Florida FHA Mortgage Lenders Qualifications

FHA Mortgage Lenders Qualifications in Florida

FHA mortgage lenders provide the most popular choice for Florida first-time home buyers in Florida. The Florida FHA mortgage program provides many advantages vrs conventional loans for new homebuyers who are considering purchasing their first home but have limited down payment and or less than perfect credit. When you compare the FHA mortgage loan programs to any other Florida mortgage options, most will see the clear advantages.

what-to-know-fha-qualifications

Most homebuyers with good payment history, with no credit or less than perfect credit, find they can qualify for an FHA mortgage using alternative proof of payment history. And if you can prove a timely payment history, there is a good chance you will qualify for an FHA Mortgage, even if you do not have a down payment, because we have 100% financing options. If the seller agrees to pay up to 6% in closing costs, then you could be on your way to owning your next Florida home. You would have to pay for your home inspections and FHA appraiser, but the down payment and closing costs can be covered by the FHA lenders and the home seller..

• 3.5% FHA Mortgage Minimum down payment

The Federal government insures private Florida FHA mortgage lenders against loss, which provides homebuyers with the opportunity to purchase with minimal cost. The FHA mortgage has a minimum 3.5% down payment that can come from a gift, grant, or FHA-approved lender. FHA also allows the Florida home seller to pay up to 6% of all the closing costs. FHA Minimum Credit Score of 580: Qualifies you for a 3.5% down payment. Credit Scores Between 500-579: Require a 10% down payment.

• Payment History For FHA

Prequalifying for a Florida FHA home loan is rather easy if you pay your bills on time. Because it’s the FHA that insures your home loan, the creditors and lending institutions make it feasible for anybody to qualify when they meet the basic requirements. The primary components of qualifying are the history of credit, earnings, and employment history.

• Debt-to-Income Ratio

FHA mortgage lenders’ standard max debt-to-income ratio is 31/43 if your credit score is under 580. Some lenders will go up to 47/57 with excellent credit and reserves. You’ll need proof of consistent employment for at least two years in the same line of work, verifiable with W-2 forms, pay stubs, and or tax returns to verify income.

• Collateral FHA Requirements

FHA mortgage will work for Single-family homes, multi-family 2-4 units, townhomes, villas, FHA-approved condos, manufactured, modular homes, and FHA-approved condos. The home must be available, habitable, and meet FHA/HUD minimum property standards. The property must undergo an appraisal by a Florida FHA-approved appraiser to ensure it meets minimum property standards and is worth the purchase price.

• FHA Mortgage Pre-Approval Process 

APPLY NOW on the top right of this page.  The FHA mortgage loan originator will call you to verify your mortgage application accuracy. The general loan documents needed to review your application include ID, W2, pay stubs, and bank statements. If you’re self-employed or own a rental property, we need 2 years’ tax returns, business and personal returns.

• 4C FHA Mortgage Lenders Checklist
  

  1. CASH	If you have a minimum credit score of 580, you can qualify for a 3.5% down payment with 100% FHA mortgage options available in Alafaya, Florida. If your credit score falls between 500 and 579, a 10% down payment is required. Additionally, the seller can contribute up to 6% toward closing costs, which needs to be specified in your purchase contract.
  2. CREDIT	Minimum 500+ credit score – based on payment history, not credit score driven.
  3. CAPACITY	debt-to-income: Standard 31/43 – Max DTI 46.9-56.9% with AUS approval
  4. COLLATERAL	Single-family homes, multi-family 2-4 units, townhomes, villas, FHA-approved condos, manufactured, modular homes.

Florida FHA Mortgage Lenders’ Loan Limits