Great news for Broward and Palm Beach County home buyers looking to purchase a home with little down payment. The FHA mortgage program still allows low down payments for home buyers and flexibility that can’t be found with conventional loan programs. Low interest rates and affordable property values makes this a great time to purchase. Below we will discuss some highlights of the FHA loan, and how to be ready when doing an FHA loan application.
To start, let’s take a look at some of the FHA mortgage benefits:
- Low 3.5% down payments:
You may be able to purchase a home in West Palm Beach and surrounding areas with as little as 3.5% down. Conventional loans generally require 10% or more making the program out of reach for most first time home buyers.
- Closing costs and seller concessions:
FHA permits the home sellers to pay up to 6% of the buyers closing costs, more than enough to cover most home purchases.
- No early payoff or pre-payment penalties with FHA:
You can make additional payments toward your principal balance and speed repayment of your home loans anytime. Pay off in full anytime without penalty.
- Easy credit and qualifying requirements:
If you have a limited credit past or are concerned about your credit, you may still be able to get pre approved for an FHA home loan. Please do take note that the min 620 credit is required by most Florida lenders and banks.
FHA continues to be one of the most popular programs for first time home buyers in Broward and Palm Beach County. Home buyers should be prepared with the following before starting the loan application process.
- Primary and Co-Borrower income, current and full two year history – W2, tax returns.
- Bank account statements including checking, savings and retirement accounts.
- County / City where you are planning on buying your home.
- Desired property type, single family home, condo, etc.
- Primary and co-applicants social security numbers for credit report.
If your loan needs some help for qualifying, remember, FHA does permit for non occupying co-borrowers – any direct family member who can help the file. Co-Borrowers can bring more income or a stronger credit profile to the file and help you immensely in qualifying. Keep in mind a non occupying co borrowers good credit does NOT take the place of poor credit from the primary borrower.
Take a few min to read all the FHA mortgage requirements by clicking here.
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