An FHA loan is insured by the United States government through the Federal Housing Administration. FHA loans have been around since 1934 so they are a tried and true product.

Why use an FHA loan?

It is easier to qualify because the FHA insures the mortgage. If you have less than perfect credit, you should consider an FHA loan.
FHA loans have low down payment requirements. You only have to provide a 3% down payment and that money can come from a family member, employer, or charitable organization. Other loans don’t allow this.
FHA loans have competitive interest rates.
The maximum loan amount for an FHA loan for a one-family dwelling is $387,500. This maximum puts many houses in Duval County within the right range for an FHA loan.

There are 2 ways the FHA determines your debt to income ratios. The first is to take your entire mortgage payment (principal and interest, escrow, mortgage insurance, homeowner’s association fees) and divide that by your gross monthly income. That percentage should be no higher than 29%. Or you can take all your revolving debt (entire mortgage payment, car loans, credit card payments, student loans, etc.) and divide that monthly amount by your gross monthly income. That percentage should be no higher than 41%.

To learn more about FHA loans, visit FHA on the web or call Robert at (904)743-9466.