Florida Buyers are Returning to FHA Loans for Good Reason. FHA mortgages are becoming more popular for homebuyers because they are easier to qualify for and the down payment requirements are minimal. If you are not familiar with The Federal Housing Administration, FHA they have been around since 1934. The Department of Housing and Urban Development, HUD overseers the FHA program. In the 90s FHA loans lost their popularity when appreciation escalated past the FHA lending limits. Not only did home prices escalate beyond FHA lending limits but sellers rarely wanted to accept a buyer because of the stiff appraisal and inspection guidelines. Today FHA has loosened up the inspection guidelines to making sure the new home has no potential dangers : A common misconception about FHA loan is that FHA lends the money. FHA does not lend money the program only insures loans that are approved by qualified FHA lender. Approved lenders make the loans the FHA insurance protects the lender against possible loss.
Another reason why FHA loans are a good choice for many is because FHA will finance homeowners with past credit problems. With FHA credit score is not a factor. And, if you are in a bankruptcy you may qualify to refinance with FHA loan after 12 months of steady payment history. If you have had a foreclosure in the best you may qualify for a new home loan after 2 years
MIP and UFMIP Charges involved in an FHA mortgage. The Up front , Mortgage Insurance Premium is 1.5% of the loan amount and is funded into the loan Also a Mortgage insurance premium of .5% is added but financed over a year is added to the monthly payment..
The biggest benefit to a buyer is that a buyer can purchase a property with as little as a 3%. That 3% can come from a friend, family member or non profit. So in many cases if a new homeowner that can prove a worthy borrower they can purchase a home with no money down.
For More Information Visit http://www.fhamortgageprograms.com/
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