Home Buying Tips: Top 5 Advantages Of Florida Fha Home Loans

By Author: Campbell Amanda
Total Articles: 25
Comment this article

Only a small chunk of home purchases through the Federal Housing Administration were made in Florida during the real estate boom in the U.S. It was almost non-existent because lenders then offered no down payment and interest-only Florida home loans.

As a result of the market decline, Florida FHA home loans are starting to gain popularity. It has several advantages compared to conventional home loans, which are also becoming more difficult o qualify for. If you are new homebuyer, you should first look into Florida FHA home loans that only require low down payments.

Below are some of the advantages of Florida FHA mortgages:

Flexible and Affordable Down Payment Options

When you try to borrow from other lenders, typical home loans will require a down payment of at least 20% of the purchase price. FHA home financing may ask for as little as 3.5% down payment.

Aside from affordable down payments, the FHA also provides a flexible scheme that is very friendly to first-time homebuyers. The down payment for the home may come from another party like a family member, charitable organization, or even as ...
... gift from your employer.

Lenient Credit Score Qualifications

With the government taking a portion of the risk for the home loan, the Federal Housing Administration is a bit lenient when qualifying borrowers based on their credit scores. Lenders who process the Florida FHA home loans may allow borrowers with low credit scores to get a decent interest rates. Of course the borrower must have a stable employment and source of income. People who have gone through bankruptcy or foreclosure may find it easier to qualify for home financing through FHA.

Reasonable Rates

The Federal Housing Administration will not be the one to determine the home loan interest rates. Private lenders will still be the one to evaluate what rates to implement but since the FHA assumes some of the risks of the loan, lenders are more likely to offer competitive rates.

What Property to Purchase

FHA home loans allow a homebuyer to purchase a good selection of properties that may range from single homes, condominiums, new construction houses, or one-to-four family residences.

Easier Qualification

This maybe the most important advantage of Florida FHA home loans. This home financing option has a more relaxed qualification process that allows first-time homebuyers, college students, or people with bad credit to purchase a home. Since it is backed by the government, lenders can be more lenient with the qualifying terms for loan applicants.

Bonus Tips:

There are some problems that you might encounter while processing your Florida FHA home loans.

The FHA has strict home inspection guidelines and requires that the property is livable to boot. If you plan to purchase a home in a not-so-good condition, this might make it not eligible for an FHA mortgage. One way out is to apply for a 203K program that allows funding for homeowners who need to make nonstructural repairs.

Due to the market conditions, a lot of appraisers end up with a value that may not be too low and inaccurate, and this can put your FHA home loan in jeopardy. You can renegotiate the price according to the appraisal or appeal for the reconsideration of property value.

Are you considering to purchase a home in Florida? If you cannot afford a big down payment, Florida FHA home loans might be your best option.Visit http://www.florida-mortgage-specialists.com for more information.