No Money Down Florida FHA Mortgage Lenders
If you’re looking for a No-Money-down Florida FHA mortgage lender, then you’ve come to the right Florida mortgage site. No-money-down Florida FHA mortgage lenders are popular with first-time homebuyers who have little money saved but have a good, stable income and good rental and payment history. These Florida FHA mortgage lenders are backed by FHA mortgage insurance, making it easier for first-time Florida homebuyers to qualify.
No Money Down Florida FHA Mortgage Lenders
No Money Down 100% Florida FHA Mortgage Lenders
Florida FHA 100% CLTV Combo Florida mortgage lenders program is designed to increase homeownership opportunities for low-to moderate-income individuals and families by offering 100% financing in the form of an FHA first lien at 96.5% and a second lien of up to 3.5% to cover down payment and/or closing costs. There is no borrower income cap, and borrowers do not need to be first-time homebuyers in order to qualify. FHA 100% CLTV first lien and second lien products must be closed concurrently under this program. This program is offered in all of Florida. All FHA loans must meet FHA Guidelines. Refer to the FHA Single Family Housing Policy Handbook 4000.1 for FHA
Requirements. Quick notes: 600+ Scores can qualify; Repayable 2nd mortgage. – Up to 47/57% ratios acceptable = as long as they keep the AUS Approved/Eligible. This program offers 100% financing by combining an FHA first lien at 96.5% and a concurrent second lien of up to 3.5% to assist with down payment and/or closing costs.
FHA 100% key program highlights:
- Purchase transactions only
FHA first lien PLUS concurrent second lien for 100% CLTV. - Minimum 600 FICO.
- Standard 30-year fixed rate FHA first lien.
- No First-Time Home Buyer requirement.
- No Income Limits.
- Easy Underwrite! First lien and second lien have the same guidelines.
- AUS approval required (660+ for manual underwriting)
3.5% FHA 2nd Mortgage – Subordinate Financing
This 100% FHA mortgage program provides a concurrent second mortgage of up to 3.5% to cover down payment and/or closing costs. The second mortgage is sponsored by National Homebuyers Fund (NHF).
Second Mortgage:
• 10-year fully amortized second mortgage (monthly payment required)
• Note rate of second mortgage is 2.0% greater than the note rate of the FHA first mortgage
o The second mortgage does not need to be locked by the client
o FHA mortgage lender will lock the second lien when the first lien is locked
o All second liens are priced at par.
• Proceeds may be used for down payment and/or closing costs.
• There must be no cash back to the borrower in the transaction.
• No additional subordinate financing is allowed.
Loan File / Documents:
• Separate first lien and second lien loan files are required
• 2nd lien specific URLA required
• 2nd lien must be fully disclosed (LE, COC, CD, )
• NHF Registration Confirmation (obtained by prior to the note date)
• NHF Program DPA Funding Commitment Notice (obtained by prior to the note date)
• Homebuyer Education Certificate (see info in Borrower Eligibility section below)
• A separate appraisal is not required for the second lien
• Title policy is not required for the second lien
FHA-insured Mortgage on a New Principal Residence:
A Borrower may be eligible to obtain a second FHA-insured Mortgage without being required to sell an existing property covered by an FHA-insured Mortgage if the Borrower:
• Is relocating or has relocated for an employment-related reason to an area more than 100 miles from the
Borrower’s current Principal Residence, or
• Has an increase in family size, or
• Is vacating a jointly owned property, or
• Was a non-occupying co-borrower.
FHA 100% Mortgage Loans For Primary Residence Only:
A primary residence is a property that will be occupied by the borrower the majority of the calendar year and meets the
following criteria:
• At least one borrower must occupy the property and sign the Note and security instrument for the property to be
considered owner-occupied.
• The borrower must occupy the property within 60 days after the loan closes with continued occupancy for at least
1 year. The only exceptions allowed are due to hardship or extenuating circumstances.
• Military Personnel stationed elsewhere are considered occupant-borrowers and are eligible for maximum
financing provided a member of the immediate family will occupy the property as a principal residence.
FHA Mortgage On Property Flips/ Resale Requirements
Property flipping is a practice whereby a property recently acquired is resold for a considerable profit with an artificially
inflated value. To address the issue of property flipping, FHA has placed certain time restrictions and additional documentation requirements on purchase transactions involving the resale of an existing property.
Property eligibility is based upon the time that has elapsed between the date the seller obtained legal ownership of the
property (based upon the date of settlement) and the date the buyer and seller execute the sales contract that will result in the FHA mortgage insurance (the resale date). Resale Less Than or Equal to 90 Days: If the re-sale date is 90 days or less following the date of acquisition by the seller, the property is not eligible for a mortgage to be insured by FHA.
Transactions involving one of the following exemptions are not subject to the time restrictions on resale mentioned above:
• FHA REO properties sold by FHA.
• Resale of properties purchased by an employer or relocation agency in connection with employee relocation.
What FHA intends to exempt is bona fide relocation agencies that contract with employers to handle the relocations
of their employees. A relocation agency DOES NOT include individual real estate agents that advertise
themselves as relocation experts and who purchase properties from persons who are relocating from the area.
• A builder selling a newly built home or building a home for a homebuyer wanting to use FHA-insured financing.
Example: A builder selling to another builder prior to the completion of a home would be exempt from the time
restrictions.
• Property inherited by the property seller. The property seller will not be required to hold title to that property for 90
days before he/she can sell it with FHA-insured financing. The property seller must still be the owner of record but
the 90-day ownership period will not be required. Further, since there was no previous sale of the property
because it was inherited, there is no previous sales price that might trigger the second appraisal requirement set
forth in the flipping rules. The underwriter must include the documentation evidencing the inheritance in the case
binder when submitting the case for insurance.
• Sales of properties by state and federally chartered financial institutions and Government Sponsored Enterprises
(GSE) (e.g. Fannie Mae and Freddie Mac). Note: Mortgage Insurance companies are not considered a state or
federally chartered financial institutions and are not qualified as a GSE.
• Sales of properties by nonprofits approved to purchase HUD-owned single-family properties at a discount with
resale restrictions.
• Sales of properties by local and state government agencies.
• Sales of properties within Presidentially-Declared Disaster Areas, upon FHA’s announcement of eligibility in a
mortgagee letter specific to said disaster
FHA Mortgage Resale Greater Than 90 Days:
FHA Loans with resale dates greater than 90 days and up to 180 days are generally eligible for FHA mortgage insurance by FHA but may require supplemental documentation, including an additional appraisal.
• If the resale price is greater than or equal to 100% over the property seller’s acquisition price, a second FHA
appraisal from a new appraiser is required. The second appraisal cannot be provided by or paid for by the
borrower. If the resale price is less than 100% of the property seller’s acquisition price, then no additional
appraisal documentation is required.
Homebuyer Education is Required:
• Homebuyer’s Education for at least one borrower is required.
• Education to be provided by a Fannie Mae or Freddie Mac or HUD approved non-profit counseling agency.
o HUD Participating Housing Counseling Agencies
o Fannie Mae HomeView Certificate Course for First Time Homebuyers
o Freddie Mac CreditSmart Homebuyer U
o Framework Homebuyer Course
