For many years, FHA loans in Fort Lauderdale and other Florida neighborhoods have been the standard for both first-time and experienced home buyers. The little to no down payment feature of the loans is one reason why it continues to be a popular choice among buyers.
The loans are also favored as they are great for first-timers that have a tight or limited budget of their homes. For some, they offer a more effective financing solution than any other conventional loan does.
The loan also tends to have a high tolerance for low credit scores, allowing people to borrow a higher amount, with respect to their incomes. This is why FHA loans are referred to as first-time home buyer loans.
However, FHA loans may not be the most suitable option for every home buyer. There are various elements and financial details to be considered. Florida State Mortgage Group can help you figure out whether they are the best choice for you or not.
Our loan officers are well-versed in the requirements of FHA loans and can guide you through the application process. You can talk to them to discuss your options and determine your qualification for the loans.
The FHA or the Federal Housing Administration is a U.S. agency and a division of the Housing and Urban Development, which is also known as HUD. FHA is the country’s largest residential mortgage insurer.
The residential mortgages insured by the agency are known as FHA loans. As the loans are backed by a government agency, it allows lenders to offer loans at easier qualification standards.
FHA loans are a popular choice among first-time home buyers. This is because lenders may offer down payments as little as 3.5% to borrowers with a low credit score of 580. They are also more lenient when considering the borrower’s debt to income ratio.
However, you do need to consider the entirety of the payment. The total payment also includes monthly mortgage insurance. The insurance premiums are how the agency is able to protect the lenders.
The product is designed so that the lender will be paid if a borrower defaults on their monthly mortgage payments. In extreme cases, if an FHA loan is foreclosed on, the FHA pays out the lender, transferring the ownership to HUD.
Also, the 3.5% lender credit can be utilized toward the borrower’s closing costs. This may end up in a higher interest rate, but it will simplify new home purchases, especially when there are no Seller Credits available.
Besides traditional FHA loans, borrowers can apply for a 203K Rehab loan. These are suitable for borrowers who are purchasing a home that needs some improvements. It offers all the benefits of an FHA loan and can be used to cover repair costs.
However, this loan is not simple and takes longer to process. It also not recommended for first-time or inexperienced borrowers.
Typically, FHA loans are favored among first-time home buyers and borrowers looking to finance their primary residence. This doesn’t mean that you have to be a first-time buyer to get qualified for an FHA loan.
The loan programs are designed to enable credit-qualified individuals to materialize the dream of owning a home. It does that especially for those individuals that don’t quite fit the requirements for conventional loans.
You can get approved for an FHA loan even if you have:
A low credit score
Adverse credits such as bankruptcy, short-sale/deed-in-lieu, and Foreclosure (the waiting periods are relatively shorter)
A lacking or limited credit history
A high debt to income ratio
Low down payments
FHA determines the loan limits for all loan products it offers across the country. Each year, these limits are revised. They are determined on the basis of the type of property the borrower is looking to purchase and their location. For instance, FHA loans in Fort Lauderdale and other locations in Florida all vary based on which county they are in.
In Fort Lauderdale, the maximum limit for a single-family home is $356,500 while the maximum for a four-plex home is $685,550. Meanwhile, in Monroe County, the limits are higher. The limits for a single-family home are $529,000 and $1,017,300 for a four-plex.
Florida State Mortgage Group, Inc. is located on 1512 E Broward Blvd #204A, Fort Lauderdale. From Fort Lauderdale-Hollywood International Airport (FLL) head northwest toward Terminal Dr/Upper Terminal Dr and use the right 2 lanes to turn slightly right onto Terminal Dr/Upper Terminal Dr. Then use the left lane to keep right at the fork and follow signs for Departures and use the left lane to continue toward US-1 N. Next, keep left at the fork, follow signs for US-1 N/Ft Lauderdale and merge onto US-1 N. After that merge onto US-1 N and keep left to stay on US-1 N. Finally, turn right onto E Broward Blvd and Florida State Mortgage Group, Inc. will be on your right.
We are open Monday - Friday 9am - 6pm, Saturday - Sunday 10am - 4pm.
Florida State Mortgage Group, Inc. is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.