FHA Loans

Federal Housing Administration government backed loans

The FHA was founded to make home ownership more accessible for all Americans. Prior to the FHA, large down payments up to 50% were required which left banks with less risk and made it impossible for many to buy homes. Today FHA backed loans require as little as 3.5% down even with less than perfect credit. They offset the risk using mortgage insurance so the rates are also low. The whole idea is to help people own their primary residence so FHA loans are for single family homes of 4 or fewer units where the owner resides.

 

All FHA loans have certain requirements including debt to income ratio in the low 40s. Most lenders require at least a 580 FICO score and 620 is the baseline goal to get a good rate. FHA loans can not be used for investment properties or houses you will not be living in such as rentals etc. The maximum loan amount in Jacksonville, Clay and St Johns counties for 2017 is $330,050 for a single family home up to $634,700 for a quadplex.


If you want to take advantage of the FHA loan program, Call or text 904-671-6232 or apply online and I will get you set up.