FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA). FHA loans are available for single family and multifamily homes. These home loans have been helping people become homeowners since 1934. FHA - which is part of HUD - insures the loan, so your lender can offer you a better deal. The FHA doesn't issue loans or set interest rates, it just guarantees against default.
FHA mortgage loan programs allow individuals in Sarasota, FL, and throughout Florida, who may not qualify for a conventional mortgage to obtain a loan, especially first time home buyers. These loans offer low minimum down payments, reasonable credit expectations, and flexible income requirements.
Authorized FHA lenders may approve borrowers with less-than-perfect credit and with as little as 3.5% down payment. Although FHA mortgage loan programs were designed to serve low- and moderate-income home buyers who would otherwise have trouble getting a conventional mortgage; anybody can apply for an FHA loan up to FHA lending limts (by region).
As traditional lenders respond to the recession by making it more difficult to qualify for a mortgage, more borrowers are turning to FHA mortage loan programs.
• Make down payments as small as 3.5%.
• Ge approved despite thin credit or credit history problems.
• Buy not only single-family homes, but condos and mult-unit properties (primary residence).
•Get funding beyond the amount of purchase for renovations and repairs thru FHA 203k program.
• Fund a down payment with gift money or help from seller.
• Higher debt to income (DTI) ratios. Possible to get approved with DTI ratios up to 50%.
• No pre-payment penalty.
• Financial help for seniors? Are you 62 or older? Do you live in your home? Do you own it outright or have a low balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
FHA mortgages in Sarasota, FL and other parts of Florida are proving to be a very popular and reliable loan, as they are a great loan for the broad spectrum of borrowers.