Good news for buying a home or Real Estate for Federal Housing Assistance Loans (FHA)! The loan limit will increase 2019 in most areas to 314,287 from 294,515. The high cost areas such as examples California and Hawaii is 726,525 from 679,650. Just over 180 counties will remain the same. 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 loan (FHA) is a common and popular first time buyer type loan, resulting lower down payment than conventional. Requirements are min 580 FICO score with 3.5% down payment. 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 will occupy the home. You do not have to be a United States citizen, however you must prove that you are legally in the United States. Aliens and nonresident aliens' applications 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 loan easier than a conventional loan. You can pay off your loan early without being penalized.
FHA offers an adjustable rate mortgage (ARM) which is much different that a fixed 30 year 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. Any questions you may have feel free to contact me today at 850 496-6412. Always here to help all families any time of day.