FHA Loan Program
What is an FHA Loan?
The FHA Loan Program, referred to as an “FHA insured loan” is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA-approved lender. An FHA mortgage is a government-backed home loan with more flexible lending requirements than those for conventional loans. Because of this, interest rates may be somewhat higher. With an FHA loan, the borrower is required to pay an upfront mortgage insurance premium (UFMIP) equal to 1.75 percent of the base loan amount at closing. This is normally financed into the total loan amount by the lender and paid to FHA on the borrower’s behalf. There is also a monthly mortgage insurance premium(MIP) which varies based on the amortization term and loan-to-value ratio.
An FHA loan is available as a fixed or adjustable rate mortgage.
The FHA Loan limit for Monroe County, FL is $529,000.
FHA loan limit guidelines require a minimum down-payment of 3.5 percent for credit scores 580 and higher.
FHA loan limit guidelines require a minimum down-payment of 10 percent for credit scores between 500-579.
FHA loans require that the home being purchased must meet certain conditions and be appraised by an FHA-approved appraiser. New FHA loans are available only for homes that will be used as the buyer’s primary residence.