Written by Administrator
FLORIDA FHA LOAN SPECIALISTS
FHA stands for the Federal Housing Administration. FHA was created in 1934 to help Americans realize the dream of Home ownership. FHA was absorbed into HUD in the 1960s and is now known as HUD-FHA.
There are a great many benefits to the Florida FHA loan program. Florida FHA loans are insured by the US government. They provide lenders with greater security than they get when they write traditional loans. HUD sets the basic FHA guidelines for lenders, however lenders are able to add on their own specific requirements. This is why not all lenders are able to offer Florida FHA loans to the same individuals. It is very important that you deal with a company well versed in FHA loans and that knows exactly how to take advantage of all of their great features.
Click Here To View Our FHA Video
Most other banks and lending institutions require a middle score of 620 for any FHA loan, however at Five Stars Mortgage we are still able to extend FHA financing to anyone with a middle credit score of 580 or higher. For those with credit scores worse then 580 other Florida hard money options may have to be considered if your score can't be boosted into the 580 range.
Here are some of the prime benefits of an FHA loan:
- Low down payment of 3.5%
- Very low mortgage insurance coverage (typically 50%-75% lower than conventional mortgage insurance)
- Co-signers (including non occupant co-signers) are allowed
- No income limitations at all
- No approved zoning requirements
- Mobile Homes loans are allowed
- 95% loan to value on cash out
- No reductions to loan amount for declining markets
- Not credit driven (low credit scores receive the same great rates as high credit scores)
- No need to pay off medical or small collection accounts (letters of explanation are used)
- Resident aliens are allowed
- No prepayment penalties EVER
- Security of a 30 year fixed mortgage
- 6% seller contribution are allowed for closing costs (no money out of pocket for buyer!)
- Ability to use non tradition trade lines to qualify (phone bills, light bill, electric bill, cell phone bill, etc..)
- High debt to income ratios up to 42% and up to 50% with compensating factors
- Compensating factors such as length of time on the job or funds in reserves help overlook negative factors
- No reserves required from buyer
- Gifts are allowed from family, friends, work, or other interested parties
- Down Payment Assistance Programs allowed
Florida FHA loans are very popular right now as they allow first time home buyers and people with challenged credit access to low cost secure fixed rate mortgage.
We also offer several variations of FHA loans such as:
Contact us now or apply online and let us get you pre-qualified for an FHA purchase or FHA refinance today!