What is an FHA Loan? Who qualifies?
In a nutshell – FHA mortgages are home loans which are insured by the Federal Government… Interest rates on FHA loans are similar to those of conventional loans…. and FHA financing is a good option for home-buyers who have somewhat limited savings or limited downpayment options. If you are a first-time home-buyer FHA is an option worth exploring.
Up until 2006, FHA funding requirements had strict cosmetic requirements … but that no longer applies. FHA requirements are pretty much in line with conventional appraisal requirements now.
Another misconception: FHA loans are limited to moderate income households. Incorrect! That is not the case. High income individuals can get FHA loans as well. Co-borrowers income to debt ratio (even those not residing in the home) can also be added. (This is ideal for parents who may want to assist their adult children financially in the purchase of a home.) The cap on the amount of an FHA loan is $271,050 … but the amount can actually go as high as $729,750 in certain counties.
Monetary gifts from qualified donors can be used as 100% of the down-payment and closing costs. FHA guidelines allow buyers to qualify who have a “less than stellar” credit history. Income is a factor though, because FHA guidelines stipulate that the buyer must be able to repay the loan.
Contact the Restivo Team 305-793-1365 if you have questions, or are thinking about to buying, selling, leasing or building property in Miami, or elsewhere internationally. We have a network of top real estate experts and can assist you globally.