FHA loans are an attractive option, especially for first-time homeowners because they are insured by the Federal Housing Administration (FHA). Basically, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. Typically borrowers can be approved with as little as 3.5% down and credit scores as low as the mid 500s. Streamline Financial Group is a leading provider of FHA loans in Boca Raton, Delray Beach, Boynton Beach, Deerfield Beach as well as the entire state of Florida. For more information on how to qualify, please don’t hesitate to call us anytime at (561)364-5626.
Benefits of an FHA Loan
A Federally insured FHA loan allows buyers with credit or income challenges to buy (or refinance) a home with a very low down payment and interest rate. It also allows borrowers to receive gifted funds, increased seller contributions as well as a host of other benefits which surround the topics of income, credit, down payment and closing costs.
How do I qualify for an FHA Loan?
The beauty of an FHA mortgage is that almost anyone can qualify. If you have a stable and verifiable source of income, little or no credit and at least a small down payment saved up, we can help you qualify. Usually a minimum credit score of 580 is required but we have seen approvals with credit scores even lower! We can let you know if you qualify with a quick 10 minute phone call.
Mortgage Insurance Premiums (MIP, PMI)
So, what’s PMI, MIP and MI and why do I need them? Well, however you abbreviate it, you’re referring to private mortgage insurance. This type of insurance is not the same as homeowner’s insurance. It’s required for anyone buying or refinancing their home when there’s less than 20% down payment (or equity) utilized. It protects your lender in case you default on your loan. It’s required on all FHA loans since the Federal Housing Administration is essentially taking a risk on you with an FHA loan. They’re allowing you to qualify with some income or credit challenges and doing so with a very small down payment. All of these represent risks to the lender and so this is why this additional type of insurance is required. The good news is that it’s not expensive at all and frankly, without it there would be no FHA loan program for many people to qualify on, so as far as we’re concerned, it’s Hooray for FHA!
FHA Loan Limits for 2019
The FHA loan limits usually change from year to year and from county to county. In Florida, the range is currently between $314,827 and $529,000 again, depending on the county where the home is located. In the tri county area (Miami-Dade, Broward and Palm Beach Counties) the limit is currently $356,500.
Apply Now for an FHA Loan!
What are you waiting for? We’re known to the be the friendliest and most helpful loan officers in Florida. We love to take our time to inform and educate our clients on the mortgage process. We don’t use fancy lingo and strive to make the process as simple and understandable as possible. We’re 5 star rated on both Zillow and Google. If you’d like to chat about your situation, call us now at (561)364-LOAN (5626). We guarantee to answer the phone by the 3rd ring or lunch is on us!