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Buying your first home? If you are a first-time home buyer or have bought a home before and have less than perfect credit you have come to the right place. At Orlando Financial Center our FHA home loan specialists will take you through the loan process step-by-step. The FHA loan program was created to help increase homeownership. The FHA program makes buying a home easier and less expensive than other types of real estate mortgage home loan programs. Some highlights of the FHA loan program are: Minimal Down Payment and Closing Costs. - Down payment is 3.5% of sales price.
- A gift for the down payment and closing costs is allowed.
- No reserves are required.
- Seller can credit up to 6% of sales price towards buyers costs.
Easier Credit Qualifying Guidelines such as: - Minimum FICO score is 620.
- Alternative credit is also acceptable for those who have not established a credit history. For example, by providing satisfactory credit references from a utility company, automobile insurance payments, rental payments etc. where there is no less than 12 months in duration.
Easier Debt Ratio & Job Requirement Guidelines such as: - Higher Debt Ratio's than other home loan programs.
- Less than two years on the job is allowed.
- Self-Employed individuals o.k.
In most cases, when you obtain an FHA Loan, lenders can offer you lower, more affordable rates. This is possible because the FHA insures lenders, so they have less risk by taking you on as a borrower. FHA loans are funded by financial institutions such as mortgage centers or banks. The Federal Housing Administration is a branch of the Department of Housing and Urban Development and provides lenders with insurance on your loan. The FHA is here to help you become a homeowner. FHA FREQUENTLY ASKED QUESTIONS
_________________________________________________________________ Is FHA financing complicated? Years ago, FHA financing was more complicated than conventional financing. However changes over the years have streamlined the FHA loan process and in many cases, FHA home loans are easier than conventional financing. Who qualifies for a FHA home loan? The program is open to virtually everyone. There are a few restrictions placed upon credit and residency that may preclude someone from obtaining a FHA home loan. Is there a maximum amount I can borrow?
Yes, FHA regulates the maximum mortgage amount. The following are the UPDATED MAXIMUM LOAN LIMITS UNTIL DECEMBER 1, 2009 in these Central Florida Counties:
Orange County $353,750
Osceola County $353,750
Seminole County $353,750
Volusia County $303,750
Lake County $353,750
Polk County $271,050
Is it true that the down payment can be gifted? Yes. Current FHA guidelines permit a relative, a governmental agency, or approved non-profit organization to gift the borrower's down payment. A gift, according to HUD, is just that--a gift. HUD does not permit the borrower to repay the gift as a stipulation of giving the gift. What is the minimum amount of money I need to buy a home with a FHA mortgage? The National Housing Act requires the minimum cash investment to be 3.5% of the sales price.
I have had a bankruptcy in recent years. Can I get a FHA loan? Generally a bankruptcy will not preclude a borrower from obtaining a FHA loan. Ideally, a borrower should have re-established a minimum of two credit accounts (such as a credit card, car loan, etc.) and wait 2 years since the discharge of a Chapter 7 bankruptcy or have a minimum of 1 year of repayment with a Chapter 13 (the borrower must also seek permission of the courts to allow this). Furthermore, the borrower should not have any late payments, collections, or credit charge-offs since the discharge of the bankruptcy. If a borrower has suffered through extenuating circumstances (such as surviving cancer but had to declare bankruptcy because the medical bills were too much), special exceptions can be made (rarely). If you have any questions with regards to FHA loans, please call 407-839-6060 or Email: Mortgage@OrlandoFinancial.com
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