FHA Home Loan Florida. FHA Mortgage Florida
Not two generations ago, it was difficult for home buyers in Florida to get a mortgage from their local financial institution without a 20% Downpayment. Few people could manage the savings required and many otherwise qualified Floridians didn't get approved for the funds to buy a home in Florida because they did not have the minimum Downpayment to qualify for a Florida Mortgage.
Although recent problems in the subprime market have made lenders more careful about how they extend credit, it's still very possible to buy a home in Florida with little or no money down. To learn more about our Florida home buyer programs, just give us a call at 1-800-570-0448 or use our quick application to inquire today!
No Money Down Programs for Florida Home Buyers
For sure, it is much easier today to be a Florida home buyer than it was a generation ago. Even if you don't have substantial savings or perfect credit, 1st Continental Mortgage works with many lenders still willing to make loans to borrowers with limited cash for Downpayment
In fact, today in Florida 7 out of 10 first time home buyers make a Downpayment of 10% or less. A good many Floridians buy their homes with no money down at all.
Because most people who sell an existing home have some equity which can be applied to making the Downpayment on the new home, no down payment financing is most attractive to Florida first time home buyers. However, these loans are an option for all home buyers whether they have equity from a prior sale or not.
Don't be persuaded that your lack of a Downpayment means you can't become a Florida homeowner. Call 1-800-570-0448 or use our quick application to find out how simple it is to take advantage of 1st Continental Mortgage's excellent no money down mortgage programs.
With 10 plus years of helping home buyers and first time home buyers become homeowners, the skilled and experienced mortgage lenders of 1st Continental Mortgage can help you own a Florida home using these excellent no money down Mortgage programs:
- 106% Financing For Florida Home buyers - Closing costs in Florida vary but typically run from 4-6 percent of the value of the transaction. Using a 106% Florida mortgage is an excellent way to create a truly no money down home mortgage. Call 1-800-570-0448 to get pre-approved for this no money down program today! Quick Application!
- 105% Financing For Florida Home buyers - Right now sellers of homes are a little more flexible in dealing with prospective Florida home buyers because of the slower Florida housing market. That means 105% financing is often enough to produce a true no money down real estate transaction for the Florida real estate buyer, especially if your Realtor® can negotiate some help from the selling side. To learn more about our 105% mortgage programs, call 1-800-570-0448 or apply securely online for a no money down Florida mortgage. Quick Application!
- 103% Financing for Florida Home buyers - Having an experienced Mortgage Lender working with you and your Realtor® in structuring your offer to purchase is one way that many Florida home buyers get to the closing table with 103% financing. Our loan officers are standing by to answer any questions you might have about our mortgage programs for home buyers at 1-800-570-0448. Call now for a quote on 103% financing or any our other Florida lending no money down mortgage programs! We can get you a loan whether you're financing a modular home in Broward County or a single family block home in Orange County. We will make a fixed rate no money down home loan easy! Quick Application!
- 100% Financing For Florida Home Buyers - Interest rates are at historic lows and an oversupply of well built homes with high days on market! Florida home buyers should not let the lack of funds for a Downpayment make them miss what looks to be one of the best buying opportunities in Florida residential real estate in many years. A 1st Continental Mortgage representative will be happy to discuss how you can buy your Florida home with 100% finance lending. Call 1-800-570-0448, or inquire using our contact form for a no obligation quote on 100% financing from our best Florida lenders. Quick Application!
- 80/20 Financing For Florida Home buyers - Although private mortgage insurance is now deductible in many cases, many of our Florida mortgage clients want to avoid PMI but still get 100% financing. We have structured many combo loans with an 80% first mortgage and a 20% Second Mortgage or home equity line of credit to avoid PMI and still achieve a purchase money mortgage with no Downpayment requirements. Call 1-800-570-0448 or use our contact form for a quote on an 80/20 no money down combo mortgage to buy your Florida dream home. Quick Application!
