In Florida, FHA mortgages are extremely popular. Little down payment is required and you don’t need perfect credit, and the best part… you STILL get the low interest rates! Let me tell you what you need…

First, let’s talk about what exactly is an Florida FHA loan because you are probably thinking this sounds too good to be true. An FHA mortgage is issued by federally qualified lenders and insured by the Federal Housing Administration. That means that they are government loans just like USDA & VA. To get a USDA you must be zoned agricultural and VA you have to be a veteran to be eligible. Unlike the other 2, FHA is for everyone!

So, what is required to get an FHA loan you ask?

You need 2 years worth of documented work history. That means you have to be able to prove it with either tax returns or W2’s. It doesn’t have to be 2 years at the same employer, but it does help if its 2 years in the same line of work. They are sometimes able to look past it if you were in college and you now work with your degree.

Credit. That’s a scary word for many people. You walk into a bank with anything under a 620 credit score… well, you pretty much get thrown out! FHA is a bit more lenient. We have a program that allows you to have a 580 or higher middle score (that means out of the three credit bureaus, not the highest nor the lowest… the one in the middle) So, what can you have on your credit? They are pretty strict when it comes to other government loans on your credit report though. Student loans must be current. Bankruptcies and Foreclosures must be at least three years old. Chapter 13 bankruptcies are allowed as long as they have made 12 months payments on time.

Down payments are a necessity when it comes to buying a house. Most lenders for conventional financing require 20% down. That’s a lot of money. If the loan you are trying to get is $100k, well, then you need to bring 20 thousand dollars to the table!!! Who has that now days with this economy? FHA only requires you to bring 3.5% down. That’s a huge difference.

You are probably thinking that with all of these benefits, that there has to be a down fall. Right? It has to be in the rates… right? Well, you are wrong. FHA has the same low rates as conventional! You can get FHA loans right now for as low as 4.875% on a 30 year fixed (which I forgot to mention, all FHA loans are 30 year fixed, with no Pre Payment Penalties!)

So what are you waiting for? If you are in the market for a home call us, go on line and chat with us or even email us. We are here for you!

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This entry was posted on Sunday, October 4th, 2009 at 2:30 PM and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.