FHA Loan Orlando Florida

FHA Low money down Home Loans in Orlando Florida

FHA Home Loan Orlando florida

The home buying process can be confusing, not to mention that it is one of the most expensive purchases that most of us will make in their lifetimes. We want to be sure that you have the best information possible to help you navigate the FHA home loan for Orlando Florida. Home buyers in Orlando are fortunate to have the FHA Loan Programs which offers several loan programs to help minimize the out of pocket and streamline the home buying experience in Orlando.

FHA Loan in Orlando

The FHA provides insurance to FHA approved lenders that allow them to provide much more leverage than would be otherwise possible. The FHA loan in Orlando Florida allows for a 3.5% downpayment in 2020. The down payment must be from the borrower or from a gift from an acceptable source allowed by the FHA.

FHA Loans in Orlando, Florida range from $331,760 for 1 living-unit homes to $638,100 for 4 living-units. Conventional Loan Limits in Orlando are $510,400 for 1 living-unit homes to $981,700 for 4 living-units.  Jumbo loans over $1 million and Super Jumbo loans up to $3 million dollars have their own programs for Orlando luxury buyers.

FHA Loan Program

FHA guidelines for Employment history and loan income requirements?

A two-year employment and income history is required for both employees and self-employed borrowers by way of pay stubs, tax returns and W2s or 1099s.

Borrowers with court ordered alimony and child support must document receipt of the income for a minimum of three (3) months and proof that it will continue for at least three (3) years.

FHA Loan Income Requirement

FHA guidelines for Employment history and loan income requirements?

A two-year employment and income history is required for both employees and self-employed borrowers by way of pay stubs, tax returns and W2s or 1099s.

Borrowers with court ordered alimony and child support must document receipt of the income for a minimum of three (3) months and proof that it will continue for at least three (3) years. FHA Loans are one of the most popular loans in Orlando and around the country today due to the low credit requirement and downpayment necessary to purchase a home.

FHA Loan Credit Requirement

What is the minimum credit score required for FHA loans and first time home buyers?

A tri-merged credit report is required with a middle credit score of at least 620. Depending on overall credit, sometimes borrowers may qualify with middle scores as low as 580.

In some instances, where a co-borrower does not have any credit scores, FHA will consider approval so long as the primary borrower meets the minimum credit score requirements and has more than 50% of the qualifying income with a minimum of 3 tradelines active for last 24 months.

Regardless of credit scores, FHA still evaluates overall credit history to determine if borrower gets approved eligible findings that meet FHA approval guidelines.

FHA Loan Maximum Seller Credit Allowed

What is the maximum seller contributions/concessions for FHA loans?

Seller Credit and other third party contributions are limited to a max of 6% of the sales price.

What is the FHA waiting period for borrowers with previous bankruptcy?

Bankruptcy does not automatically disqualify a borrower from obtaining an FHA loan.  Minimum 2 years since discharge of chapter 7 bankruptcy.  Borrower with less than 2 years’ discharge may qualify for financing so long as they meet the extenuating circumstances as defined by FHA/HUD.  Same rule applies for borrower with chapter 13 bankruptcy.

However, borrower with chapter 13 bankruptcy may still qualify if the bankruptcy has been discharged less than 2 years if the lender is willing to do a manual underwrite with satisfactory payment history under the chapter 13 plan.

How does FHA treat charge-offs for credit card and installment loan?

Charge-off accounts are not included in borrowers’ debt.

How does FHA treat collection accounts for credit card and installment loan?

For non-medical collection accounts when the cumulative outstanding balance is greater than $2,000 borrower may either pay-off the balance or, for the purpose of debt-to-income ratio (DTI), provide proof of a payment plan. If neither are an option, the lender must use 5% of the outstanding balance and include it in the borrower’s DTI calculation.

What about borrowers applying for FHA loans that are currently in consumer credit counseling?

If the file receives automated Approve/Eligible findings then no documentation is required from the borrower.

Can I still qualify for an FHA loans if I have delinquent child support?

Delinquent child support must be paid current or in a payment plan.

What are the FHA guidelines for delinquent federal tax debt?

Borrowers with delinquent tax debt are ineligible unless currently in payment plan.

Can you get an FHA loan if you have a tax lien?

Borrowers with delinquent tax debt are ineligible unless currently in repayment plan. Repayment plan tax liens are not required to be paid in full if documentation is provided indicating the borrower is in a valid payment plan.

The following is required:

  1. The borrower must have made a minimum of 3 months of scheduled payments and documentation of the payments is required.
  2. The payment must be included in the DTI calculation.
  3. The borrower cannot prepay the payments to meet the 3-month payment requirement NOTE: Borrowers with delinquent taxes may or may not have a tax lien. Borrowers currently in a repayment plan, and the IRS has not filed a tax lien, are not required to meet the minimum 3-month payment requirement. The payment to the IRS will be included in the DTI calculation.