- 97% Financing For Florida Home buyers - A few years ago a seller's agent faced multiple offers and could pit Florida home buyers against each other in a bidding war before accepting the highest and best offer. Now home buyers can drive through subdivisions in most Florida metros and find plenty of for sale signs. Motivated seller's agents are receptive and often willing to kick in 3 to 9% toward buyer's closing costs and Downpayment without a corresponding increase in the offered price. In this way, even 97% financing can become the way to buy a Florida home with very little money out of pocket. Call 1st Continental Mortgage right now at 1-800-570-0448 for full details on our 97% Florida mortgage loans. Quick Application!
Many First Time Home Buyers Are Eligible For No Money Down Mortgages
You may be pleasantly surprised how much money the same amount you are spending on rent every month can buy if you apply it toward a low fixed rate Florida mortgage. Why not take a step toward building equity for yourself and your family? Call 1st Continental Mortgage today at 1-800-570-0448 or use our secure online Florida mortgage quick application to get a no money down mortgage for a first time home buyer in Hillsborough County or any of the other Florida counties we serve.
Quick and Easy No Money Down Programs for Florida First Time Home Buyers
Some Florida first time home buyers hesitate because they think that the no money down loan process is too complicated or time consuming.
Not so.
1st Continental Mortgage pros have been making getting loan approvals for Florida first time home buyers easy, stress-free, and straightforward for over ten years now. We can help you get the keys to a Florida home that you own. Call 1-800-570-0448 and ask about our special no money down first time home buyer mortgage programs.
Our no money down programs for Florida home buyers include all of the following:
- Low fixed rate Florida mortgages with terms of 40,30,20,15, and 10 years;
- First time home buyer programs for Florida Jumbo and Super Jumbo Mortgages for the purchase of luxury homes;
- No money down mortgage first time home buyer programs that allow for contributions from the seller and use of gift programs to pay closing costs and prepaids;
- Florida no money down programs with Interest Only periods of 1, 3, 5, and ten years;
- Both conventional and FHA home loan programs designed specifically for first time home buyers with less than perfect credit who want a low cost alternative to a sub prime mortgage;
- Excellent programs for first time buyers seeking to purchase mobiles, modular or trailer homes with land.
Don't miss one of the best times to buy a home in Florida because you don't have a Downpayment The call and consultation are free and without obligation. Call First Continental Mortgage at 1-800-570-0448 to learn more about buying your first Florida home with no money down.
About FHA , the Federal Housing Administration
The Federal Housing Administration (FHA) is a United States government agency created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to stabilize the mortgage market.
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During the Great Depression, the banking system failed, causing a drastic decrease in home loans and ownership. At this time, most home mortgages were short-term (three to five years), no amortization, balloon instruments at loan-to-value (LTV) ratios below fifty to sixty percent.[1] The banking crisis of the 1930's forced all lenders to retrieve due mortgages. Refinancing was not available, and many borrowers, now unemployed, were unable to make mortgage payments. Consequently, many homes were foreclosed, causing the housing market to plummet. Banks collected the loan collateral (foreclosed homes) but the low property values resulted in a relative lack of assets. Because there was little faith in the backing of the U.S. government, few loans were issued and few new homes were purchased.
In 1934, the federal banking system was restructured. The National Housing Act of 1934 was passed and the Federal Housing Administration was created. Its intent was to regulate the rate of interest and the terms of mortgages that it insured. These new lending practices increased the number of people who could afford a down payment on a house and monthly debt service payments on a mortgage, thereby also increasing the size of the market for single-family homes. (Garvin 2002)
The FHA calculated appraisal value based on eight criteria and directed its agents to lend more for higher appraised projects, up to a maximum cap. The two most important were "Relative Economic Stability," which constituted 40% of appraisal value, and "Protection from adverse influences," which made up another 20%.
