The FHA (Federal Housing Administration) is the largest insurer of home loans in the world, backing millions properties for over 80 years. FHA provides mortgage lenders with insurance on all loans funded in refinancing or purchasing a home. Mortgage companies are in a sense protected or insured should a buyer default on their mortgage payment. So what are the current Port Charlotte FHA Mortgage Limits? Let's take a closer look below at some of the latest FHA requirements and lending limits.
With an FHA loan, an applicant could qualify to purchase a home for as little as 3.5% of the property's purchase price! Homebuyers may finance their closing costs within their loan. Port Charlotte approved FHA lenders can provide loan program options that require minimal down payments whether it be FHA, USDA or VA Purchase Loans. Keep in mind, select locations around Punta Gorda are still eligible for the 100% USDA loan.
FHA lending loan limits and restrictions are partially dependent on community restrictions. These are the FHA loan basics:
- FHA is allowed to insure loans on amounts up to 115% of the county median house price within that Metropolitan Statistical Area (MSA), but cannot exceed 150% or be lower than 65% of the Government Sponsored Enterprise (GSE) conforming mortgage limit
- Anyone who meets the credit, employment, and income requirements is able to qualify
- You do not have to be a U.S. citizen, but proof of legal residency in the US is required.
- FHA Loans are for primary homes and can be useful to first time buyers trying to enter the market due the reduced down payment requirements.
- For a detailed look of FHA lending loan limits in Charlotte, Sarasota and surrounding counties please click here.
The most frequently asked FHA question always has to do with loan qualifying requirements? That question can only be answered by a trained loan advisor as each borrowers situation is different. However, generally speaking, FHA loan applicants will need the following:
- Acceptable credit score, over a 620
- Min down payment of 3.5% - down payment CAN be a gift from family, etc.
- Stable work history over the last 2 years.
- No previous home foreclosures, etc in the last 5 years.
Tihngs Port Charlotte Home Buyers Need to Know About FHA Loans:
- FHA offers low fixed interest rates, even lower than many conforming mortgage rates. Also adjustable rate ( ARM) options.
- FHA loans allow borrowers to qualify for the lower interest rate of a conventional loan, rather than using a higher, subprime mortgage rate, which can save you thousands on your interest charges.
- Buyers can finance repair costs and renovations within the mortgage with a 203K loan, and some Florida FHA programs allow buyers to make repairs after closing instead of having to save money and make the repairs one at a time as their budget allows.
- Only a 3.5% down payment is required (as opposed to 10% + with most conventional loans)
- FHA home mortgage loans require no cash reserves, or large savings.
- FHA loans are available to non occupying co-borrowers - only one needs to occupy on that property.
- Home seller(s) can pay buyers closing costs - up to 6%.
FHA home loans are not for every homebuyer because there are very specific requirements. This type of loan may not offer enough money to families needing a larger mortgage. In addition, the difference between FHA and conventional loans may mean the upfront Mortgage Insurance Premium (MIP) would cost more than it would with Private Mortgage Insurance (PMI).
2015 Is a Great Time to Purchase in Port Charlotte
Low interest rates and Port Charlotte home prices make this the perfect time to buy. Take advantage of the buyer's market and start moving towards homeownership. The paperwork process in an FHA loan can be extensive; you will need documentation such as bank records, pay stubs, etc. We understand that this process can get overwhelming, so we want to help you keep a clear head and stay on track when working through the FHA loan process.
So where should you start? How to qualify? Just call (904) 302-6060 7 days a week, or visit www.FhaMortgageSource.com
Serving all of Sarasota, Charlotte County - Palm Island, Placida, Port Charlotte, Punta Gorda, Rotonda and Solan