FHA Federal Housing Administration Loans
Flrodia Home Sales in Palm Beach County, Martin County, St Lucie County

FHA Federal Housing Administration Loan - The FHA is an agency attached to the U.S. Department of Housing and Urban Development.


What exactly is an FHA Loan?

FHA Loans are mortgages insured by the Federal Housing Administration where the borrower pays for mortgage insurance so that the lender is protected from monetary loss if the borrower defaults on the loan.


As a result, lenders have the ability to offer these loans at attractive interest rates and allows them to be more flexible with some of their qualification requirements.


Does my credit score matter?

Absolutely. The minimum credit score for FHA Loans will depend directly on the type of loan a borrower needs. Typically anyone with a credit score under 500 will be ineligible for FHA Loans unless an exception is made under specific conditions for a borrower that might have Non-traditional Credit History or Insufficient Credit.


If a borrower has a score between 500 and 579, a cash down payment on the property in questions will need to be at least 10% of the contract value.


To qualify for a rate as low as 3.5%, the borrower will need a minimum credit score of 580 or higher. Then FHA borrowers can use any of their own savings to make the cash down payment on the property. If short on the amount, the only other allowed sources for cash on the down payment are “Gifts” from family members or a grant from the local state government down-payment assistance program.


Any Advantages of an FHA Loan?

Yes. The FHA allows home sellers, builders and lenders to pay for some of the borrower’s closing costs (i.e. appraisal, credit report, or title expenses).


This typically comes with a higher interest rate attached to the loan if they agree to pay the closing costs. It is good practice for borrowers to compare loan estimates from a few lenders to find out the best option.


Since the FHA is not considered a mortgage lender, but actually an insurer of the mortgage loan, a borrower should shop multiple Approved Lenders or Mortgage Brokers to find the best cost, service and underwriting standards for their situation.


Borrowers should also be aware that 2 mortgage insurance premiums are required on all FHA Loans.


The Upfront Premium is 1.75% of the amount of the loan and is paid when a borrower receives the loan. It can be financed as part of the loan amount as well.


The Annual Premium will vary depending on the duration of the loan, amount borrowed and the initial loan-to-value ratio. This is paid on a monthly basis.


What If I Want To Make Repairs?

Another major advantage to an FHA Loan is a special product offered called a 203(k) for borrows who will need extra cash to make repairs to the home. This product is based on the projected value of the home after repairs are made and not the initial appraisal value.
Flrodia Home Sales in Palm Beach County, Martin County, St Lucie County
Why should you work with a REALTOR®?

It's a common question that we hear a lot, but it can be simply summed up with 7 simple reasons that don't even include the money gains that you stand to earn from your real estate sales. REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. If you're considering purchasing or selling a home in Palm Beach County, Martin County, St Lucie County, or anywhere else in Florida, then you REALLY need a realtor for many other reasons not even mentioned below.  There's a LOT more to it than most people realize, and the cost in time, money & energy to you for not having a REALTORS® can be staggering!

This is the REALTOR® difference for home buyers:
  1. An expert guide. Selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.

  2. Objective information and opinions. REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORS® can use that data to help you determine if the property has what you need.

  3. Property marketing power. Property doesn’t sell due to advertising alone. A large share of real estate sales comes as the result of a practitioner’s contacts with previous clients, friends, and family. When a property is marketed by a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally pre-screen and accompany qualified prospects through your property.

  4. Negotiation knowledge. There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows you the flexibility you need to take that next step.

  5. Up-to-date experience. Most people sell only a few homes in a lifetime, usually with quite a few years in between each sale. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.

  6. Your rock during emotional moments. A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

  7. Ethical treatment. Every REALTOR® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment in all transaction-related matters.

When looking for homes for sale in Palm Beach County, Martin County and St. Lucie County, Florida Home Sales can help you find your ultimate dream home.

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