FHA loans are an attractive option, especially for first-time homeowners because it is insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically the borrower can be approved with 3.5% down vs 20% that is required on other loan programs. LJC Mortgage Corp is a leading provider of FHA Loans in Miami, Miami Beach, Hollywood, Miramar, Fort Laudelade and the whole state of Florida. For more information on FHA loans or how to qualify contact an FHA loan Specialist at 786-360-3241.
FHA Loan Requirements
For FHA Loans the down payment is 3.5% which must come from borrower or a gift from a relative is acceptable. FHA allows 100% gift. For FHA loans the minimum credit score is 580; Although we have lenders who will go lower with compensating factors and a bigger down payment. For FHA Loans if borrower has no score and no delinquent credit history; the lender will require 3 sources of alternate credit; that is cell phones, insurance and 12 month rental history. W-2 Borrowers must show employment for at least two years. Self employed borrowers must show two years tax returns. FHA allows for a seller contribution to cover closing cost.
Advantages of FHA Loans
- Lower Credit Score and Down Payment Requirements. In many cases the credit score can be as low as 550 and the down payment per guidelines is 3.5% down
- FHA Mortgage rates are often lower than the conventional loan and often time will give the borrower a credit towards their closing cost
- FHA Loans are assumable with qualifications; which is beneficial to the new homeowner; if for any reason they need to sell the home the new buyer may qualify without having to get a new mortgage…makes closing a lot faster
Mortgage Insurance Premiums
FHA mortgage insurance is required on the life of the mortgage loan. There are two mortgage insurances avaiblible.
- Monthy mortgage insurance premiums. This type is part of your monthly payment.
- Up front mortgage insurance premiums. This type of MIP is financed in the home loan.
FHA Loan Limits
County 1-Family 2-Family 3-Family 4-Family
Miami-Dade $356,500 $456,350 $551,650 $685,550
Broward $356,500 $456,350 $551,650 $685,550
Palm Beach $356.500 $456,350 $551,650 $685,550
Monroe $529.000 $677,200 $818,600 $1,017.300
Osceola $314,827 $403,125 $487,250 $605,525
Orange $314,827 $403,125 $487,250 $605,525
Apply For An FHA Home Loan
If you are purchasing a home an FHA loan is a great option as it has lower down payment requirments and higher debt to income ratios. LJC Mortgage Corp is a leading provider of FHA Loans in Miami, Miami Beach, Hollywood, Miramar, Fort Laudelade and the whole state of Florida. For more information on FHA loans or how to qualify contact an FHA loan Specialist at 786-360-3241.