The FHA home loan continues to be a popular home financing option for home buyers in Daytona Beach. But it’s important for buyers to understand what they are getting. Being a Government-backed program, the FHA mortgage is one of the most conservative mortgages available today. Low down payment of only 3.5%, and even 100% FHA financing options in some cases with down payment assistance. No prepayment or early payoff penalties, and many fixed rate options are just a few of the FHA loan benefits.
Below, we have listed basic information you need to know before applying for an FHA loan in Daytona, whether it’s a purchase or refinance. Questions? Please contact us at the number above, or just submit the Quick Request Form on this page.
- The Department of Housing and Urban Development, otherwise known as HUD, oversees the Federal Housing Administration (FHA) which is the administrator of the government’s home loan insurance platform. The FHA insures the loan of a qualified borrower for the lender. FHA loans are underwritten and processed by approved Florida FHA lenders and banks.
- The FHA loan qualifying is not as hard as conventional loans that are sold off to the Federal Home Mortgage Corporation (Freddie Mac) or to the Federal National Mortgage Association (Fannie Mae). It is more flexible than almost any other conventional loan program available today in Florida.
- Many buyers have believe the FHA mortgage is strictly for first-time home buyers which is incorrect. FHA is available to any qualified buyer and may be used to either refinance or purchase a home. They also do not require your current loan to be an FHA loan when you wish to refinance your debts and obligations.
- When applying for an FHA mortgage loan, it is important to always have income/ asset documents on hand to facilitate processing. The program requires an accurate count of your expenses and stable income.
- If you have great credit (over 680 credit score) and especially 10% or more for a down payment, you may want to opt for a conventional loan. Most often than not, you may find even better deals from them compared to an FHA loan.
- FHA loans can be used for any HUD-approved single family home, condo or town home in Volusia County. The home being purchased must be in generally good repair with regard to structural, electrical, plumbing, roof, etc.
- FHA has generous loan limits – currently $541,287 for 1 unit properties in Volusia County. Some Fla counties are even higher.
Please read more about FHA loans here, please contact us to learn more and how to apply.