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Here are 5 good reasons:

Easier to qualify for the loan You do not need perfect credit Very low down payment Costs are lower You keep your home

Ok, now we can look at these in greater detail. Then you can see why asking for an FHA loan may be your best option.

Easier to Qualify For the Loan

FHA is not the actual lender. They are a government run program that insures the lender that they will get their money if you do not pay. So they have less risk than a conventional loan. A conventional loan is normally insured up to 90% of the loan amount (by a private mortgage insurance source) where as FHA is insured up to about 97%.

So it takes less for you to qualify since the lender is guaranteed by the United States Department of Housing and Urban Development (or HUD) that there is no real risk to the lender so they will be more likely to take a chance on borrowers with less than perfect credit. This brings me to the next point.

You Do Not Need Perfect Credit

At one time, a few years ago you could get and FHA loan with no credit scores at all. This was great for borrowers who had not established credit in the conventional methods. However you could still use alternative credit like rent, cell phones, utility bills etc.

Now FHA wants you to have a credit score of at least 580-620. If you do not have a score it will be much more difficult to get a loan if at all.

So be sure you are building credit now, use a credit card but pay it off each month. If you have student loans, this will work also, just be sure to keep your payments on time. The same goes for medical bills.

You cannot have more than 2 accounts that are over 30 days late in the past 2 years.

Very Low Down Payment

So again, what ask for an FHA loan? How about the low down payment of just 3.5%? To top that off it can be a gift from your parents or a charity. Only FHA loans allow this as far as I know.

There are many ways to work at raising this money. You either save it yourself, get a gift from the parents or have a charity give it to you. I know what you’re thinking, how do I get a charity to give it to me. Well, that’s for another article.

Costs are Lower

FHA loans offer great interest rates. Compare them to the conventional loan to see for yourself that this is true. Compare the FHA interest rate with several lenders and you may find some that are lower.

You may find it just a little above the conventional loan. For example if the conventional loan is 6% the FHA loan may be around 6.5%.

What you need to keep in mind is that FHA loan rates have not varied much over the years. I bought my first house in 1978 and my interest rate was 7.75%

You Keep Your Home

HUD does not want your house back. They want you to stay in it until you pay it off or sell it. That’s why they insure the loan to project the lender ad you. Since 1934 they have been doing this and it’s a good bet they will continue to do so.

Conclusion

While FHA loans may not be for everybody, they do order many benefits. When you look at the simple qualifications, low credit requirements, easy down payment, great interest rates and the insurance to the lender it makes for a great reason to ask for an FHA loan.

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Minimal Down Payment and Closing Costs

·    Down payment less than 3.5% of Sales Price with 100% Financing options available

·    No reserves or required.

·    FHA regulated closing costs.

·    Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

·    No minimum Credit score or needed credit score requirement.

·    FHA will allow a home purchase 2 years after a Bankruptcy.

·    FHA will allow a home purchase  3 years after a Foreclosure. 

Easier Debt Ratio & Job Requirement Guidelines such as:

·    Higher Debt Ratio’s than other home loan programs.

·    Less than two years on the job is allowed.

·    Self-Employed individuals o.k.

FHA loans for Florida first time home buyers have key advantages including:

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Down payment Requirements – FHA mortgages can work with as little as 3.5% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Down payment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Visit www.FHAmortgageprograms.com speak with a friendly Florida FHA loan specialist now!

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