An FHA loan is a government backed insured loan for single-family and multi-family homes made by approved lenders. Anyone who is a U.S. citizen, permanent resident, or non-permanent resident with a qualifying work visa, who meets the lending guidelines, may qualify for an FHA-insured loan. We specialize in FHA loans in Pembroke Pines, Homestead, Coral Springs, Boynton Beach, as well as the whole state of Florida.
FHA loan advantages
The advantages of this loan is that they offer lower down payments and lower credit scores compared to other loans. According to HUD (Department of Housing and Urban Development) Borrowers can technically qualify for an FHA loan with credit scores of at least 580 and a down payment of just 3.5 percent.
FHA loan requirements:
- Steady employment history or worked for at least two years for the same employer.
- Income must be verified through pay stubs, federal tax returns and bank statements.
- Borrowers front-end debt ratio should not exceed 31 percent, and the back-end debt ratio should not exceed 43 percent of your gross monthly income.
- Property must be appraised by an FHA approved appraiser and meet HUD property guidelines.
A Mortgage Insurance Premium is required for all FHA loans, regardless of the down payment, which includes an initial premium called upfront mortgage insurance premium (UFMIP) and a monthly premium based on the annual average outstanding loan balance divided into 12 monthly payments. The UFMIP on a 15- and 30- year purchase and refinance transactions for case numbers assigned on or after April 9th, 2012 is 1.75% of the loan amount.
Apply for an FHA loan today!
If you are buying a home and your credit score is not as high as you need it to be to qualify for a conventional loan or you want a lower down payment. and FHA loan is the best route. This government backed loan gives you a chance to make all your hard work pay off, invest in yourself and become a home buyer.