What
is an FHA loan?
An
FHA loan is a mortgage issued by federally qualified lenders and
insured by the Federal Housing Administration (FHA). FHA loans are
designed for low to moderate income borrowers who are unable to make
a large down payment. Florida FHA lenders
for loans allow the borrower to borrow up to 97% of the value of the
home. The 3% down payment requirement can come from a gift or a
grant, which makes Florida FHA lenders popular with first-time
buyers. In addition to traditional first mortgages, the Federal
Housing Administration offers a reverse mortgage program known as a
Home Equity Conversion Mortgage (HECM), which helps seniors convert
the equity on their homes to cash while retaining the titles to their
homes.
Why
people go for FHA loans?
People
prefer Florida FHA lenders for loans because of the many benefits
such as low interest rates and more flexible requirements. Lenders
like Mortgageexperts Florida
offer FHA loans at attractive interest rates, with less stringent
qualification requirements. Minimum credit scores for Florida FHA
loans depend on the type of loan the borrower needs. To get a
mortgage with a down payment as low as 3.5 percent, the borrower
needs a credit score of 580 or higher.
Those
with credit scores between 500 and 579 must make down payments of at
least 10 percent. People with credit scores under 500 are generally
ineligible for FHA loans. Florida FHA lenders will make allowances
under certain circumstances for applicants who have what is called
"non traditional credit history or insufficient credit", if
they meet the requirements. Ask your FHA lender or an FHA loan
specialist if you qualify. Contact mortgage experts Florida for all
loan related issues.
