Florida FHA Loans

Florida FHA loans can be used to receive more affordable interest rates, negotiate better loan terms or even secure a loan if you have little or no money for a down payment.  You can utilize a Florida FHA whether your household contains a single parent or you live in a multi-parent household.  People use FHAs to remodel their home, purchase a new property or make energy-efficient improvements on their home.  There are a lot of scenarios in which a Florida FHA can benefit you.

Florida FHA Loan Benefits

If you are having trouble qualifying for a traditional mortgage loan, then you should consider a Florida FHA loan.  They are easier to qualify for when refinancing your home loan.  The FHA does not loan you money directly.  Instead, it will guarantee the loan or portion of the loan, so you can go to a lender with less of a risk.

Once a lender sees that you have an FHA guarantee on your loan, they will be more likely to offer you the home loan.  The reason is that if you are unable to make mortgage payments, default, or go into foreclosure, the lender will get their money back.  This is because a Florida FHA guarantees a percentage of the loan.  In the unfortunate event were the mortgage is defaulted, that percentage will be paid directly to the lender.

Do You Have To Have Outstanding Credit to Qualify for a Florida FHA?

Not necessarily.  A perfect credit score can help, you do not need perfect credit to refinance with a Florida FHA loan.  There are certain standards that you have to meet, of course, but they are not as strict as with traditional loans.  Even in instances where credit is not ideal, a lender will be more likely to grant you the loan because of the guarantee on the loan.

If you're going with a traditional mortgage loan, you are usually required to put down 20% of the loan as a down payment.  But what do you do if you are unable to make a large down payment?  Even if you are unable to make any down payment, an FHA loan can help you.  First of all, they usually only require 3% of the loan as a down payment.  Even if you cannot meet the 3%, a Florida FHA loan will allow you to receive the 3% as a gift.  Usually traditional lenders do not allow gift funds as down payments.

With an FHA, a friend or relative can loan you the money, or you can even go through a down payment gift program to help you meet the requirements to receive the loan.  This is particularly useful in instances where you are refinancing and using the equity you have built up in your home.

Many people have found that they received a lower rate when refinancing a mortgage with an FHA loan as opposed to a traditional loan.  Again, since risk is minimized with FHA loans, lower interest rates and prime rates can be offered.

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