Data on the geography of actual FHA loans was mostly kept secret, but when data has been released, scholars have found that FHA's generous programs were targeted disproportionately and almost exclusively to white Americans building homes in suburbs. Between 1935 and 1939, 220 out of 241 loans in St. Louis (91%) were located in the suburbs. From 1934 to 1960, the county of St. Louis received five times more FHA loans than the city of St. Louis, despite greater economic need in the city. Similarly, the average resident of Bronx County New York received just $10 in home mortgage loans from the FHA during its first 25 years, while the average resident in the wealthy Nassau County received $601 (Jackson 1985, Chapter 11).
Overall, the FHA has been accused of an anti-urban bias, and its practices precipitated the decline of many important American cities, by subsidizing the departure of white middle class Americans and refusing to give nearly as many loans for rental units, which would have been necessary to house low income workers. In 1968, Senator Paul Douglas of Illinois summed up the federal role in home finance: "The poor and those on the fringes of poverty have been almost completely excluded" (Jackson 1985, Chapter 11).
The FHA Today
In 1965, the Federal Housing Administration became part of the Department of Housing and Urban Development (HUD). Since 1934, the FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages. Currently, the FHA has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio.[1] The Federal Housing Administration is the only government agency that is completely self-funded. It operates solely from its own income and comes at no cost to taxpayers. This department spurs economic growth in the form of home and community development.
During budget planning for 2008 HUD had been projecting $143,000,000 budget shortfall stemming from the FHA program. This is the first time in three decades HUD had made a request to Congress for a taxpayer subsidy. Even though FHA is statutorily required to be budget neutral, the GAO is projecting taxpayer funded subsidies of half a billion dollars over the next three years, if no changes are made to the FHA program.
Currently new budget numbers are projecting "windfall revenues" for FHA due to the collapse of the sub-prime market and a flood of new loans being originated with FHA. However, these new challenges that FHA is undertaking are well worth the efforts. FHA's operations with its new programs, recently increased lending limits and streamlined processes hold the key to the stabilization and recovery from the current mortgage meltdown and the overall housing crisis.
FHA Mortgage Insurance
FHA loans are insured through a combination of a small upfront mortgage insurance premium (UFMIP), as well as a small monthly mortgage insurance premium. The UFMIP is often financed into the loan. Unlike other forms of conventional financed mortgage insurance, the UFMIP on an FHA loan is prorated over a five year period, meaning should the homeowner refinance or sell during the first five years of his loan, he is entitled to a partial refund of the UFMIP paid at loan inception. If the LTV is 85% or greater (in other words, if the borrower has less than 15% equity in his or her home), then the monthly mortgage insurance premium paid is less than a borrower with a conventional mortgage and excellent credit would pay. In instances where the home owner has a poor to moderate credit history, his monthly mortgage insurance premium will be substantially less expensive with an FHA loan than with a conventional loan regardless of LTV - sometimes as little as one-ninth as much per month depending on the borrower's exact credit score, LTV, loan size, and approval status. The monthly mortgage insurance premium on an FHA loan has the ability to save a credit-challenged homeowner thousands of dollars per year depending on the size of his home loan, his credit score, and his LTV.
A borrower with an FHA loan always pays the same mortgage insurance rate regardless of her credit score. This is especially of benefit to borrowers who have less than 22% equity in their homes and credit scores under 620. Conventional mortgage insurance premium rates factor in credit scores, whereas FHA mortgage insurance premiums do not. When a borrower has a credit score under 620, conventional mortgage premiums spike dramatically. If a borrower has a credit score under 575, he may find it impossible to purchase a home for less than 20% down with a conventional loan, as the majority of mortgage insurance companies no longer write mortgage insurance policies on borrowers with credit scores under 575 due to a sharply increased risk. When they do write mortgage insurance policies for borrowers with lower credit scores, the annual premiums are sometimes as high as 4% to 5% of the loan amount. Based on this, if a consumer is considering purchasing a new home or refinancing her existing home, she would often be well-advised to look into the FHA loan program.
When a homeowner purchases a home utilizing an FHA loan, he will pay monthly mortgage insurance for a period of five years or until the loan is paid down to 78% of the appraised value - whichever comes first.
