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FHA loans are Gaining Florida Market Share


FHA loans in Florida are gaining Florida market share at an incredible pace.  Four years ago very few sellers would accept an offer from an FHA buyer who wanted to take advantage of an  FHA mortgage loan in Florida. This is because it was a sellers market.  In fact most Florida sellers wouldn’t accept an offer where the home was not sold, “as is”.  This meant that the Florida buyer would be responsible for any repairs and all repairs  needed to the property uncovered in the home inspection.  Since Florida sellers would just kill the contract, wait 2 weeks and more than likely have a higher offer from a Florida buyer willing to pay more.

The Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs. Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs. Easier Credit Qualifying Guidelines such as: No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

FHA loans in Florida were less than 5% of the Florida market back then.  Today most Florida sellers didn’t want to be responsible for a tougher FHA appraisal that most Florida FHA loans were known for.  In today’s Florida real estate market most sellers would be happy for any offer.  Since it is a Florida buyers market now the added an FHA appraisal requirements no longer are an impediment to a offer being accepted.  FHA loans across Florida now make up over 30% of the market.  It is even higher in some Florida places.

With Florida FHA loans being more popular, Florida realtors and Florida closing agents and Florida mortgage companies are getting more comfortable with them.  This is great for Florida homebuyers since they have some protections that most other loans do not have.  These include streamline refinances and an assumable feature.  Conventional loans do not have these same advantages.  Also most conventional loans now require at least  10% down payment compared to a 3.5% down payment for FHA loans in Florida.

FHA loans in Florida also have another big advantage.  The Florida mortgage applicant can get the entire down payment as a gift.  They also allow  the seller pay up to 6% of the closing costs.  The mortgage conventional loans are not as flexible with their requirements.  You also don’t need to be a Florida first time home buyer to take advantage of a Florida FHA loan.  You can only have one FHA loan at a time (except under rare circumstances), and it needs to be a primary Florida home. I would not be surprised to see the FHA loans in Florida secure an even greater market share in the future.

For Florida first time home buyers and other Florida mortgage applicants , the FHA home loans can have key

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This entry was posted on Friday, December 31st, 2010 at 7:28 am and is filed under Finance. Tags: FICO, Florida, Gaining, Loans, market, Share You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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