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What Can FHA loans Can do for Florida Home Buyers

03-07-10

What FHA loans Can do for Florida Home Buyers

The Federal Housing Administration (FHA) loans are not FHA loans at all. What they do is insure private FHA mortgage loans so that FHA lenders can offer mortgage assistance to Florida homebuyers who:

•· Have fair or poor credit

•· Have a low down payment (currently 3.5%)

•· Have undergone bankruptcy 2 years or more old

•· Have been foreclosed on 3 years or more ago

Essentially, the federal government insures FHA loans for FHA-approved mortgage lenders so that Florida FHA mortgage lenders reduce their risk of loss if they lend to borrowers who could default on their mortgage payments. The FHA mortgage program has been in place since the 1930s to help stimulate the Florida housing market by making FHA loans accessible and affordable for Florida homebuyers. Traditionally, FHA loans have helped military families who return from war, the elderly, handicapped, or lower-income families, but really, anyone can get an FHA mortgage - they are not just for Florida first-time home buyers.

What are the advantages of FHA mortgages ?

An FHA mortgage is the easiest type of Florida mortgage loan to qualify for because it requires a low down payment and you can have less-than-perfect credit. Also, because FHA insures your FHA mortgage, FHA lenders are more willing to provide loans. Another advantage of an FHA loan is it's assumable, which means if you want to sell your Florida home, the buyer can "assume" the loan you have. FHA loans can be used for a Florida home purchase or a refinance.

What do I need to qualify for an FHA loan?

•· FHA applicants must have steady employment history or 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.

•· FHA mortgage applicants Must make 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 mortgage applicants Must have a property appraisal from an FHA-approved appraiser.

•· FHA mortgage applicants mortgage payment (including principal, interest, property taxes, property insurance) needs to be less than 31% of your gross monthly income.

•· FHA mortgage applicants monthly debt (mortgage, credit cards, auto, student loans, etc.) cannot be more than 43% of your monthly income.

•· FHA mortgages have No minimum requirement for credit scores, but past credit performance will be scrutinized. FHA-qualified lenders will use a case-by-case basis to determine an applicants' credit worthiness.

•· FHA mortgage applicants must be two years out of bankruptcy, with good credit.

•· FHA mortgage applicants must be three years out of foreclosure, with good credit.

What are the disadvantages of an FHA mortgage?

The advantages far outweigh the disadvantages but you knew there had to be a catch and here it is: Since an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of FHA mortgage insurance premiums: one is paid in full upfront -or, it can be financed into the mortgage -- and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.

•· Upfront FHA mortgage insurance premium (MIP) - Appropriately named, this is an upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250. This sum can be paid upfront at closing as part of the settlement charges or can be rolled into the mortgage.

•· Annual FHA (MIP) (charged monthly) - Called an annual premium, this is actually a monthly charge that will be figured into your 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 borrower 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 mortgages with terms more than 15 years, the MIP will drop off after five years (in most cases) or when the remaining balance on the loan is 78 percent of the value of the property - whichever is longer.

•· For 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 borrower has paid the MIP.

•· For mortgages with terms 15 years and less and with LTV ratios of 89.99% and less, you will not be charged MIP.

•· Florida homes needs to meet certain standards - Also, an FHA loan requires that a property meet certain minimum standards at appraisal. If the home you are purchasing does not meet these 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 repairs are complete).

Important note: Prior to Oct. 1, 2008, premiums were figured using a risk-based calculation, taking into account a borrower's credit score and loan-to-value ratio. However, on Oct. 1, 2008, a one-year moratorium was instituted on this method by the Housing and Economic Recovery Act of 2008. Keep current on the premium costs for FHA loans by visiting the U.S. Department of Housing and Urban Development (HUD).

How large of an FHA loan can I get?

While the FHA does not have income or location restrictions, there are FHA maximum mortgage limits that vary by state and county.

Due to tighter lending standards on conventional loans, FHA loans are becoming increasingly popular with Florida homebuyers and homeowners alike. For more information on FHA loans, visit www.FHAmortgageprograms.com

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FHA loan Florida, FHA mortgage Florida, FHA mortgage Lender Florida, FHA home loan Florida,

03-07-10

Thomas Martin

FHA loans make it very easy to purchase a Florida Home.

The FHA loan have been helping Florida homebuyers become homeowners since 1934. How do FHA loans help? The Federal Housing Administration (FHA) - which is part of (HUD), provides FHA mortgage insurance to insure private lenders against loss. The mortgage insurance allows private Florida lenders to lend up to 97% of the purchase price and allows financing with No Minimum credit score requirement for Florida homebuyers.

