Most homebuyers in Pensacola has several financing options when it comes to taking a mortgage on their home. One of the most popular is the Florida FHA mortgage loan. The FHA mortgage loan came into being with the objective of increasing ownership by providing homeowners with a cheaper and more convenient alternative to most traditional mortgage loans and by simplifying the purchasing process.
Here are some reasons why Pensacola first time buyers should choose an FHA home loan:
- Low down payment – The major advantage of the Florida FHA loan is the low down payment – only 3.5 percent down is required. 3.5 % for purchasing home is a very effective option when compared to the 10 percent down + required by many conventional loan programs. The FHA loan also allows the down payment funds in the form of a gift.
- No hidden fees – The Florida FHA home loan is a very transparent and safe choice for homeowners. Since the program is government backed, the FHA loan does not have any hidden charges, excess fees or sudden spikes in down payment.
- No bank savings requirement – At the time of closing, most traditional mortgage loans require the applicant to show that they have adequate cash reserves on hand. This usually is a deterrent for most first time homeowners, as they are required to show thousands of dollars in addition to the money that is required for closing costs and making down payments. However the FHA loans have no such requirement.
- More purchase power – The FHA loan is very liberal as it provides the applicant with a greater borrowing potential with higher debt to income ratios. Using this benefit to your advantage, you can spend more income on your housing expense. See the FHA loan limits for Escambia county here
- Availability – The Florida FHA loan is the most popular financing option in Pensacola and is readily available. A growing number of mortgage lenders and banks provide FHA loans.
- Closing Cost – The FHA program permits the home seller to pay the buyers closing costs – up to 6%.
- Low interest rate/ Fix Rates – FHA 30 year fix interest rates are currently near all time historic lows. The FHA loan programs offers secure 30 year fix rates terms.
- Adjustable Rate Option – The FHA loan came into being keeping in mind the tight budget constraints of first time homeowners. For this reasons the FHA has an adjustable rate house loan, which entails a very low monthly payment and curiosity rate.
Home buyers that have questions about applying for an FHA loan can reach out to us today by calling 800-743-7556 or just submit the quick Info Request Form on the right side of this page. Mobile users will find the short Info Request Form here
Select locations of Escambia county ( outside of Pensacola) are USDA Rural Housing approved – please learn more about the 100% USDA loan at www.UsdaMortgageSource.com
FHA Loans For First Time Homebuyers – Pensacola, Escambia County