You should use an FHA Loan in Orlando, central Florida, or anywhere else in Florida for that matter, if possible.
Even though HUD just changed its MIP factors; the upfront MIP and the monthly MIP, an using an FHA Loan in Orlando to buy your home is the smartest way to go, if you are not a Veteran or if you do not have 20 percent to put down.
An FHA Loan in Orlando is one of the best kept secrets in real estate. The maximum mortgage amount for an FHA Loan in Orlando is currently $353,750. An FHA loan in Orlando requires a down payment of 3.5% or $12,830. This equates to a mathematical sales price of $366,580! First and foremost, this would save your customer almost $5,500 in down payment if they were going 5% down conventional and $22,828 if they were putting 10% down conventional. Their monthly MI payment would only be 21 dollars more per month for every 100,000 dollars of loan amount.
$21 per month to save $6,500 at closing in down payment! My ‘baby math' says that it would take 25 and 10 months to make this up.
A sales price of $373,368 would require 5% down, still get an FHA loan in Orlando and have a much smaller monthly MI payment factor than the 3.5% down!
This number is well above the median sales price, will affect a large number and percentage of potential buyers, (many of whom would love to use an FHA Loan in Orlando), and will truly help your customers save money at closing.
And, at least for the moment (fingers crossed) the middle credit score requirement for lenders (not FHA but the actual lenders) is still a 620. This is what we call a "Lender Template Overlay". It essentially means that the lenders are saying, "We don't care what HUD or FHA says, this is what we are doing". More on Lender Template Overlays to come.
There are a lot of false perceptions about using an FHA Loan in Orlando for your real estate transaction, and I am going to begin dispelling them right now:
First, using an FHA Loan in Orlando does not require the same pristine condition inside and outside the house as was required 10 years ago so. For example, back a few years ago, there had to be a stove in the kitchen. FHA thought that if someone moved into the home, they had to be able to cook. I guess since they never required that a refrigerator be in place, cold food wasn't as important as hot food?
Now, appliances aren't even required at all. FHA assumes they will be put in if someone will be living there. However, if the appliances are there, they must work! How is that for a ‘Catch 22'?
There are many other great reasons to use an FHA Loan in Orlando. I will be blogging about them all in my new FHA Loan in Orlando series. And, I am an FHA Financing Expert. I am your knowledge source for all of your FHA Loan in Orlando questions so catch all of the articles in this series.
Andy Brown, Your FHA, VA, and USDA/RD Financing Expert!
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