Winter Haven, FL: 5 FHA Secrets You Need to Know

In my continued efforts to clear up some of the mystery that still seems to surround FHA lending here in Winter Haven, Florida – I’ve pulled together 5 “Quick Hit” FHA secrets you should keep handy as you do your home loan homework!

When using a non-occupant co-borrower, such as parents, the occupant borrower is not required to have any income or assets of his/her own
2- to 4-unit owner-occupied properties are eligible for 97% financing at the same interest rate as 1-unit homes
Mom and Dad can lend, not gift, some or all of the money for closing, and put a second lien against the home that exceeds 100% Loan to Value (LTV = Loan Amount / Home’s Value) Note: The $7,500 First Time Homebuyer Tax Credit can be used to pay Mom and Dad back!
15 year loans at 90% LTV have ZERO monthly mortgage insurance requirements
FHA has NO declining market policy reductions in LTV. (Loans over $417,000 in declining markets use the lesser of two appraisals to determine value)

These are just a few things to keep in mind as you look into FHA loans to fund the purchase or refinance of your Winter Haven home. If you’re considering a Winter Haven, Florida home purchase or refinance using an FHA loan, give me a call at 863-604-3019. We’ll go over your financial situation and make sure things are in order.