FHA loans are an attractive option, especially for first-time homeowners and/or borrowers that have had credit issues in the past, because they are insured by the Federal Housing Administration (FHA). Primarily, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. The minimum down payment for an FHA mortgage loan is 3.5% of the purchase price. Currently FHA loans have lower interest rates than Conventional mortgage loan programs and can be more flexible in regards to derogatory credit items (bankruptcies, foreclosures, short sales, etc.) and credit scores. FHA mortgage loans do have maximum loan amounts that are set per county. As an example, the maximum FHA loan amount for a single family home in Indian River County, Florida is $294,515 in 2018.
Collins Home Mortgage is very active in offering FHA mortgages in Vero Beach, Sebastian, Lakewood Park, Fort Pierce, Port St. Lucie, Stuart, Palm City, Palm Bay, Melbourne (Florida), Viera and throughout the state of Florida.