Mortgage insurance is available for housing loan lenders, protecting against homeowner mortgage default. For a small fee, lenders can obtain insurance for a value of ninety seven percent of the appraised value of the home or building. In the event of a mortgage default, this value is transferred to the FHA and the lenders receive a large percentage of their investment. The other three percent is received from the original down payment for the home.
A borrowers downpayment may come from a number of sources. The 3% requirement can be satisfied with the borrower using their own cash or receiving a gift from a family member, their employer, labor union, non-profit or government entity. Since 1998, non-profits have been providing downpayment gifts to borrowers, that purchase homes where the seller has agreed to reimburse the non-profit and pay an additional processing fee. In May 2006, the IRS determined that this is not "charitable activity" and has moved to revoke the non-profit status of groups providing downpayment assistance in this manner.
This has led to a new downpayment program conducted by a tribal government, The Grant America Program. This program is exempt from IRS regulations and essentially works similarly to the non-profit programs.[citation needed]
FHA Mortgage Loans
The Federal Housing Administration offers various types of housing loans. These include:
- Adjustable Rate Mortgages
- Fixed Rate Mortgage loans
- Energy Efficient Mortgages
- Graduated Payment Mortgages
- Mortgages for Condominium Units
- Growing Equity Mortgages
In order to qualify for an FHA housing loan, applicants must meet certain criteria, including employment, credit ratings and income levels. The specific requirements are:
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- Steady employment history, at least two years with the same employer.
- Consistent or increasing income over the past two years
- Credit report should be in good standing with less than two thirty day late payments in the past two years
- Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
- Any foreclosure must be at least three years old
- Mortgage payment qualified for must be approximately thirty percent of your total monthly gross income
The creation of the Federal Housing Authority successfully increased the size of the housing market. By convincing banks to lend again, as well as changing and standardizing mortgage instruments and procedures, home ownership has increased from 40% in the 1930s to nearly 70% today[when?]. By 1938, only four years after the beginning of the Federal Housing Association, a house could be purchased for a down payment of only ten percent of the purchase price. The remaining ninety percent was financed by a twenty-five year, self amortizing, FHA-insured mortgage loan. After World War II, the FHA helped finance homes for returning veterans and families of soldiers. It has helped with purchases of both single family and multi-family homes. In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower income Americans. When the soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA's emergency financing kept cash-strapped properties afloat. In the 1980s, when the economy didn't support an increase in homeowners, the FHA helped to steady falling prices, making it possible for potential homeowners to finance when private mortgage insurers pulled out of oil producing states.[2]
The greatest effects of the Federal Housing Administration can be seen within minority populations and in cities. Nearly half of FHA's metropolitan area business is located in central cities,[3] a percentage that is much higher than that of conventional loans. The FHA also lends to a higher percentage of African Americans and Hispanic Americans, as well as younger, credit constrained borrowers. Because some feel that these groups include riskier borrowers, it is believed that this is part of the reason for FHA's contribution to the homeownership increase.
As the capital markets in the United States matured, FHA had less and less of an impact on the US Housing market for several decades. In 2006, FHA made up less than 3% of all the loans originated in the US. This had some members of Congress wondering why the Government is still in the mortgage insurance business. A vocal minority of congressional leaders has even been calling for the end of FHA. But this ideal has almost completely lost sense and is barely even mentioned now as FHA has once again began to play a major and increasingly larger roll in the housing market over the past 2 years by helping fight the effects of the recent deterioration in the credit markets, the mortgage melt-down, and the overall economic recession. Now, most members of Congress support and have been helping reform FHA in order to make it more competitive in the for-profit industry and to make it a greater positive force in the housing market which is crucial to the overall economy. FHA has significantly increased its mortgage relief efforts by helping at-risk borrowers avoid foreclosure with its refinance programs such as: FHA secure and hope for homeowners(H4H). Specifically designed for this purpose, the FHA secure and Hope for Homeowners programs have already facilitated foreclosure prevention for hundreds of thousands of distressed homeowners like: under-water borrowers, people affected by risky adjustable-rate mortgages and others experiencing temporary economic hardship.
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