What is an FHA Loan?
Florida Home Loans by Atlantic Mortgage & Finance offers government-backed FHA loans, insured by the Federal Housing Administration (FHA), specifically designed to assist low-to-moderate-income borrowers. With more flexible lending requirements compared to conventional loans, our FHA loans provide an accessible path to homeownership for those seeking a mortgage solution that suits their unique financial situation.
FHA Loan Requirements: How to Qualify
Florida Home Loans understands that first-time homebuyers often face the challenge of smaller down payments or lower credit scores. That’s why we offer FHA loans with more flexible underwriting guidelines. These loans are designed to appeal to those who may not meet the conventional loan requirements. To qualify for an FHA loan, borrowers need to meet certain basic requirements. Take a look below to see if you qualify for an FHA loan.
- Down Payment
- Down payments for FHA loans may be as low as 3.5% of the purchase price. However, the down payment amount may be dependent on your credit score.Plus, if you are having trouble saving for a down payment, gift funds may be allowed.
- Credit Score
- The minimum credit score allowed is 500, although you will need at least a 580 score to qualify with the minimum down payment of 3.5%. If your score is below 580 the minimum down payment is typically 10%.
- Mortgage Insurance
- Mortgage insurance is required for all FHA loans. The insurance is required to be paid upfront (at closing) and as an annual premium.
- Income History
- The lender will verify that you have a steady income and employment history.
What are FHA Loan Amount Limits?
FHA loan limits are based on the conforming loan limits, which vary based on the housing type, state, and the country in which the property is located. Contact a mortgage specialist to learn more about the FHA loan limits in your area.
What are the benefits of an FHA Loan?
There are several benefits associated with getting an FHA loan, including:
- Increasing people’s access to homeownership by allowing for smaller down payment amounts.
- Help homebuyers with lower credit scores qualify for a loan.
- Multiple loan terms available: 30-year fixed-rate,15-year, etc.
- Available on 1-4 family dwellings.
What are the different types of FHA Loan?
We offer several types of FHA loans, including:
- 203(b) FHA loans represent the conventional form of FHA financing, enabling home purchases with a minimal down payment requirement of 3.5%. These loans can be utilized for acquiring single-family homes, secondary residences, or multi-family dwellings.
- 203(k) FHA loans are designed to finance the purchase and renovation of a home, consolidating the repair costs into the mortgage. This program is particularly attractive to buyers interested in acquiring homes that need fixing up.
- 203(h) FHA loans are specialized mortgage options designed for victims of presidentially declared disasters. They offer the opportunity to rebuild or purchase a new home with no down payment, facilitating the recovery process. This loan type is applicable to single-family homes, providing financial support to those affected by significant disasters.
FHA Loans vs. Conventional Loans
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With our extensive 20 plus years of experience in mortgage financing, we excel in delivering both conventional and non-conventional financing options tailored to suit our customers’ needs. Collaborating with a wide range of investors and lenders, we proudly offer a diverse range of loan programs. Our utmost aim is to provide borrowers with the most optimal financing solutions available.
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