Easy Qualification - The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you're likely to find FHA loans with terms that make it easier for you to qualify.

Minimal Down payment Requirements - FHA loan can work with as little as 3% down and those funds can come from a family, grant , or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that there are many Florida down payment assistance programs to help you with the down payment.

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 loan lates get approved every day for FHA loans to buy or Refinance homes in. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan - Florida FHA home loan rates are extraordinarily competitive. FHA's lower risk to the lender means a better rate for the Florida borrower.

Safeguards for Borrowers Who Get Behind - FHA loans 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 loan.

Options for Manufactured Housing - Under certain conditions, you can even secure an FHA loan for a Mobile Home or manufactured home using a Florida FHA mortgage loan.

FHA Loans Are Fully Assumable - When you are ready to sell your Miami home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.

Serving These Fine Florida Communities:

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Florida FHA Mortgage Lender - FHA Mortgage to Buy a Florida Home

02-22-10

Thomas Martin

Florida FHA Mortgage Lender - FHA Mortgage to Buy a Florida Home

The FHA loan program was created to help increase Florida home ownership. You do not need to be a Florida first time home buyer to obtain an FHA Loan. The FHA loan makes buying a home easier and less expensive than other types of home loan programs. Some advantages of the FHA mortgage loan include:

Minimal Down Payment and Closing Costs:

Down payment less than 3.5% of Sales Price.
Seller can credit up to 6% of sales price towards buyers costs.
Gift for down payment and closing costs allowed.
100% Financing options though gifts and grants.
No Bank Savings or reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

530 Minimum FICO Requirement
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 Guidelines such as:

Higher Debt to Income Ratio's than other home loan programs.
Less than 2 years on the job is Ok.
Self-Employed individuals Ok.

Have Questions? Fill out a Quick Response form or (Apply Now).

FHA loans are funded by private Florida mortgage lenders like us and guaranteed by the US Government. As a result of the FHA government guarantee Florida home buyers and homeowners find that qualifying for an FHA loan is easier and less expensive than other mortgage programs. Florida first time home buyers and moving up buyers can purchase a home with less than 3.5% downpayment or easily FHA refinance a home up to 96.5% of the home value.

START NOW >> FHA loans to buy a home Or FHA mortgage refinance.

Key Advantages For Homebuyers and Homeowners

Easier to Qualify- As a result of the FHA guarantee Florida FHA mortgage lenders like us are more willing to be more flexibility in qualifying. FHA mortgage insurance provides security for the lender making it easier for Florida mortgage applicants with low credit scores to qualify. FHA loans are granted based upon a common sense approach to mortgage lending rather than a credit score driven approach. Florida home buyers and homeowners that can prove the ability to make timely payments will be approved for an FHA home loan regardless of past credit issues.

Minimal Down Payment- FHA mortgage loans require minimal down payment and the down payment can come from a family member, charity, or your employer. Although the FHA loan does not have a no money down mortgage option yet, we can point you to many Florida down payment assistance programs that work well.

Costs Less- FHA mortgage loans have regulated closing cost and have better interest rates because FHA the FHA loan is insured by the Federal Government. Conventional loan are not guaranteed therefore Florida mortgage lenders face greater risk when borrowers default.

Less than Perfect Credit- Florida loan applicants that have had credit problems, such as bankruptcy or a foreclosure, have a better chance of getting approved for an FHA loan than a conventional loan. Florida FHA Loan applicants with past credit issuers that can now shown timely payment history have a much greater change of being approved for an FHA mortgage loan.

Help You Keep Your Home-The FHA loan program has been around since 1934 and will continue to be here to protect you when other mortgage programs are no longer available. Should you encounter a temporary hardship after buying your Florida home, FHA loans have many options to help save your Florida home and avoid foreclosure.

Have Questions? Fill out a Quick Response form or (Apply Now).

Most Common Florida FHA Loan Questions

What is an FHA loan? The FHA loan is a government insured mortgage loan created to increase home ownership and make it easy to purchase or refinance a Florida owner occupied home. FHA loans are funded by private Florida mortgage and HUD/FHA guarantees to the these FHA mortgage loans. As a result of FHA's guarantee Florida FHA loan applicants find that qualifying for an FHA Mortgage is easier and less expensive than any other mortgage loan programs.

Why should I consider an FHA mortgage to purchase or refinance of my Florida home? The FHA loan has more benefits for Florida home buyers and homeowners than any other mortgage. FHA loans come with better interest rates and approvals are based upon a common sense approach and not tied to a Florida mortgage applicants credit score but rather the FHA loan is approved based upon payment history.

