New changes to FHA mortgages will result in increased costs to the Florida home buyer. FHA has lowered the amount of assistance a seller can contribute to a buyer from 6% to 3% and has increased the amount of the upfront mortgage insurance premium 1.75% to 2.25%.
FHA required down payment is still 3.5% for those buyers with a credit score of at least 580. Even with these changes FHA financing is still a strong option for first time home buyers looking to take advantage of low prices and the home buyer tax credit being offered this year.
Related Florida real estate blog post: Financing
Showing posts with label fha. Show all posts
Showing posts with label fha. Show all posts
Nov 15, 2009
FHA insured loans are a popular choice among first time home buyers
FHA insured loans are a popular choice among first time home buyers who are taking advantage of the low house prices and first time home buyer tax credit being offered. According to a recent FHA report; "In the second quarter of 2009, nearly 50 percent of all first-time buyers in the entire housing market used FHA-insured loans."
FHA offers an affordable way for buyers to obtain a home loan. When I practiced real estate up north, FHA financing was a fairly common source for mortgages. Some of the benefits to a Florida home buyer using an FHA insured loan include:
FHA offers an affordable way for buyers to obtain a home loan. When I practiced real estate up north, FHA financing was a fairly common source for mortgages. Some of the benefits to a Florida home buyer using an FHA insured loan include:
- Approximately 97% financing
- The loan is subject to appraisal
- The home must meet minimum property conditions
It is easy to apply for an FHA loan. Watson Mortgage handles FHA loans and offers the buyer free consultation to determine if FHA is the right program for you.
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