Lake Mary Real Estate 101: Should you choose a FHA Loan?

If you have less than the 10% down payment required for Conventional Financing a FHA loan could be the right option for you.  The Federal Housing Authority (FHA) provides private mortgage insurance on loans made by FHA approved lenders.   For more information about the FHA, please click here to visit their website.

All information in this article is in reference to SunTrust Mortgage and each FHA approved lender has it’s own approval guidelines.

FHA Quick Facts

Current Seminole County Loan Limits:  $274,850

House Must Be Borrower’s Principal Residence

Down Payment Required:  3.5% of Purchase Price

Down Payment Gift Funds Allowed*

*Currently the home seller funded programs are no longer available, but100% Family gifts are allowed.

 

Benefits of FHA Financing

  • Qualifying rations are 31/43
  • Interest rates below many conventional loans
  • Automated Underwriting Systems may be used to process FHA loans
  • Low Down Payments and Flexible Sources
  • Seller can contribute up to 6% of the sales price towards borrower’s costs
  • No prepayment penalties
  • Up-Front Mortgage Insurance Premium cab be financed into mortgage
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    In the past 2 years 90% of the home purchases that I have been involved in with, both buyers and sellers have succesful been completed using FHA financing.  If you are considering buying a home in Seminole County and think that you might be a candidate for FHA financing talk to a REALTOR who understand the requirements not only for you the buyer, but also the home you would like to buy in Seminole County, the property must meet the program guidelines.  If you would like to talk to me about buying a home with FHA financing please email or call me @ 407-758-1020, I’m always available to help.

    Debbie Summers – Lake Mary REALTOR 

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