What is a FHA Mortgage?
FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal. The FHA does not lend the money to build homes; instead, it guarantees that approved lenders are reimbursed for losses suffered if there is a foreclosure or short sale in which the property sells for less than the mortgage balance.
What can i buy with FHA?
FHA loans are for primary residences only and require a minimum 3.5% down payment.
How much can a borrow?
FHA loans have maximum loan amounts depending on the borrower’s county, and the maximum is based on the loan amount.
A list of other county and state loan limit can be found here
| Florida – FHA Mortgage Limits – 2022 | |||
| One-Family | Two-Family | Three-Family | Four-Family |
$460,000 | $588,850 | $711,800 | $884,600 |
An investment in knowledge pays the best interest
Mortgage Insurance Premium (MIP)
- This fee is paid on all FHA loans with terms greater than 15 years, regardless of the amount of down payment.
- Borrowers may finance the up-front MIP cost as part of the loan amount and pay the MIP premiums along with the monthly PITI payment.
- The MIP continues for the life of the loan.
Other inportant Information.
- The entire down payment can be a gift.
- The maximum FHA seller concession is 6% which cannot be used to pay the down payment.
- The maximum term for an FHA loan is 30 years.
- Borrowers must have a Social Security Number
- The late fee is 4% of the monthly P&I.
