The FHA (Federal Housing Administration) is the largest insurer of mortgages in the world, backing over 34 million properties since the 1930’s. FHA provides mortgage lenders with insurance on all loans funded in refinancing or purchasing a home. Mortgage companies are in a sense protected or insured should a buyer default on their mortgage payment. So what are the Jacksonville FHA Lending Loan Limits, Guidelines?
With an FHA loan, an applicant could qualify to purchase a home for as little as 3.5% of the property’s purchase price! Homebuyers may finance their closing costs within their loan. Jacksonville-approved FHA lenders can provide loan program options that require minimal down payments, whether it be FHA, USDA or VA Purchase Loans.
FHA loan limits and restrictions are partially dependent on community restrictions. These are the FHA loan basics:
- FHA is allowed to insure loans on amounts up to 115% of the county median house price within that Metropolitan Statistical Area (MSA), but cannot exceed 150% or be lower than 65% of the Government Sponsored Enterprise (GSE) conforming mortgage limit
- Anyone who meets the credit, employment, and income requirements is able to qualify
- You do not have to be a U.S. citizen, but proof of legal residency in the US is required.
- FHA Loans are for primary homes and can be useful to first-time buyers trying to enter the market due to the reduced down payment requirements.
- 2024 Florida FHA loan limits are $498,257 for most counties. Please find the complete mortgage limit list here for Duval, Clay, St. John’s and Nassau County.
The most frequently asked FHA question always has to do with loan qualifying requirements? That question can only be answered by a trained loan advisor, as each borrower’s situation is different. However, generally speaking, FHA loan applicants will need the following:
- Acceptable credit score, over a 600 if financing the maximum 96.5%
- Min down payment of 3.5% – down payment CAN be a gift from family, etc.
- Stable work history over the last 2 years.
- No previous home foreclosures, etc. in the last 5 years.
What You Need to Know About FHA Loans
- Competitive low fixed rates, even lower than many conforming mortgage rates. Also, adjustable rate (ARM) options.
- FHA mortgages allow borrowers to qualify for the lower interest rate of a conventional loan, rather than using a higher, subprime mortgage rate, which can save you thousands on your interest charges.
- Buyers can finance repair costs and renovations within the mortgage with a Jacksonville 203K loan, and some Florida FHA programs allow buyers to make repairs after closing instead of having to save money and make the repairs one at a time as their budget allows.
- Only a 3.5% down payment is required (as opposed to 5% + with conventional loans)
- FHA home mortgage loans require no cash reserves or large savings.
- FHA loans are available to family members co-owning a property, even if only one of them occupies that property.
FHA mortgages are not for every homebuyer because there are very specific requirements. This type of loan may not offer enough money to families needing a larger mortgage. In addition, the difference between FHA and conventional loans may mean the upfront Mortgage Insurance Premium (MIP) would cost more than it would with Private Mortgage Insurance (PMI).
2024 is a great time to buy in Jacksonville
Jacksonville’s steady home prices make this the perfect time to buy. Take advantage of the emerging buyer’s market and start moving towards homeownership. The paperwork process for an FHA loan can be extensive; you will need documentation such as bank records, pay stubs, etc. We understand that this process can get overwhelming, so we want to help you keep a clear head and stay on track when working through the FHA loan process.
FHA Mortgage Source is Florida’s leading FHA loan resource, serving you 7 days a week. Please call us at PH: 800-743-7556 or submit the quick Info Request Form on this page.