If you’re looking for a new home in Central Florida, you’ve probably heard of FHA loans. What is an FHA loan exactly and is it the best option for you? Let’s take a closer look at the newest updates on FHA loans and if it is the right loan for your situation.
What is an FHA Loan?
FHA are mortgage loans that are insured by the Federal Housing Administration. These loans are popular because they help home buyers purchase a home with a low down payment.
They also allow more flexible income and credit requirements than other loans and multiple sources for the down payment.
Who typically gets an FHA Loan?
For first time homebuyers, those with less than great credit and lower incomes, FHA loans are usually the best option for a home loan. Since they don’t need a high down payment, they are very popular with those wanting to purchase a home.
Benefits of an FHA Loan
There are a number of benefits of a FHA loan, including
A very low down payment. You can buy a home with an FHA loan with as little as 3.5% down.
Flexible income and credit requirements. Which is great for those who do may not qualify for conventional loans.
Lower Interest rates. Since FHA loans typically have lower interest rates, they can save you money.
The newest 2023 FHA updates
Recent FHA updates include an increased mortgage limit “ceiling” and “floor” for a one unit property. The new limits for the 2023 calendar year are $472,030 and $1,089,300, respectively. Take note, this is the average.
For many homebuyers, FHA loans are the best option for their situation. We encourage you to reach out to one of Palm State Mortgage loan officers to see if an FHA loan is right for you.
Palm State Mortgage makes shopping around for a lender easy, because we do all the hard work for you to find you the best interest rate and terms on the market.
Our extensive mortgage experience here in Florida allows us to secure the best possible mortgage terms. For over 35 years we have strived to make home buyers dreams come true with the best financing terms available!
