Sarasota Florida FHA Home Loan
Sarasota Florida FHA Mortgage Lenders in Sarasota Florida provide FHA home loans in all of Sarasota Florida for all credit types, including but not limited to bad credit, no credit, rent-to-own, manual underwriting to buy or FHA refinance in all of Sarasota, Florida including Sarasota Springs, FL Fruitville, FL Gulf Gate Estates, FL Bayshore Gardens, FL South Bradenton, FL Bradenton, FL Palmetto, FL Laurel, FL Venice, FL South Venice, FL North Port, FL Englewood, FL Gulfport, FL Saint Petersburg, FL Saint Pete Beach, FL
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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.
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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.
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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.
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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.
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Pre-Approval Process For FHA Mortgages
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, paystubs, and bank statements. If you’re self-employed or own a rental property, we need 2 years’ tax returns, business and personal returns.
FHA Mortgages Are More Affordable:
- 3.5% Down with 100% Financing options available.
- Seller Paid Closing costs up to 6%.
- Gifts from family or Grants OK!
- No reserves are required.
- FHA-regulated closing costs.
FHA Mortgages Are Flexable:
- Higher debt ratios up to 56.9%
- Less than two years on the same job is OK!
- Self-employed OK!
FHA Mortgage Credit / Downpayment:
- FHA minimum 580 score = 3.5% down or 96.5% financing.
- FHA minimum 500+ credit score = 10% Down
- FHA purchase 12 months after a Chapter 13 Bankruptcy
- FHA purchases 24 months after a Chapter 7 Bankruptcy.
- FHA purchase 3 years after a Foreclosure.
- No Credit Score Approvals using alternate trade lines.
- FHA Cashout Refinance Up To 80% loan-to-value!
4C FHA Mortgage Checklist
| 1. CASH | A minimum credit score of 580 qualifies for 3.5% down, with 100% financing options available. A 10% downpayment is required if your credit score is between 500 and 579. The seller can pay up to 6% of the closing cost; this must be requested in your purchase contract. |
| 2. CREDIT | Minimum 500+ credit score – based on payment history, not credit score driven. |
| 3. CAPACITY/(DTI) | 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. |
| SUMMARY | FHA mortgage loans are basically the easiest loan to qualify for. Purchase or Refinancing using FHA loans must fully document income and assets. |
What is an FHA Mortgage Loan?
FHA stands for the Federal Housing Administration. The FHA does not make loans directly instead, the FHA insures private mortgage lenders against loss. The FHA is governed by the U.S. Department of Housing and Urban Development (HUD), and FHA mortgages are backed and guaranteed by the U.S. government. This means that if a borrower stops making their mortgage payments, the government helps Sarasota , Florida FHA mortgage lenders recover losses. The FHA mortgage insurance encourages lenders to make loans to first-time home buyers, borrowers with bad credit, or no credit score, and to manually underwrite FHA loans. Overall, the FHA mortgage insurance makes FHA mortgage loans the easiest of all loan programs to qualify for. Keep in mind that the FHA loan is only for primary residences and is not intended to be used for second homes or investment properties.
FHA Mortgage Requirements Review
- Cash- FHA requires a minimum of 3.5% down with a 580 credit score and 10% down with a 500+ credit score. The FHA downpayment requirement can come from a gift, grant, or a 100% FHA downpayment assistance program. According to Aottom, the median home price in Sarasota Florida for single-family homes is $396,000 x 3.5% down = %13,860
- Capacity – or (DTI) Debt To Income Ratio- FHA guidelines say 31/43. This means your income for housing and 43 for housing plus all other payments on your credit report. But with the right FHA compensating factors, we have seen debt-to-income to up to 46.9/56.9
- Collateral – The home must appraise for the purchase price and be livable, habitable, and insurable.
- Credit- A 3.5% down payment is needed for those with scores at or above 580; for scores 579 to 500, it’s at least 10% down. It’s even possible to qualify with no credit score
Sarasota, Florida FHA Mortgage Service Areas:
This is a list of smaller local towns that we service around Sarasota, FL If you need an FHA mortgage lender near Sarasota, Florida, you have come to the right place. We are dedicated to making your FHA mortgage a win! We enjoy Sarasota, Florida, as a loan officer and bringing homeownership dreams to life. We will answer your questions in simple terms, help you through each step in home financing, and do everything in our power to help you go from getting pre-approved to relaxing at your Sarasota FL home.
