Why should Florida homebuyers choose an FHA mortgage?

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Why should Florida homebuyers choose an FHA mortgage?

Posted on13 November 2009.

Why Florida homebuyers should consider and FHA home loan? Why should Florida homebuyers choose an FHA mortgage?

There are many good reasons why Florida homebuyers to choose an FHA loan over a risky subprime or conventional home loan, especially if one or more of the following apply to you:

If you’re a Florida first-time homebuyer or current Florida homeowner
If you want to keep your Florida monthly mortgage payments as low as possible
If you’re worried about your Florida mortgage monthly payments going up
If you’re worried about qualifying for a Florida home loan
Your a Florida homebuyer and you don’t have perfect credit
Your a Florida homebuyer and If you don’t have a lot of money to put down on a Florida home.
Your a Florida homebuyer and you’re worried about what will happen if you fall behind on your payments

If any of these issuers describe you, then an FHA loan may be right for you. An FHA home loan mortgage offers many Florida homebuyers benefits and protections that you won’t find in other mortgage loans including:

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed
Seller can credit up to 6% of sales price towards closing and prepaid costs.
100% Financing available
No reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements.
FHA will allow a home purchase 1 year after a Bankruptcy.
FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA mortgage program in Florida, Visit

http://www.fhamortgagefhaloan.com/

FHA mortgage advantages to Florida homebuyers include

Lower rates: A Florida FHA loan has Better interest rates because the Federal government insures the loans for Florida FHA mortgage lenders..

Easier to qualify: Because FHA insures your Florida mortgage, Florida FHA lenders may be more willing to give you loan terms that make it easier for you to qualify.

If you have less than perfect credit: You don’t have to have perfect credit to get a Florida FHA mortgage. In fact, even if you have had credit problems, such as a Foreclosure or a bankruptcy, it’s easier for you to qualify for a Florida FHA loan than a conventional loan.

More protection to keep your Florida home: The Federal housing administration has been around since 1934 and will continue to be here Florida homeowners avoid Foreclosure. After you buyer your Florida home should you encounter hard times after buying your home, the FHA has many options to help you keep you in your Florida home and avoid foreclosure.

FHA does not make Florida mortgage loans to people for a Florida home and it does not set the interest rates on Florida mortgages it insures. FHA insures loans for Florida mortgage lenders against loss. For the best interest rate and terms on a Florida mortgage, you should compare Florida mortgages from several different Florida mortgage lenders. A Florida FHA-approved lender can help you start the Florida FHA home loan application process.

You may use an FHA home loan to purchase a Florida or refinance a new or existing Florida home 1-4 family Florida home, a Florida condominium unit or a Florida manufactured or Florida mobile home.

What types of Florida home loans does FHA offer?

FHA Fixed rate home loans - Most FHA loans are fixed-rate mortgages (loans). In a fixed rate mortgage, your interest rate stays the same during the whole life of the loan, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

FHA Adjustable rate home loans – Most first-time homebuyers are a little stretched financially, so they want payments as low as possible at the beginning. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT the most widely used index, to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum amount that the interest rate on your loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate, again depending upon the type of ARM you choose. The advantage of an ARM is that you may be able to afford more house; because your initial interest rate will be lower, as will your payment.

FHA 203k Fixer upper home loans - Sometimes you might see a home you’d like to buy, but it needs a lot of work. The FHA 203K has an FHA home loan for rehabilitating and repairing single-family properties called the SF Rehabilitation 203k Loan program (203k). You can get just one FHA mortgage loan which includes the mortgage and the cost of repairs combined. The FHA mortgage amount is based on the projected FHA home value of the property with the work completed, taking into account the cost of the work. The advantage of this FHA home loan is that you can buy a home that needs a lot of work, but you still have only one FHA mortgage payment, and you can complete the repairs after buying the home.