Florida Mortgage Lenders.com is a leading providing of FHA Mortgage Loans.
WHAT IS AN FHA MORTGAGE?
FHA Mortgage loans have been helping Florida become homeowners since 1934. Florida FHA Mortgage Loans are backed by the Federal Housing Administration (Also known as FHA). FHA insures the FHA mortgage so your Florida mortgage lender can offer more risky home loan products. For example: FHA Mortgage loans typically have a lower down-payment and better loan rates for Florida mortgage applicants with lower credit scores. A summary of FHA mortgage advantages include:
During the Florida Housing Boom, FHA Mortgage Loans had become an uncommon Florida mortgage because of the ample supply of credit. Including: Conventional and Fannie Mae Loans with 0% down payment and reduced Florida mortgage documentation requirements. After the Florida mortgage crash, as Fannie Mae and other Florida mortgage lenders retreated from these riskier Florida mortgage products, FHA mortgage loans stepped in and Florida FHA Home Loans became the new and only option for Florida mortgage applicants with limited money and/or down payment with low no credit and even or bad credit Florida mortgage applicants.
WHAT DOES IS TAKE FOR A FLORIDA MORTAGE APPLICANT TO QUALIFY FOR AN FHA MORTGAGE?
• FHA Mortgages are only available for Florida FHA mortgage applicants seeking a primary residence.
• Florida mortgage applicants cannot obtain an FHA mortgage on a 2nd Florida home or investment property.
• FHA mortgage loans only require Florida mortgage applicants to come up with a 3.5% down-payment.
• The maximum cash-out Florida FHA mortgage refinance is 85%.
• Florida FHA mortgage lenders are available for condos- but only if they are listed on the FHA Condo Approval List. Contact Florida-Mortgage-Lenders.com if you have questions regarding the eligibility of a particular Condominium Project.
• Low Credit Scores- Florida FHA mortgage applicants with credit scores as low as 530 can qualify for an FHA mortgage in Florida & borrowers with credit scores under 640 often will receive better interest rates through a Florida FHA mortgage than a conventional mortgage.
• FHA mortgage loans have no prepayment penalty. You can pay the Florida FHA mortgage down or off at any time without a prepayment penalty.
• A Florida FHA mortgage loan has monthly mortgage insurance, but unlike conventional loans, the loan is not re-underwritten by the company providing the Florida FHA mortgage insurance. As a result, the underwriting process on an FHA mortgage loan in Florida is easier than a conventional mortgage that has Florida PMI mortgage insurance.
WHAT ARE THE DISADVIATAGES DO FLORIDA FHA MORTGAGE APPLICANTS FIND WITH THE FHA MORTGAGE?
• The closing costs for a Florida FHA Mortgage are higher than the closing costs on a Conventional Mortgage. Why? The government passes part of the cost of insuring the Florida FHA mortgage to the borrower.
• FHA Up-Front Mortgage Insurance Premium: This is equal to 1.75% of the Florida FHA mortgage amount. The FHA UFMIP is financed into the FHA mortgage amount though so it doesn’t come out of the borrower’s pocket at closing.
• The monthly (MI) mortgage insurance on a Florida FHA mortgage can be more expensive than it is on a conventional Florida mortgage with (MI) mortgage insurance.
• The Florida FHA Mortgage County Loan Limit is often lower than it is on a conventional Florida mortgage. As a result, Florida mortgage applicants often can borrower less money than they would be able to on a conventional Florida mortgage.
WHAT IS A FHA STEAMLINE REFINANCE?
A FHA streamline refinance mortgage is a refinancing option available for Florida FHA mortgage borrowers that currently have an Florida FHA mortgage and are interested in refinancing to a new Florida FHA mortgage. The process of FHA refinancing a Florida FHA mortgage It is called a FHA Streamline because it allows you to lower your FHA mortgage interest rate with reduced documentation and sometimes without an FHA appraisal. To qualify for an FHA streamline refinance your current Florida FHA mortgage borrowers must be current and in good standing and there must be a net-tangible-benefit to the borrower. The FHA mortgage monthly payment and interest rate must decrease for the Florida FHA Mortgage Company or Florida FHA Mortgage Lender to approve an FHA streamline refinance.