FHA – Low Down Payment

With new incentives throughout the real estate industry, there are buyers in the marketplace that are new to the process of residential mortgages.  With the FHA program, the required down payment is only 3.5%  and this down payment can be a gift from a relative.  In addition, the Seller can contribute up to 6% of the purchase price of the home towards the Buyer’s closing costs and prepaid items.    When you combine these two features of the FHA product, a Buyer can come to the closing table with no money out of his/her pocket.  This has enabled many people to purchase homes that do not have the 20% down payment required by most conventional lenders.

The FHA mortgage loan limit in the Tampa Bay Area is $ 292,500.00 – with the 3.5% down payment, the maximum purchase price would be $ 303,105.00 .   An FHA loan does have standards for the home to qualify.  Basically, the home needs to be in sound structural condition including roof, windows, doors, etc..   Minor cosmetic repairs are permitted under the FHA mortgage loan guidelines.   FHA does allow the purchase of multi-unit properties up to 4 units as long as the Buyer lives in the property as a primary residence.   Smith and Associates’ realtors are aware of these standards and work closely with us to ensure a seamless process.

FHA loans are also available to refinance your present mortgage to a lower interest rate.  Homes can be refinanced up to 96.5% of today’s market value.  This can be significant if you presently have a high interest rate and/or have an ARM loan that will be adjusting within the next couple of years.  Contact us to evaluate your present mortgage to determine if you would benefit from a FHA loan.

USDA – No Down Payment

USDA is a program through the Federal Government that allows up to 100% mortgage financing in rural areas.  The home has to be within a certain rural area which is determined by population concentration.   Tampa Bay area locations include Land O Lakes, Wesley Chapel, southern Hillsborough County, east Hillsborough County, etc.

As with  FHA loans, the Seller can contribute up to 6% of the closing costs/prepaid items, the Buyer can receive gift monies from relatives, etc.   Additional criteria to qualify for this loan program include income limitations for the Buyer(s) which vary according to the area of the country and the number of people that will be living in the home.

Smith & Associates Real Estate’s preferred Mortgage Consultants will be happy to look up properties and evaluate your situation to determine if you are eligible for this loan program.  For more information, please visit the website.

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