Homebuyers in Manatee County may want to consider getting a FHA (Federal Housing Authority) backed loan to finance your home. FHA mortgages are backed by the government, which makes them attractive to mortgage companies who originate them. Consider this home financing option if one or more of the following apply to you:
- You are a first time buyer in Manatee County have a limited cash saved for a down payment (currently you can put as little as 3.5% down)
- You want to keep your monthly payments low and have a secure fixed interest rate.
- You don’t want any early pay off penalty.
- Some of the lowest interest rates of any mortgage program today.
FHA Financing Benefits Manatee County
An FHA loan offers the following five benefits to borrowers:
- It's a breeze to get qualified - Pre Approval Requirements - Because these loans are insured by the government, the lender may be more willing to work with you on finding the loan type that works best for you
- Lower Rates- Again, rates may be more desirable when compared to other loans because the government insures the funds
- Safe Stability- The FHA has been in existence for over 80 years, it will continue to be here to protect you. If you encounter tough financial times after buying your home, the FHA can provide a host of options to help keep you in your home.
- FHA Streamline Refinance – Easy refinance options should interest rates ever go lower.
They are some requirement both on you and the property you’re considering that you’ll want to be aware of.
FHA Borrower Requirements for Manatee County applicants
To see of you qualify for an FHA loan the following guidelines apply:
- Any bankruptcy must be 3 years old and the applicant must have demonstrated good credit for 2 consecutive years after the bankruptcy was filed
- A foreclosure has to be at least 4 years old -4 consecutive years of good credit must follow. Min 620 credit score
- You need 2 years of stable income in the same line of work
- You must be able to put down 3.5% toward the purchase price of the home
- Your monthly payments must be in the neighborhood of 30% of your gross income. Total debt with housing should not exceed 48%.
FHA Home Requirements for Manatee County
In addition to borrower requirements, requirements exist for the home you’re considering buying. These include:
- Single family home
- 2 to 4 unit properties
- The property must be used as a primary place of residence – no second homes or investment homes. Ineligible properties include co-ops, boarding houses, commercial properties, mobile homes.
- If the home seller has acquired the home within the last 90 days, it’s ineligible for an FHA loan. The contract must be written 90 days after the current seller closed (title seasoning)
FHA offers the following a few different financing options as outlined below:
Fixed Rate Loans- Most FHA loans are fixed rate mortgages. With a fixed rate loan, your interest rate stays the same for the life of the loan. This means you know how much your monthly payment will be and can budget for it.
Adjustable Rate Loans- With an FHA adjustable rate mortgage (ARM), the initial rate and resulting payments are low. However, the rate may change over the life of the loan. The changes are capped at 1 to 2 percentage points per year and usually 5 or 6 percentage points from the beginning rate over the life of the loan. Because the initial rate and payments are low, you may be able to afford more house.
Purchase-Rehabilitation Loans- When you found a home you like that needs a lot of work you may want to consider an FHA purchase-203K rehab. This loan uses the projected amount (subject to limits) of the property after the work is completed. It includes the mortgage and the price of repairs. The advantage of this loan is that you have one mortgage but can complete the home repairs after you’ve bought the home.
Call FHA Mortgage Source at 904-302-6060 with questions. Also keep in mind that some eastern parts of Manatee county are still eligible for the 100% USDA loan. Serving all Fla & GA homebuyers including Manatee County: Anna Maria - Bradenton - Ellenton - Holmes Beach - Longboat Key - Myakka City - Palmetto - Parrish