Florida FHA mortgage, Questions and Answers

 Florida Mortgage Questions? And Answers?

Q: What is a FHA mortgage?

A: An FHA mortgage is a mortgage insured by the Federal housing administration. The FHA does not lend money; FHA only insures private FHA approved lending institutions, such as banks, credit unions, or savings and loans that lend money. A FHA-approved mortgage loans are insured to the lender in case the homebuyer defaults on the loan. Because FHA mortgage are insured you can finance up to 97% of the purchase price and the seller can pay up to 6% of your closing cost. Making the FHA mortgage the most affordable choice for Florida homebuyers.

Q: What is FHA mortgage insurance, and how does it apply to FHA mortgages?

A: FHA Mortgage insurance is required to secure a FHA mortgage. FHA Insurance proceeds are collected by the FHA approved lender (the bank, credit union, or savings and mortgage) and paid to the FHA. If a Florida buyer defaults on the mortgage, the money will be returned to the lender in the form of insurance against the default. There are 2 premiums that FHA mortgage loans require. The UFMP 1.75 financed into the purchase and MIP of .55% per year included in the payments. Private mortgage insurance may be required until 20 percent of the equity in the home has been paid. No other mortgage program provides Florida homebuyers to purchase a home with 96.5% financing. No other mortgage program provides 96.5% financing with No min credit score requirement.

Q: What are the advantages of a FHA mortgage?

1. A: There are many advantages of a FHA mortgage. First is that FHA mortgage loans have no minimum credit score requirements. FHA approved lenders set their own minimums. Typically the down payment requirement is only a 3.5 percent down payment is required to secure a FHA mortgage. Unlike conventional home loans the down payments can   be a gift from a family member or Grant. In addition, the credit qualifications are easier and lenders can use compensating factors to approve FHA mortgage applicants. For example, Bankruptcy or foreclosure does not disqualify a borrower from approval if the processes have been completed within the required time period.

Q: What type of Florida home can I purchase with an FHA mortgage?

A: Florida first time homebuyers or moving up buyers can utilize FHA mortgage insurance to purchase a single-family, condo, town home, modular or manufactured home within the Florida FHA lending limits.

 Q: Are FHA mortgage loans more complicated than conventional?

A: No, FHA mortgage financing procedures have slimmed down in the past 20 years. In some cases, it is easier to qualify for a FHA mortgage than it is for a conventional mortgage.

Q: Who is eligible for a FHA mortgage?

A: Anyone who has stable, predictable income likely to continue and meets the credit, income, and employment requirements is eligible for a FHA mortgage. U.S. citizenship is not required for a FHA mortgage. FHA only approved Florida home loans secured with the mortgage must be the Florida homebuyer’s primary residence. A social security card is necessary to qualify for a FHA mortgage.

Q: What are the interest rates on FHA mortgages?

A: Florida FHA mortgage interest rates are on par with the national average for conventional mortgages. Florida FHA mortgage interest rates reflect current market conditions and very depending on Florida market conditions.