The FHA insured loan is a great loan option for many borrowers as it gives home owners a very low down payment option, allows features that conventional loans do not (a conventional loan is any loan that is not a government loan), and has historically very low interest rates.  Currently the FHA will allow a loan amount up to $291,250 for a single family residence in Brevard County, Fl.  Right now this limit is good through the calendar year 2009, however, there is talks of extending the limits into 2010.

Just to recap, here is a list of some features of the FHA loan:

Source of Down Payment Flexibility  - Your required down payment can come as a gift from many different sources, as well as approved community assistance programs.

Great Rates and Low Monthly Mortgage Insurance  - While the rates change on a regular basis, they are currently very low, and do not much differ from conventional financing.  Depending on credit score, FHA rates could actually be lower than conventional financing.

Low Down payment option – Minimum of 3.5% down payment

Seller Paid Closing costs - seller can pay up to 6% of the purchase price towards closing costs and prepaids to help you purchase the home with very little out of pocket expenses.

No penalty for lower credit scores - you are not penalized in the rate for having a lower qualifying score, however, your credit score must be over 620 as most lenders have set that as the minimum allowable score.

Rehabilitation loan option - there is even an FHA loan that will allow you to finance repair or updating into the loan.

The FHA insured loan remains a great option for so many different situations, however,it may not be right for every borrower.  This is why it is imperative to contact a mortgage professional to help you find the product that best fits your situation.  Please feel free to contact me anytime with questions.