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Tampa Bay Federal Credit Union Now Offers FHA Loans

Tampa, FL - (Wednesday, November 18, 2009) – Tampa Bay Federal Credit Union (TBFCU) is giving house hunters more reasons to buy now with their recent introduction of Federal Housing Administration Home Loans (FHA loans).  

Dean Clark, Real Estate Lending Manager at TBFCU, said, “We are expanding our home loan products so we can assist more of our members in purchasing their first home. The lower down payment requirement of an FHA is key for younger or first time buyer in today’s market place. Being their primary financial source is our goal and we pride ourselves in serving our members’ ever changing financial needs.”

Historically, FHA loans have allowed low-to-moderate income Americans to borrow money for the purchase of a home that under any other circumstance they would not be able to afford. Today, FHA has grown to primarily serve people who cannot afford a conventional down payment or cannot qualify with personal mortgage insurance companies.

The Federal Housing Administration does not make or guarantee loans, but insures the loans for lenders. The insurance provided minimizes the default risk lenders face when buyers put down less than 20 percent. TBFCU and other federally qualified lenders through FHA are authorized to take applications, process applications, underwrite and close the loans.

FHA loans are an especially attractive option to first-time homebuyers with their extremely low down-payment requirements, sometimes as little as 3.5 percent. Because of FHA’s popularity amongst many first-time home buyers, many believe there is a strict criterion of who can be approved. However, the only real specification is that the purchaser may only have one FHA mortgage at a time.

To be approved for an FHA mortgage, you must have a satisfactory credit history and you must be able to prove that your total monthly mortgage payment will be less than 29 percent of your monthly income. A purchaser’s long-term debt also factors in. While these qualifications may seem a little stern, they are actually much more lenient than traditional mortgage qualifications and allow many home-owning dreams come true each day.

For more information on TBFCU and FHA Loans, please visit their Web site at www.tampabayfederal.com or call one of their FHA Loan Specialists; Jay Kim at (813) 541-4002 or Mike Birch at (813) 545-6697