If you have a home to sell or are looking to buy, an FHA loan could be the deal maker.

Now that the Jacksonville (Florida) real estate market is ramping back up, buyers are searching for the best value in a home and the best value in a mortgage.  But with all the chatter in the media about tightened credit and Freddie and Fannie problems, where's a buyer to turn?

The best deal for smart home buyers may be the once favored mortgage of first-time buyers, the FHA mortgage, but now even "move-up" buyers need to seriously consider today's FHA loan program.

Some may have the perception that FHA loans are for buyers who are less than qualified to purchase a home under other financing programs.  With the new methods of determining how conventional interest rates and down payments are figured, every buyer should take a second look at the benefits of using an FHA mortgage to secure their new home.

Highlights of an FHA Mortgage*

• Maximum loan amounts vary by region.  In Jacksonville, Florida, the loan limit is $387,500.  That buys a very nice home in our market, one you'd be proud to call home.
• Sellers can pay more of the closing costs, including pre-paids.  Up to 6% of the sales price. FHA is the perfect vehicle for sellers electing to offer an incentive to buyers in order to sell their home.
• Buyers can get in for as little as 3%
• Has the most liberal "A-priced" underwriting
• Qualifying ratios are more generous than Conventional loan programs
• Gift money from family members can be used for down payment and closing costs
• Family members can be non-occupying co-borrowers
• Non-resident aliens qualify
• FHA cannot be declined for "non-credit" status
• FHA loans are assumable subject to credit approval of the assuming buyer. (How's that for an exit strategy in the years to come should home mortgage rates increase above today's rates . . . anyone remember the 1980s and 16% mortgage rates?)
• No prepayment penalties for early payoff

Buyers should note that they can benefit from an FHA interest rate reduction of 1/2% less if they borrow less than the full loan limit.  There is a pre-determined loan amount for each area that will give you the 1/2% reduction in rate.  Ask your mortgage professional for the loan limits in your area.  In Jacksonville, mortgages that are $362,700 or less will benefit from a 1/2% rate reduction.

Home buyers and sellers need to be aware that an FHA loan can make all the difference whether or not that SOLD sign goes up out front and ultimately whether or not the buyer takes title to the property.

Please note: FHA is not a credit score based loan, so if your lender is arbitrarily requiring a credit score, consult another lender.

*Please consult an experienced and reputable mortgage professional for complete details of any loan program before making a financial decision.