Often times when home buyers hear the term "FHA" they automatically think the FHA program is designed for first time homebuyers or have some special qualification rules. And while first time home buyers in Ocala make for a sizable share of FHA loans, they're not exclusively for first timers.
FHA loans are much easier in which to qualify when compared to conventional loans underwritten to conventional standards. FHA loans also require as little as 3.5% down while still offering competitive interest rates. If fact the interest rates with FHA loans are some of the lowest available of any mortgage program available in Ocala. And if cash-on-hand is an issue, FHA has the most lenient rules when it comes to getting help from relatives to buy a home.
FHA also establishes its own customized maximum loan limits based upon a particular county instead of imposing a "one size fits all" approach. For example, Ocala is located in Marion County. The FHA loan limit for Marion County is $271,050 for a single family home whereas nearby Lake County has a maximum loan limit of $274,850.
This customization of loan amounts attempts to match local housing prices with the appropriate loan product. That's why higher-priced Florida counties in the south (Dade, Monroe, etc) will have higher maximum loan amounts than lesser-priced Florida counties. FHA financing also has a feature that allows the home seller to pay the buyers closing costs up to 6%. The buyer only need to cover the 3.5% down payment which again can be a gift.
Some other benefits of the FHA loan at Cosat2Coast Lending include:
- FHA also has secure 30 or 15 year fixed terms with low interest rates.
- FHA permits financing up to 96.5% financing, so it does require a small 3.5% down payment. However, the buyers required down payment can come in the form of a gift from a family member. Buyers can also use City or County sponsored down payment assistance program (SHIP) to help with the 3.5%.
- FHA also permits the home seller to pay up to 6% of the home buyers closing costs.
- FHA permits their 1.75% up front fee to also be added to (rolled into) the loan amount.
- 600 credit score needed to apply from most lender, banks and brokers.
If you plan on purchasing a home in future, make certain you look at all available options including FHA. When it comes to easier qualifying, low down payment and saving on closing costs the FHA loan program is a perfect fit for home buyers in Ocala.
Coast2Coast Lending serves home buyers throughout Fla, GA, TN, VA - please call us at 904-810-2293 7 days a week. Also be sure to visit us at www.Coast2Coastlending.com for more information.