Good news for buying a home or Real Estate for Federal Housing Assistance Loans (FHA)! The loan limit increased in 2021 in most areas to min 356,287 depending on which county you live in. The high cost areas such as examples California and Hawaii is now 726,525 from 679,650. Just over 180 counties will remain the same in Florida. Also HECM FHA Loans will increase to 679,650.
Under these standards this means that a buyer using this loan could qualify for more home provided they meet lender requirements. As the housing market rises, this adjustment helped pass a new bill. However mortgage insurance premium (MIP) is still required. This is a result in rising home market prices. This type of FHA loan is a common and popular first time buyer type loan, resulting lower down payment comparison to a conventional loan. Requirements are minimal 580 FICO score with 3.5% down payment. Generally 500-579 FICO Score 10% down, 43% debt to income ratio, primary residence and proof of employment with consistent job history. Primary residence means that you occupy the home purchased. You do not have to be a US Citizen, however you must prove that you are legally in the United States. Aliens and nonresidents aliens application's are allowed.
This type of loan is insured by the Federal Housing Administration. Many borrowers that have filed bankruptcy and foreclosures may qualify for such a loan easier than a conventional loan. You can pay off early without being penalized. FHA offers an adjustable rate mortgage (ARM) which is much different than a 30 year fixed FHA Loan. This type of loan offers a lower monthly rate and adjust as the years advance. You must be wise and knowledgeable once using this type of loan. As for searching for Florida Real Estate, I am one of the finest Florida Realtor's you can find. Facebook Kevin Sells Florida and Kevin Selling Florida.