Core Mortgage Financial is proud to be known as the Florida experts in the area of FHA home loans. With our massive lender resources, we can help borrowers obtain FHA mortgages at the most competitive rates.
An FHA mortgage is a government-backed home loan that has less stringent down payment and credit requirements than those for conventional loans. The program has been around since 1934 and has helped over 34 million people become homeowners.
Advantages of FHA mortgages:
- Lower down payments – An FHA mortgage in Florida currently requires a down payment as low as 3.5% on maximum loan amounts between $271,050 and $529,000 for single-family homes, depending on the county where the home is located (see below)
- Easier Underwriting Requirements– FHA allows higher debt to income requirements, collections do not need to be paid and non-owner occupant co-borrower can apply with borrowers.
- Lower credit requirements – Home buyers may qualify for FHA home loans even without good credit or a long credit history. To get the low down payment of 3.5%, the borrower generally needs a credit score of 580 or higher. A higher down payment of at least 10% is usually required if the credit score is between 550 and 579. People with credit scores under 550 are generally ineligible for FHA loans.
Examples of current FHA loan limits for some of our Florida cities include:
- $294,515 in Bonita Springs, Cape Coral, Fort Myers, Tampa
- $294,515 in Orlando
- $299,000 in Sarasota
- $343,850 in Jacksonville
- $345,000 in Miami
- $450,800 in Marco Island, Naples
Disadvantages of FHA mortgages:
- Annual mortgage insurance premium – FHA borrowers are required to pay an annual mortgage insurance premium of up to .85% that will be added to the monthly mortgage payment. It varies based on the length of the loan, the amount borrowed and the initial loan-to-value ratio, or LTV.
- Upfront mortgage insurance premium – The FHA also charges an upfront mortgage insurance premium of 1.75% of the loan amount if the borrower’s down payment is less than 5%. This premium can be financed as part of the loan amount.
Core Mortgage Financial will help you evaluate the different costs, interest rates and underwriting standards of FHA-approved lenders to make sure you get an FHA loan that’s the best fit for you.
Alternatives to FHA Home Loans
An FHA mortgage may be a good fit if you have less-than-excellent credit or limited cash for a down payment, but there are other opportunities Core Mortgage Financial can help you explore. One example Core can do a manual undewrite mortgage down to a 580 middle credit score.
Families with low to moderate incomes may qualify for down payment assistance programs offered by Florida’s housing finance agencies or other programs offered by city and county agencies. These programs may offer down payment and closing costs assistance to eligible borrowers to make your home more affordable.
And there’s more good news! In today’s mortgage market, there are other home loan programs that require little or no money down. And the Core Mortgage Team has the expertise to help you find the right lender to meet your unique needs.
If you are lucky enough to have a low debt-to-income ratio of 50% or less, you may actually qualify for a conventional mortgage.
For single-family home loans under $453,100 Fannie Mae and Freddie Mac offer fixed-rate mortgages that require only a 3% to 5% down payment.
If you are a current member of the U.S. military or a veteran, you may be eligible for a VA Home Loanwith little or no down payment. Mortgage insurance is not required, and bankruptcy and other derogatory credit do not immediately disqualify you.
The U.S. Department of Agriculture also offers a 100%, no-down-payment mortgage. The program is formally known as a Section 502 mortgage, but it’s more commonly called a Rural Housing Loan or a USDA Loan. And, it’s not just a “rural loan.” USDA loans are available to buyers in suburban neighborhoods, too!
Core Mortgage Financial is the right choice if you are looking to purchase a home or refinance.
Our corporate headquarters is conveniently located in Naples, Florida. We have specialists in FHA loans and other mortgage packages standing by to take your call 24 hours a day and 7 days a week. Call us today at (855) 554-CORE or (239) 514-2674 for help finding home loans and mortgages at the most competitive wholesale rates.
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