Buying a new home can be one of the most exciting experiences of your life, but, sometimes, homeownership can seem a lifetime away. The Federal Housing Administration (FHA) mortgage program offers several benefits for borrowers in Estero and Lee County, Florida, including a down payment as low as 3.5%!
In contrast to conventional home loan programs, FHA mortgages are an outstanding option if you have less than stellar credit or little cash saved up for a down payment. They can also be easier to qualify for as a result of lower credit score requirements and higher debt-to-income ratios.
Core Mortgage Financial is dedicated to making your dream of homeownership come true!
We can help you learn more about FHA home loans in Florida, find out if you qualify, and avoid the red tape and bureaucratic hassles that often come along with government loan programs.
Benefits of FHA Home Loans
The advantages of FHA loans over conventional loans include:
- Flexible credit requirements – The FHA does not require perfect credit and considers a borrower’s complete credit history, regardless of credit score. Even borrowers with a recent foreclosure, short sale or bankruptcy may be eligible for FHA financing. If the amount of debt you have is relatively high compared to your income (your debt-to-income ratio), you may still qualify for an FHA loan.
- Low down payment required – For today’s home buyers, there are few mortgage options that allow for down payments of 5% or less. The FHA is one of them. FHA Mortgages generally require as little as 3.5% down on the purchase of a home. They also feature some of the lowest closing costs, potentially leaving more money in your pocket.
- All types of property – FHA home loans are available to qualified buyers on single-family homes, duplexes, multi-family homes with up to four units, condominiums, mobile homes and manufactured homes anywhere in the United States or a U.S. territory. To qualify for an FHA mortgage on a multi-unit property, you must occupy at least one of the units.
- Extended loan sizes – The FHA mortgage loan limit in Lee County, Florida for single-family residences is $294,515; however, the limits are higher in certain areas, including Broward County ($345,000), Collier County ($450,800) and Monroe County ($529,000). For 2-unit, 3-unit and 4-unit homes, FHA loan limits are even higher, ranging up to $1,202,925 in some areas.
- Easy refinancing – The FHA Streamline Refinance program enables homeowners to refinance up to 97.75% of their home’s value without credit score checks, income verifications or home appraisals.
One disadvantage of an FHA mortgage is that borrowers are required to pay an upfront mortgage insurance premium of 1.75% of the loan amount if the down payment is less than 5%. This premium can be financed as part of the loan amount. FHA borrowers also must pay an annual mortgage insurance premium of up to .85% that will be added to the monthly mortgage payment.
Would you like to receive more information or apply for a FHA loan? Core Mortgage is the right choice!
We have specialists in FHA loans who can help you evaluate the different costs, interest rates and underwriting standards of FHA-approved lenders, and find an FHA loan that’s the best fit for you.
Call us 24 hours a day, 7 days a week at (855) 554-CORE or (239) 514-2674 or use our online form to find Estero home loans and mortgages at the most competitive rates.
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