Lisa Barton

The maximum loan amount for FHA loans in North Florida is $268,500, and the maximum loan-to-value is 96.5%, thus allowing for a 3.5% down payment.  A downpayment of only 3.5% is outstanding right now considering the tightening of the credit markets----conventional loans on primary homes currently require a 10% down payment in North Florida due to our “market classification”. Part of the beauty of this program is that the down payment can be “gifted” by family, friends, etc., or even your employer (see your lender for more details). Unfortunately the seller is no longer allowed to assist with the down payment via “down payment assistance” programs such as Neimiah.  Conventional loans, on the other hand, require the buyer to have at least 5% of the 10% down payment from their own funds. 

Currently the minimum credit score required is 600 (lenders typically take the middle score of the three credit bureau FICO scores). Conventional loans require a 620 minimum credit score. The “mortgage insurance premium” is only .5% of the loan amount annually (which is divided by 12 to get a monthly figure) ---lower than the conventional percentage. Another great feature is that the interest rate is not “tiered” like conventional rates-----as long as your credit score meets the minimum threshold, the rate stays the same---no “add-ons” in pricing for lower scores, higher loan-to-values, etc.

Finally, FHA loans are often used when first-time homebuyers are seeking city or state “bond” money to supplement the closing costs and/or down payment-----see your lender for more details on these specialized programs as the requirements are very strict and include a first time home-buyers course. Check with your lender to get all of the facts on this great homebuyer financing option!

Donald Ster, MBA, is a senior-level mortgage consultant working for Wells Fargo Home Mortgage.  He has been in the industry for over 6 years, and resides in Jacksonville, Florida with his wife and daughter.