FHA loans for Clay County.Orange Park to Keystone.Local broker.

FHA in one paragraph

An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government insures it, lenders accept a smaller down payment and more forgiving credit than on a conventional loan. HUD's rules put the minimum down payment at 3.5% with a credit score of 580 or higher, and 10% down for scores from 500 to 579 (HUD Handbook 4000.1). You still pay back the lender. The insurance just makes the lender more willing to say yes.

FHA or USDA? Clay County is where this question comes up most

Clay County is unusual because two low-down-payment programs both fit a lot of buyers here.

• USDA can mean no down payment at all, but only on an eligible property, and only if your household income is under the USDA limit for your family size. Much of rural Clay County qualifies; the more developed Orange Park and Fleming Island core mostly does not.
• FHA works on any address in the county, with no income cap. The trade is the 3.5% down payment and FHA's mortgage insurance.

If the home you want sits in USDA territory and your income fits, USDA usually costs less. If not, FHA is the backstop. We check both before you make an offer, so you are not choosing a program by guesswork. See the Clay County overview for which parts of the county tend to fall where.

What the FHA appraisal looks for in Orange Park's older homes

FHA appraisals check that the home is safe, sound and livable, not just what it is worth. In Orange Park's older neighborhoods, the items that most often need attention are:

• Roofs near the end of their life
• Peeling paint on homes old enough to have lead paint
• Missing handrails, broken windows, or exposed wiring
• Water heaters and electrical panels that are not up to current standards

None of these kill a deal by themselves. Usually the seller fixes them before closing, or you negotiate a price that reflects the work. We tell you what to watch for before the appraisal, not after.

Condos and townhomes

A condo can only be financed with FHA if the whole condo project is on FHA's approved list. Approval depends on things like how many units are owner-occupied and whether the association is financially healthy. Some Clay County complexes are approved and some are not, and it changes over time. Send us the complex name before you tour and we will check.

Manufactured homes in Middleburg and Keystone Heights

The rural parts of Clay County have plenty of manufactured homes, and FHA can finance many of them. The home generally has to be built to HUD's manufactured housing code, sit on a permanent foundation, and be classified as real estate rather than a vehicle. A home that fails any of those tests may need a different loan type. If you are looking at a manufactured home, tell us up front so we check it before you pay for inspections.

The FHA loan limit for Clay County

HUD sets a maximum FHA loan amount for each county every year, and Clay County shares its limit with the rest of the Jacksonville metro. Most Clay County purchases fall well under it, but higher-end Fleming Island homes can go over. You can look up the current figure on HUD's FHA mortgage limits page, or we confirm it when we run your file.

Want a number before you talk to anyone? See what you can qualify for using this week's Freddie Mac rate. No application, no credit pull. When you are ready to shop, start with a Clay County pre-approval.

Other areas we serve

• FHA loans in Jacksonville and Duval County
• St. Johns County and Ponte Vedra
• Nassau County and Amelia Island