Saturday, November 26, 2016

Florida Buyers Often Ask -What Is An FHA Mortgage loan?

Florida Buyers Often Ask -What Is An FHA Mortgage loan?
FHA loans are issued by federally qualified Florida FHA mortgage lenders and insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development also known as HUD. US Mortgage lenders is one of first 5 star Florida FHA lenders. Florida FHA loans are an attractive option, especially for first-time homeowners due to:
·         FHA Mortgage Loans Allow Lower credit score requirement;
·         FHA Mortgages Have Loan limits specific to county.
·         FHA Mortgage Loans Are Generally easier to qualify than conventional loans;
·         FHA Mortgage Loans Have Lower down payment requirements, 3.5% compared to 5% for conventional loans;
http://www.fhamortgageprograms.com/apply-now/


The Federal Housing Administration, generally known as “FHA”, provides mortgage insurance on loans originated by approved Florida FHA mortgage lenders FHA insures the mortgage of single family and one-to-four family dwellings, multifamily homes including manufactured homes. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. Unlike conventional loans that adhere to strict down payment guidelines, Florida FHA mortgage lenders require very little cash investment to close a loan. The minimum down payment requirement to get an Florida FHA mortgage lenders is 3.5% of the Sales Price. There is also more flexibility in calculating household income and payment ratios. A borrower can have a debt-to-income ratio as high as 55% and still qualify, 57% in some instances with compensating factors.
Florida FHA mortgage lenders make it easier to qualify for as compared to the conventional mortgage loan counterpart. Not only debt-to-income calculation is more lenient, cash reserves are also flexible for FHA loans. There are a lot of misconception by the public about  Florida FHA mortgage lenders. Typically, it is construed as an option only for Florida First Time Home Buyers. This is not true at all because anybody can get an FHA insured Mortgage loan as long as they meet the credit, income and asset requirement set forth by HUD in order to qualify with Florida FHA mortgage lenders. Florida FHA mortgage applicants who had an FHA loan before can get another FHA loan again. It is not limited to a one-time use. The cost of the Florida FHA mortgage insurance is passed along to the homeowner and typically is included in the monthly payment. All Florida FHA lenders must follow this strict guideline.
The Mortgage Insurance Premium or MIP on FHA imposed on an FHA loan is for the life of the loan itself. It cannot be cancelled down the road. The only way to cancel a MIP for an FHA loan is to refinance and convert it from FHA to Conventional, and have a loan-to-value (LTV) under 80%. There are mortgage loan limits that are county specific that lenders must follow as mentioned above. Florida FHA Mortgage loans allow for both Purchase and Refinance transactions. There are also FHA Streamline refinance available to those who already have an existing FHA loan and wish to refinance to another FHA insured mortgage to lower their current rate.


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Location: Florida, USA

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