6 Common Myths About FHA Loans

by Front Office | Feb 26, 2025 | Blog, Homeowners, Homes, Villas and Condos, Investment Property in Florida, Just Sold, Local Events, Long Term Rental, Mortgages, New Construction, New Listing, News, Property for Sale, Property for Sale in Orlando, Property Management, Real Estate Components, Real Estate News, Retirement / 55+, Uncategorized, Vacant Lot

6 Common Myths About FHA Loans

As home prices continue to rise, more buyers are considering Federal Housing Administration (FHA) loans to make homeownership more accessible. FHA loans are government-backed mortgages known for their flexible lending criteria, making them a great option for buyers with lower credit scores and smaller down payments. However, misconceptions about FHA loans persist, potentially discouraging buyers from taking advantage of this financing option. Here, we break down six common myths about FHA loans and uncover the truth behind them.

Myth #1: FHA Loans Are Only for Buyers with Bad Credit

Truth: While FHA loans allow borrowers with credit scores as low as 500 to apply, they are not limited to those with bad credit. In fact, the average credit score for FHA borrowers is 683, with 80% of applicants having a credit score of 600 or higher (according to 2024 data from Ellie Mae). This means that borrowers with good or even excellent credit can still benefit from FHA loans.

Myth #2: FHA Loans Are Only for First-Time Home Buyers

Truth: Although FHA loans are popular among first-time home buyers, they are also available to repeat buyers and individuals with low to moderate incomes. Many homebuyers use FHA loans as an affordable financing option, regardless of whether it’s their first home purchase or not.

Myth #3: FHA Loans Have Higher Interest Rates

Truth: Contrary to popular belief, FHA loans often come with competitive interest rates, sometimes even lower than conventional mortgage rates. Borrowers with higher credit scores and larger down payments may qualify for some of the best available rates. It’s essential for buyers to compare both FHA and conventional loan options to find the best fit for their financial situation.

Myth #4: FHA Loans Take Longer to Close

Truth: Many assume FHA loans take significantly longer to close than conventional loans. However, data from 2024 Value Penguin shows that FHA and conventional loans take roughly the same amount of time to close—an average of 47 days. The closing timeline depends more on the lender’s efficiency and the buyer’s preparedness rather than the type of loan.

Myth #5: FHA Loans Can Only Be Used for Single-Family Homes

Truth: FHA loans are versatile and can be used to purchase a variety of property types, including single-family homes, townhouses, HUD-approved condos, and even multifamily properties (up to four units). The only requirement is that the borrower must use one of the units as their primary residence.

Myth #6: FHA Loans Have Income Limits

Truth: Unlike some government-backed loan programs, FHA loans do not have income limits. High-income earners can also qualify, as there are no restrictions on how much a borrower can make to be eligible for an FHA loan.

The Bottom Line

FHA loans offer flexibility, accessibility, and affordability, making them a valuable option for many buyers. Whether you are a first-time homebuyer or a repeat buyer, these government-backed loans can help you achieve your homeownership goals.

Before ruling out FHA financing, consult with a mortgage professional to explore your eligibility and compare loan options. Don’t let myths keep you from securing the home loan that’s right for you!

For more information visit: Motto Mortgage

Contact an Expert Today!

Safety Tips for Renters: Ensuring Your Smoke Detectors Are Ready

by Marketing | Jan 31, 2025 | Blog, Buyers, Homeowners, Homes, Villas and Condos, Investment Property in Florida, Just Sold, Local Events, Long Term Rental, Mortgages, New Construction, New Listing, New Rental Listings, News, Press Releases, Property for Sale, Property for Sale in Orlando, Property Management, Real Estate Components, Real Estate News, Renters, Retirement / 55+, Sellers, Theme Parks and Attractions, Things to Do in Orlando, Uncategorized, Vacant Lot

Safety Tips for Renters: Ensuring Your Smoke Detectors Are Ready

As renters, it’s important to stay proactive about fire safety. Smoke detectors are essential for protecting you and your home. Here are some key safety tips to keep in mind:

1. Test Monthly

Press the test button on each smoke detector once a month to ensure it’s working properly. Regular testing is a simple way to stay safe.

2. Replace Batteries Regulations

Replace the batteries in your smoke detectors at least once a year—or sooner if you hear the low-battery alert. Fresh batteries help ensure reliable operation.

3. Check Expiration Dates

Smoke detectors typically last around 10 years. Be sure to replace yours if it’s nearing the end of its lifespan, or if it shows signs of malfunction.

4. Report Issues Promptly

If you notice that a smoke detector is malfunctioning, missing, or making strange noises, inform your landlord right away. Quick action can prevent serious issues.

5. Familiarize Yourself with the Escape Plan

Know your building’s fire escape routes, exits, and designated meeting areas. This knowledge is crucial in an emergency situation.

6. Know Local Regulations

Different areas may have specific rules regarding smoke detector maintenance. Contact your local fire department or building office to stay informed about your area’s requirements.

By following these simple guidelines, you can help protect yourself and your home from fire hazards. Stay safe and take action today!

10 Tips for a Winning Offer

by Elsa Soto | Aug 4, 2021 | Blog, Homes, Villas and Condos, Real Estate Components

10 Tips for a Winning Offer

With housing inventory being at an all-time low there is a great deal of competition when it comes to buying a home. So how do you as a buyer make your offer stand out – well here are ten things to consider to increase the chances of your offer being accepted:

First, Make Your Home Search a Priority

This may sound a little strange but in this sellers market you must be proactive. Ask your Realtor to establish an automatic property search that notifies you when a home meeting your criteria is listed – and then respond to them quickly.

Be Flexible With the Closing Date

Some sellers may be wanting to close quickly, however, some may need some extra time for relocation purposes or having a new home built. Being accommodating to the seller’s schedule may help in closing the deal.

Present a Clean Offer

The fewer contingencies the better – if you can avoid making an offer with financial constraints or seller concessions great but before removing any financing contingencies make sure you fully understand the implications.

Shorten the Length of Your Inspection Period

The shorter the timeframe for an inspection period, the better for the seller of the home. Some buyers are deciding to waive the inspection period completely but again speak with your Realtor before making that decision.

Offer Above-Asking Price on the Home

If you want to secure a home in today’s hot seller’s market, you may have to craft your offer above-asking price. Consider homes that have sold recently and equally important homes that are under contract and likely to close in the near future – your Realtor should be able to provide this information.

Put Down a Larger Earnest Money Deposit (EMD)

It will show the seller you are a well-qualified, good-faith buyer serious about purchasing their home.

Make a Greater Down Payment

Similar to the Earnest Money Deposit, putting down a larger down-payment than required shows the seller that you are in a good financial position and are serious about going through with the purchase.

Include an Escalation Clause in Your Offer

When you add an escalation clause to your offer, you are giving a maximum price up to which you will outbid other offers. Although you may not be the only one adding an escalation clause, it will give you an advantage over buyers without one.

Pay in Cash

If you are able to make a cash offer do it. Deals subject to financing contingencies are often at the mercy of the lender’s process so a cash offer is preferred especially if competing against other financed offers.

Now these are all great tips but remember every market is different and the details for every transaction are different.

Most importantly: Work with an Experienced Realtor

Our Realtors have been in this business for over 30 years here in Central Florida they are a fantastic resource.

Contact us today and let us guide you safely through the process and we wish you the best of luck finding the perfect home.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

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