FHA Mortgage Loans
An FHA loan is essentially a mortgage that has been insured by the Federal Housing Administration (FHA). For a lender to offer this type of loan, the U.S Federal government has to approve all of its lenders; we, at AnnieMac Home Mortgage, are one of these lenders. This is done in the effort to bring down the financial risk, in the case that any borrower defaults on their mortgage payments. The FHA program was created in the 1930’s as a response to the increased amounts of defaults, foreclosures, and bankruptcies in the housing market as a result of the Great Depression.
The main intention of this loan was to stimulate the U.S housing market as the loans would be more affordable and accessible. Today, FHA mortgage loans have gained in popularity as they are beneficial for first-time home owners and for people who have less-than-perfect credit.
FHA Mortgage Loan Advantages
There are some distinct advantages to these loans, such as:
- FHA mortgage Loans are easy to get approved for and require a very minimal down-payment. You, the borrower, only need a 3.5% minimum down-payment and at least a credit score of 580 to be approved for this loan.
- Perfect for anyone who has no credit history. This is unheard of when someone applies for the normal mortgage or loan. What we do instead is that we look at other payment history records, such as different utility or rent payments.
- This loan can also be assumable. It simply means, that if you want to sell your home, the loan can be “assumed” by the buyer.
- An individual who has a bad/low credit, has undergone bankruptcy or has been foreclosed upon, might still qualify for an FHA Home Loan in Florida.
FHA Loans Limits
There are some maximum mortgage limits for these loans and they vary by state & county. In some counties, you might be able to get financing for a loan-size upto $729,750 with a minimum 3.5% down payment of the purchase value of the home. FHA programs go much beyond the scope of previously-listed programs. They also offer a Streamline Refinance & Streamline 203(k) for some limited repairs.
Frequently Asked FHA Questions:
Q. What are the credit requirements for most FHA lenders?
As of 2010, the majority of lenders are leaning toward a mid credit score of 640.
Q. How much can I afford?
By providing your mortgage professional the required documentation, a detailed analysis will be provided that includes your maximum loan amount
Q. How will I know if the condo/townhome I wan to buy is eligible for FHA financing?
The following link will allow you to enter your zip code for a list of eligible properties: CLICK HERE