimmee :: Lake City :: Lakeland :: Lynn Haven :: Marathon :: Marco Island
Melbourne :: Miami :: Miami Beach :: North Fort Myers :: North Miami Beach :: Naples :: Ocala :: Okeechobee
Orlando :: Ormond Beach :: Osprey :: Palatka :: Palm Bay :: Palm Beach :: Palm Coast :: Panama City :: Pensacola
Pompano Beach :: Port St. Lucie :: Punta Gorda :: Santa Rosa :: Sarasota :: Sebastian :: Sebring :: Springhill
St. Augustine :: St. Petersburg :: Tallahassee :: Tampa :: The Villages :: Titusville :: Venice :: Vero Beach
Wauchula :: Wesley Chapel :: West Palm Beach :: Winter Park

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February 21st, 2010

What is an FHA Loan? How can it Help Florida Homebuyers?

By 911Loan

What is an FHA Loan?

Many first time Florida homebuyers want to know, what is an FHA loan? And, what are the advantages over other types of Florida mortgage programs? For many FHA loan applicants the FHA loan presents several advantages over a traditional home loan. The FHA loan is a government-backed loan that is pre approved based upon a common sense approach to Florida home loans rather than a credit score driven approach used by most conventional home loan programs.

Here are a few advantages of the FHA loan.

Government Insured

The most important aspect of an FHA loan is that it is insured by HUD and guarantees private FHA approved Florida mortgage lenders against default. This means that if an FHA Loan applicant defaults on the FHA loan, FHA will repay the lender. Because these FHA loans are guaranteed by HUD, it represents a very low risk opportunity for the FHA lender. With this Florida FHA loan guarantee, mortgage lenders provide FHA loans to many loan applicants that they otherwise not quality. It helps Florida FHA loan applicants with low credit scores buy a Florida home. The FHA loan opens the door for almost anyone who has shown the ability to make the payments to purchase a Florida home.

No Restrictions

Unlike many other loan programs out there, with the FHA loan there are no restrictions for who can get approved FHA loan. The qualify FHA loan applicants still have to display a minimal level of creditworthiness, but you do not have to have a minimum credit score to qualify. For example, you do not have to be a veteran in order to get an FHA loan. You simply fill out a full FHA loan application and we will pre approve you for an FHA Loan. Most FHA lenders work with the FHA loan applicants in every market. Therefore, the access to this type of FHA loan is unparalleled in the industry.

Lowest Down Payment

Another way that FHA loans help Florida home buyers is with a reduced down payment. With this type of loan, you can realistically expect to put about 3.5 percent down on the house. With a regular Florida home loan, you might be required to put down as much as 10 to 20 percent. This can add up to a substantial amount of money and eliminate many potential buyers. If you think you do not have enough money saved up for a down payment to buy a house, an FHA loan is definitely something that you should consider.

Upfront PMI

With FHA loans, they will charge you an upfront fee to cover mortgage insurance. Their closing costs can be lumped into the loan, so you have to be careful to see what you are paying. In some cases, this fee can actually add up to more than PMI with a normal mortgage would. The upfront mortgage insurance premium usually works out to about 2.25% of the loan amount. On a $100,000 loan that works out to $2250 in mortgage insurance.

In addition to the upfront mortgage insurance premium, you will also have to pay a monthly amount for mortgage insurance. In most cases, this is about 0.55% of the loan amount. Therefore, you have to consider your options carefully with this type of mortgage. You will save in some areas and pay more in others. Compare your options and decide if an FHA loan is right for you.

For Florida banks and other mortgage lenders, FHA mortgage loan financing offers the security of a government insured Mortgage. Win/Win!

To learn more, call today at 1-800-570-0448 or just use our fast and easy quick application!

Serving These Fine Florida Communities:

Serving These Fine Florida Counties:

Alachua :: Baker :: Bay :: Bradford :: Brevard :: Broward :: Calhoun :: Charlotte :: Citrus :: Clay :: Collier
Columbia :: Dade :: DeSoto :: Dixie :: Duval :: Escambia :: Flagler :: Franklin :: Gadsden :: Gilchrist :: Glades
Gulf :: Hamilton :: Hardee :: Hendry :: Hernando :: Highlands :: Hillsborough :: Holmes :: Indian River :: Jackson
Jefferson :: Lafayette :: Lake :: Lee :: Leon :: Levy :: Liberty :: Madison :: Manatee :: Marion :: Martin :: Miami-Dade
Monroe :: Nassau :: Okaloosa :: Okeechobee :: Orange :: Osceola :: Palm Beach :: Pasco :: Pinellas :: Polk
Putnam :: Saint Johns :: Saint Lucie :: Santa Rosa :: Sarasota :: Seminole :: Sumter :: Suwannee :: Taylor :: Union
Volusia :: Wakulla :: Walton :: Washington

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February 21st, 2010

Why FHA Loans are #1 for Florida Homebuyers – FHA Loans Provide Many Advantages For Florida Homebuyers

By 911Loan

Why FHA Loans are #1 for Florida Homebuyers.

What is an FHA loan?

What are the advantages of an FHA mortgage?

What’s needed to qualify for an FHA loan?

What are the disadvantages of using an FHA mortgage?

How can FHA help you buy a Florida Home?

By 911Loan

What is an FHA Loan? How can it Help Florida Homebuyers?

By 911Loan

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