Do I have to be a first time home buyer to use an FHA loan? No, you can use FHA loan as many times as you desire when buying a home or refinancing your mortgage. The only guideline is that you cannot have more than one FHA Mortgage loan outstanding at a time with a loan to value of more than 75% of the home value. Investors that own rental property may use an FHA loan to purchase a primary residence.

What's the minimum credit score needed for an FHA loan? Under FHA guidelines there is no minimum credit score. FHA approved mortgage lenders have set their own minimum credit score requirements to weed out the highest risk borrowers. Most FHA mortgage lenders have a 640 minimum credit score requirement. We have a minimum credit score requirement of 530.

I have collection on my credit report will this affect my ability to get approved for an FHA loan? Borrowers with collections within the past 12 months will be approved as long as the borrower can provide detailed letter of explanation for each collection account.

What is a streamline refinance? The greatest benefit of having an FHA loan is having the ability to Streamline refinance your current FHA mortgage. An FHA streamline refinance is a very easy way for current FHA borrowers to refinance an FHA loan without having to "re-qualify" or re appraise the home. With an FHA streamline refinance borrower can only change the interest rate and term of their current FHA Mortgage.

Does FHA offer 100% financing? No FHA does not offer a 100% financing option. However FHA allows the seller to cover up to 6% of the buyers closing cost and the minimal down payment requirement is allowed to come from a Grant, Family or Friend.

How long after a Foreclosure can I use an FHA loan to buy a Florida home? You must wait a minimum of 3 years after the foreclosure to qualify for an FHA loan.

How long after a Florida bankruptcy can I use a FHA mortgage to buy or refinance a Florida home? After a chapter 7 bankruptcy a Florida home buyer can purchase a home after 2 years. After a chapter 13 bankruptcy Florida home buyers can purchase a home after 12 months on time payment history.

How long does it take to of close on a Florida home using the FHA Mortgage? Closing on Florida home purchase and loan can take up to 30 days. But with a clear title, fast appraisal and all needed documentation in we can close easily Florida home purchase within 2 weeks depending upon funding turn times.

Have Questions? Fill out a Quick Response form or (Apply Now).

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Florida FHA Mortgage Lender - Specialized in FHA loans

02-16-10

Thomas Martin

Florida FHA Mortgage Lender - Specialized in FHA loans

With the recent Florida mortgage problems suffered by sub prime Florida mortgage lenders, the FHA loan is making a strong comeback for Florida home buyers and current homeowners in need of an Florida FHA mortgage refinance. FHA loans are funded by private mortgage lenders like us and guaranteed by the US Government. As a result of the FHA mortgage guarantee Florida home buyers and homeowners find that qualifying for an FHA loan is easier and less expensive than other Florida mortgage programs. Florida first time home buyers and moving up buyers can purchase a home with less than 3.5% down payment or easily FHA refinance a home up to 96.5% of the home value.

START NOW >> FHA loans to buy a home Or FHA mortgage refinance.

Key Advantages For Homebuyers and Homeowners

Easier to Qualify- As a result of the FHA guarantee Florida FHA mortgage lenders like us are more willing to be more flexibility in qualifying. FHA mortgage insurance provides security for the lender making it easier for Florida mortgage applicants with low credit scores to qualify. FHA loans are granted based upon a common sense approach to mortgage lending rather than a credit score driven approach. Florida home buyers and homeowners that can prove the ability to make timely payments will be approved for an FHA home loan regardless of past credit issues.

Minimal Down Payment- FHA mortgage loans require minimal down payment and the down payment can come from a family member, charity, or your employer. Although the FHA loan does not have a no money down mortgage option yet, we can point you to many Florida down payment assistance programs that work well.

Costs Less- Florida FHA mortgage loans have regulated closing cost and have better interest rates because FHA the FHA loan is insured by the Federal Government. Conventional loan are not guaranteed therefore Florida mortgage lenders face greater risk when borrowers default.

Less than Perfect Credit- Florida loan applicants that have had credit problems, such as bankruptcy or a foreclosure, have a better chance of getting approved for an FHA loan than a conventional loan. Florida FHA Loan applicants with past credit issuers that can now shown timely payment history have a much greater change of being approved for an FHA mortgage loan.

Help You Keep Your Home-The FHA loan program has been around since 1934 and will continue to be here to protect you when other mortgage programs are no longer available. Should you encounter a temporary hardship after buying your Florida home, FHA loans have many options to help save your Florida home and avoid foreclosure.

Have Questions? Fill out a Quick Response form or (Apply Now).

Most Common FHA Home Buyer Questions