FHA loans are insured by the Federal Housing Administration and issued by an FHA-approved lender (not the FHA itself). Borrowers within particular credit score ranges may qualify for FHA loans that have lower down payment than conventional loans. For that reason, this type of home loan is a popular option among first-time homebuyers. However, FHA loans are available to buyers of all kinds.
There are many benefits to taking out an FHA loan in Florida. First, you’ll only need a down payment of 3.5% of the home’s purchase price (as opposed to the 20% required for most conventional loans). Additionally, FHA loans usually have more lenient credit requirements than conventional loans, so you may be able to qualify even if your credit score isn’t perfect.
Of course, there are also some drawbacks to FHA loans. One is that you’ll have to pay mortgage insurance premiums (MIP) both upfront and annually. These MIP payments can add up over time and make your loan more expensive than it would otherwise be. Additionally, FHA loans have stricter guidelines for borrowers and property appraisals than some other loan types, so it’s important to make sure you meet all the requirements before apply.
For more information on FHA loans and how to obtain one, please contact a loan officer from The Wholesale Mortgage Firm today. We are here to help you every step of the way!
3.5% or 10% Min
* Down Payment Requirement Dependent on Credit Score
** DTI Ratios above 43% subject to lender approval
Getting a mortgage can be a challenging and time-consuming process… but we’re here to help you.
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