The Federal Housing Administration (FHA) was created with the goal of protecting lenders and improving the housing market. By insuring home loans made by approved lenders, both lenders and buyers are able to benefit from the FHA loan program. Homebuyers receive great rates and are able to qualify with less than ideal credit and lenders are protected in the event a borrower defaults on their mortgage. The FHA offers loan options for purchases, refinances, financing special renovation projects, and even reverse mortgages. North Star Mortgage Network Inc. offers some of the lowest rates available on FHA loans in Jacksonville.

Low down payment and credit score requirements have made FHA loans a top choice among first-time homebuyers. It is possible for a first-time homebuyer to qualify for an FHA loan with a credit score of 580 a down payment of only 3.5%. Family members can even offer the down payment as a gift if a borrower does not have the cash on hand to meet the minimum requirement.

Jacksonville FHA Loan Requirements

  • Credit Score – A minimum credit score of 580 is needed to qualify. If you have a credit score between 500 and 579, you may still be able to qualify but a down payment of 10% may be required.
  • Debt-to-Income Requirements – A debt-to-income (DTI) ratio of 43% or less is standard. A DTI ratio of up to 50% may be approved in certain circumstances.
  • Down Payment – 3.5% of the purchase price is the minimum down payment requirement. A higher down payment may be needed depending on a borrower’s credit score as mentioned above.
  • Property Requirements – All properties must meet certain safety, security, and soundness (structural integrity) requirements.

Maximum loan limits vary by county and can range from $271,000 up to $636,500 in high-cost areas.

The FHA loan program and the benefits that it provides are made possible through mortgage insurance. There are two mortgage insurance premiums (MIP) required with each FHA loan. An up-front premium of 1.75% of the purchase price is automatically added to your mortgage balance by the FHA at the time of purchase. A premium is also paid monthly as part of your mortgage payment. The monthly premium will be between .45% and 1.05% of your annual mortgage balance. The percentage applied will be based on factors including the total loan amount, your loan-to-value (LTV) ratio, and the length of your mortgage.

The FHA offers various loan options to meet a wide range of borrower needs. In addition to purchase loans, cash-out refinance and streamline refinance options are available for current FHA loan holders. Buyers interested in a rehabilitation project can use an FHA 203k loan to combine the purchase of a home and the cost of renovations and repairs into a single mortgage. The only federally insured reverse mortgage, the Home Equity Conversion Mortgage (HECM) is also available to Jacksonville seniors.

Whether you are looking to purchase your very first home in Jacksonville, or are a current homeowner interested in refinancing an FHA loan, at North Star Mortgage Network Inc., we can assist you with all of your FHA loan needs. Contact us today for more information on Jacksonville FHA loans or to begin the pre-qualification process!