Florida FHA Loans

If you currently live in Florida, now is a great time to consider buying your own home. Since the economy has slowed down a bit in recent years, the housing market has also slowed, which means that housing prices are lower than they've been in years. It's truly a buyer's market right now, and sellers are generally very willing to negotiate on the asking price of their home.

Why go FHA?

Buying your first home, however, can be a scary prospect, partly because the financial outlay can be so great. That's where the Florida FHA loan program comes in. The Florida FHA loan program works with lenders to provide guaranty services for loan that they administer, which means that lenders are more willing to loan to borrowers with less than perfect credit histories.

Florida FHA loans also have less stringent requirements regarding down payments, and buyers need only put about 3.5% of the purchase price down, as opposed to the 20% usually required by traditional loan programs. Buyers also have the option of rolling the closing costs into the loan which further reduces the amount of cash they will need at closing. Needless to say, the relaxed credit standards and less cash at closing mean that many homebuyers who would not qualify for traditional programs will be able to obtain a Florida FHA loan and purchase a house, which is the aim of the FHA program.

Florida FHA Loan Limits

fha refinance

While you're picking out your new house, it's important to keep in mind that the Florida FHA loan program does have a maximum lending amount which is based on the type of dwelling you're purchasing as well as where you're living. The lending limit is based on the median cost of purchasing a home in the country and is then adjusted for higher cost of living areas, which means that if you live in an area where housing is expensive, your limit will be higher and you can still afford to purchase a home.

The overall maximum for 2009 is $271,050 for a single family dwelling, and that is the current limit for Tallahassee and Gainesville. If you live in Jacksonville, however, the limit is $387,500, and in Orlando, the current limit is $353,750. These limits assume that you're purchasing a single family home, and if you're considering a multi-family dwelling, you'll need to consult with your lender reqgarding the current limit for your situation.