As an FHA licensed Florida Mortgage Broker, it's a real pleasure to provide the Florida First-Time Home Buyer community with FHA programs that result in home ownership.

FHA loan programs provide competitive Florida mortgage rates, and are designed to meet the needs of Florida First-Time Home Buyers.

As you progress through the steps required to secure your Florida home loan, please contact me via email, phone, or through my online Florida mortgage application form. In doing so, I assure you that you will receive a better understanding of what Florida FHA loans are all about.

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Florida FHA First-Time Home Buyer Basics

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How Do You Define the term: Mortgage?

Your Florida mortgage is a contractual agreement that outlines the terms between you and a bank or investor where real property (your Florida home) is used as the collateral against the debt.

Where Does Money for Mortgages Come From?

Unless you're dealing with a private investor or hard money loan - all mortgage money comes from the same sources.

FHA mortgage loans are backed through a group of investors through complex relationships on Wall Street which involve Mortgage Backed Securities, Government Sponsored Enterprises(GSEs) such as Fannie Mae and Freddie Mac.

Basically, investors or banks set the guidelines on the mortgage money that they lend to homeowners. If you, as a Florida homebuyer, have less than 20% equity in a property, then a separate mortgage insurance policy (Private Mortgage Insurance - PMI) is required which normally has another set of qualifying guidelines associated with it.

Is the FHA a Mortgage Lender?

No, The Federal Housing Administration (FHA) is not a mortgage lender. It is a US Government agency established in 1934 as part of the National Housing Act of 1934. The FHA was started to help stabilize the housing market by providing insurance on mortgage loans.

Basically, the FHA provides lenders with insurance against borrowers who default on their home loans.

A Special Point to Consider: Not all mortgage companies can fund FHA loans. To do so, they must adhere to strict licensing requirements that include special FHA audits, in addition to state and federal regulation.

If you take away one thing from this brief FHA Mortgage lesson - it should be that working with an FHA licensed mortgage company should make you feel a little more safe and confident in the professionals you are trusting with your Florida mortgage transaction.

What does it Take to Qualify for a Florida FHA Mortgage?

To qualify for a Florida FHA mortgage, underwriters will take the following factors into consideration:

• FHA mortgage loan amount
• Florida FHA lending limits
• Borrower’s employment info, income verification, and personal documents
• Creditworthiness of the borrower
• Borrower's ability to cover the 3.5% downpayment requirement

• Property conditions and appraisal information

How do I find the right home?

First-Time Home Buyers looking to qualify for an FHA mortgage need to pay close attention to a few FHA appraisal requirements that may impact the approval. In many cases, it's a good idea for first-time homebuyers to see about getting into home that are in foreclosure or are in need of a little repair. Should you find yourself in this category, then consider an FHA 203(k) loan - a special program that provides for funds to make that possible.

In all cases, it's a good idea for you to work with an experienced real estate agent who understands FHA loans.

What are the main benefits of buying a Florida home right now?

Besides the fact that FHA mortgage rates and property values are very low, there is a new $8000 First-Time Home Buyer tax incentive that makes buying your first home now an attractive proposition.

Sure, you need to be cautious about future property values - the neighborhood you're buying into, etc. But in many cases - low rates should make up for the difference in any short term losses. As always, please understand that small mortgage interest rate increases can really add up to big increases in your mortgage payment over time.

What is my next step?

Excellent question! It is important to present an offer to a seller once you have had the opportunity to get a full mortgage approval from your mortgage lender.

Since the mortgage processing and approval process may take a few weeks to work out any underwriting challenges or questions, it will strengthen your negotiating position when you have an underwritten bank approval when submitting your offer to a seller.