FHA remains a popular choice for home buyers in Florida, especially first time buyers. In regards to home mortgages, very careful steps have to be taken and each one considered in-depth since we are dealing with a commitment that will last for many years.
Being overly anxious to acquire a home and finally getting it only to be forced to let go of it after a few years is pretty much the extremes of emotional ups and downs, to say the least. Therefore, to aid individuals who are either first time FHA loan borrowers or repeaters, here is a list of the top things you should know before applying for an FHA loan.
- The Department of Housing and Urban Development, otherwise known as HUD, umbrellas 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.
- The FHA loan is not as rigid 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 lender’s offers.
- Numerous individuals have this belief that FHA loans are strictly for first-time home buyers which is, of course, untrue. This type of loan is available to everyone 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.
- You can get an FHA loan even if it’s your fourth home already.
- One setback to obtaining an FHA loan is that the administration puts a limit to the allowable loan for a borrower. Contact us to discuss the FHA loan limits in your county.
When getting an FHA mortgage loan, it is important to always have pertinent documents regarding your income and credit status on hand to facilitate processing. They would require details of income (W2& tax returns) as well as bank account statements, etc.
FHA is a great option for home buyers that want to purchase with little down payment. In fact, FHA only requires 3.5% down for any approved single family home, condo or townhome. However, If you are a homebuyer that has good credit and 10% or more down payment, you may want to check into the conventional mortgage options. You may find even better deals from conventional loans because there is no upfront mortgage insurance premium. Whatever the case may be, it is always good to spend time researching all your options. Call us today at ph: 904-810-2293 to discuss all the different loan options for you.