FHA 203K Lenders In Florida

FHA 203K Lenders In Florida: Florida Primary Home Rehabilitation Loan

The FHA Section 203(k) Rehabilitation Mortgage Insurance Program lets Florida FHA mortgage applicants finance the purchase or refinance of a Florida home and its rehabilitation costs through a single Florida FHA mortgage. Our FHA 203(k) Florida mortgage lenders offer FHA’s Limited 203(k) and Standard 203(k) programs.

FHA 203K Florida Mortgage Lenders Key Requirements:

FHA 203K Mortgage Lenders Forms And Documents: 

☐ Contractor’s Fully Executed Bid(s) A Homeowner/Contractor Agreement must be completed for every contractor who has submitted a bid. Fill in all blanks: select a date 6 months out from the estimated closing to fill in the completion date,
amount of bid must match bid amount exactly and all blanks must be completed
☐ Homeowner Contractor Addendum is required
☐203(k) Borrower Acknowledgement form ☐
☐FHA Limited 203(k) Maximum Mortgage Worksheet HUD-92700 OR FHAC Calculator
☐Separate work plan and/or an LOE, provided by borrowers detailing proposed repairs and
improvements is included with the submission; no specific format required. (HUD required) 

Florida FHA Mortgage Lenders  – Primary Residence Requirements: 

Guidelines are subject to change without notice.

FHA 203K Florida Mortgage Lenders Product Parameters

Occupancy: FHA Loans Are For Primary residence only Transactions • Purchase • Rate/Term Refinance

FHA 203K Mortgage Lenders Minimum Credit Score: • FHA 203K Florida mortgage lenders require a Minimum Credit Score: 620 • A tri-merge credit report is required on all loans • Qualifying score: o Where three scores are reported, the middle score is the qualifying score o Where two scores are reported, the lowest score is the qualifying score o Where only one score is reported that score is the qualifying score • Where the Mortgage involves multiple Borrowers, the lowest qualifying score of all borrowers is used • Where the Mortgage involves multiple Borrowers and one or more of the Borrowers do not have a
credit score (non-traditional or insufficient credit), the lowest qualifying score of the Borrower(s) with
credit score(s) is used • At least one occupant borrower must have a credit score. Mortgages where one or more of the co-borrowers do not have a credit score are only eligible with AUS “Approve/Eligible” or “Accept/Eligible”

Ineligible FHA 203K Florida mortgage lenders Transaction Types:
• Cash-out Refinances
• Texas Section 50(a)(6) loans are not eligible
• Properties listed for sale at the time of application are not eligible.
• Investment or Second Home Properties
• FHA Back to Work Program (RFHA30BTW)
• No builder spec foreclosures

FHA 203K Florida mortgage lenders Underwriting Method All loans must be decisioned through FHA TOTAL Scorecard. Provide a copy of the TOTAL Scorecard recommendation from DU or LPA. Loans not receiving an acceptable AUS result may be manually
underwritten subject to eligibility.

Eligible FHA 203K Florida mortgage Properties • Attached/Detached SFRs • Attached/Detached PUDs • FHA-approved Condos – with interior unit upgrades only • 2-4 Units • HUD REO properties • Manufactured Housing
To be eligible for the 203(k) program, the property must be a structure that has been completed for at least
1 year.

Eligible FHA 203K Borrowers • U.S. citizens • Permanent resident aliens • Non-occupant co-borrowers • Inter Vivos (Living) Trusts (A power of attorney is not allowed on properties held in a trust)

203K FHA Mortgage THINGS TO KNOW
☐Appraisal must show the property in an improved state with an Average or better condition ratin
☐Credit score must be at least 620; High Balance 640; Manufactured homes 640
☐DTI maximum AUS 55%, Manual 40/50%, AUS HB 50%, Manual 31/43%.
☐Contact a Florida FHA 203K  Mortgage Renovation Specialist for assistance
☐There is NO non-arms length relationship between borrower(s), consultant, and contractor(s)
☐Structural repairs are NOT eligible for a Limited 203(k). (see guidelines for more information)
☐Cash back to the borrower is not allowed
☐Appraisal value is as follows: o Purchases: “after improved” ONLY – an “as is” value can not be provided on the appraisal report o Refinances owned > 12 months or inheritance/gift from family: Two Appraisals may be
recommended – *One for “subject to” value and one for “as-is” value. “As-Is” appraisal is
highly recommended, typically resulting in reduced funds to close. Refinances owned < 12 months: Two Appraisals are required. One with “subject to” value and one for “as-is” value
☐Contingency – min 10% required on all loans. 15% if power and/or water are off at time of appraisal –
up to 20 % when unforeseen situations arise – i.e., mold, fire, or water damage, pending inspections.
☐ Financed ☐ Cash
☐Supplemental Origination Fee for all 203(k) loans is the greater of $350 or 1.5% of total renovation
budget (capped at $525)
☐Maximum closing disbursement is the lesser of 50% of repairs OR $17,500
☐203(k) Limited Qualified Opportunity Zone (QOZ) max $50,000 total renovation budget including all fees
Property address is located in a QOZ. Visit https://opportunityzones.hud.gov/resources/map
☐Total sum of all bids does not exceed $44,350 *approximate and based on 10% contingency
☐FHA Case number reflects loan is a 203(k) QOZ *FHA limits QOZ loans to 15,000 per year nationwide.

FHA 203k FLORIDA CONTRACTOR DOCUMENTATION

☐Contractor’s license: valid through the completion date of the project ☐
☐Gen Liability Insurance: Certificate of liability insurance in the amount of $1 million minimum, valid
through the completion date of the project ☐
☐Contractor Profile and Reference Form: signed by processor or originator for certification of
references.
☐Note: Must include three complete references with all information completed. References must be of
similar nature of work, size of job, similar cost and scope of services. All references provided must be
for completed work within the last 12 months
☐Bond: Required per state requirements and will vary by location
☐IRS W-9 form for Contractor: Fully completed, only one TIN number provided, on a current year form
and signed/dated. Must be legible ☐