What are the FHA loan guidelines for borrower with previous foreclosure and deed-in-lieu?

Foreclosure waiting period is measured from the date of title transfer. Three (3) years must have elapsed from the time title transferred. If the foreclosed loan was an FHA loan, the 3-year waiting period is based on the date the FHA claim was paid (e.g. foreclosure 11/12/14, FHA claim dates was 7/12/15, the 3-year waiting period ends 7/13/18).

Borrowers with foreclosure/DIL within 3 years of case number assignment that was due to documented extenuating circumstances may be eligible if the borrower has re-established good credit since the foreclosure. A downgrade to manual underwriting is required. If the foreclosure was included in the bankruptcy, the foreclosure waiting period still applies. HUD treats the foreclosure and BK independently, not as a single event.

What are the FHA guidelines for borrowers with previous short sale and/or pre-foreclosure?

The three-year waiting period from date of title transfer still applies unless they were current at the time on short sale.

What are the FHA guidelines for income and debt ratios (also called DTI or Debt-to-Income ratio)?

Maximum debt-to-income (DTI) ratio varies based on overall credit history and assets.  Typically, the DTI cannot exceed 45% of the borrower’s gross income.  However, in some cases borrowers with as high as 54.9% DTI may be eligible and in other cases borrowers may be capped at 43% DTI.

How does FHA treat deferred student loans?

Borrowers with student loans that are in deferment or not fully amortized will be required to calculate 1% of the outstanding balance as minimum monthly payment to be included in their debt-to-income ratio (DTI) calculation.

FHA Property Requirements For Orlando and Nationwide

What are FHA Loan eligible property types?

  • Single-family residences
  • 2 – 4 unit planned unit development (PUDs)
  • Condominiums (FHA approved projects. Approval must be valid at time of case number assignment)
  • Modular / pre-fabricated properties (single-unit only)
  • Factory built but not built on a permanent chassis; built on-site similar to stick-built homes; permanently affixed to the foundation; must conform to local building codes. Property is legally classified as real property and assumes characteristics of stick-built such as permanent connections to water, electrical and waste disposal systems.
  • Mixed use must conform to residential nature of the neighborhood, and commercial use cannot exceed 25% of the gross living area.

HomeReady Mortgage Low down payment HomeReady® Home Loan 

HomeReady Mortgage confidently serves today’s low-income credit worthy home borrowers.

The HomeReady® loan is a low down payment home loan program that for offer 3% down. Credit scores however are higher than FHA with starting requirements for a FICO at 620  vs 580. Borrowers with credit scores of 680 or more can potentially receive better rates.  Cash for down payment can come from multiple sources including grants, gifts and community seconds with no minimum requirement to use your personal funds.  

The HomeReady® mortgage program requires you to take a quick class about home ownership. You can check  the education requirements for this program HERE

Why Choose A Florida Hard Money Lender

Our principal moved to Florida back in 2010 and although we now lend nationwide, CambridgeHomeLoan.com takes pride in their roots and the success that the Florida real estate markets created for us. Being a local Florida hard money lender and being knowledgeable in the various cities and township in Florida allows us to move quickly and to understand the obstacles that many out of state lenders cannot. For example, we understand  the continued development of St Petersburg downtown, the re development of Delray Beach, Miami and West Palm Beach. , The booming Fix and Flip business going on in and around Orlando and Miami.  We can help our clients take advantage of some of the best investment real estate returns in the country that exist right in the Florida markets.

Financing your Florida Investment Property

Florida is a robust real estate market with in addition to the continued growth of retirees moving here, new business are flocking here yearly for the less expensive cost of living, taxes and labor pools. The state has a growing underlying economy that not only includes medical and technology but tourism, air BnB that creates huge upside potential for investors.

As a result, the Florida’s real estate market is offers an excellent opportunity  for investors to maximize their returns.

Florida’s premier hard money lender CambridgeHomeLoan.com is here to help you succeed profitably in this competitive market.

CambridgeHomeLoan.com is an asset-backed Lender Focused on Customized Solutions

With our knowledge of the Florida’s fix and flip market, CambridgeHomeLoan.com is able to structure solutions that fit just about any hard money financing needs.  We fund most loans based on the value of the asset and can move diligently for investors to take advantage of the market.

CambridgeHomeLoan.com can also provide your take out financing once your project is completed in the  form of long term 30 year mortgage and arm or even a cash out refinance to purchase additional properties. 

Give us a call or apply for a loan today!

EXPERT FIRST TIME HOME BUYER GUIDE