FHA Loan Florida

FHA Low money down Home Loans in Florida

FHA Home Loan Florida

The Federal Housing Administration (FHA) was formed not only to protect lenders from borrowers who default on their mortgages but to improve the US housing market. By insuring FHA approved lenders, the FHA makes it possible for home buyers to purchase homes under an FHA home loan that provides  great rates with low down payment and more flexible credit score requirements. The FHA loan program for Florida and around the US has allowed the FHA to become the largest insurer of mortgages in the world, having insured over 35 million mortgages since they were first created in 1934.

 CambridgeHomeLoan.com can help you secure the best rates and terms for and FHA loan in Florida. There are many different FHA loan programs available to meet the wide range of borrower needs including a purchase of a new home, the refinancing of you current home loan, the financing of renovation and rehabilitation projects, and reverse mortgages. In addition there are First Time Home Buyer Programs, programs for seniors and to refinance your current loan to save on your monthly payment. 

FHA Loan in Florida

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 Florida requires only a 3.5% down payment in 2020. The down payment is allowed to be a gift from an acceptable source as allowed by the FHA.

FHA Loans in Florida range from $331,760 for 1 living-unit homes to $638,100 for four living-units. Conventional Loan Limits in Florida 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 Florida luxury buyers.  These loan limits can change for high cost areas so be sure to ask your CambridgeHomeLoan.com FHA loan specialist for current guidelines. 

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 mortgage or Bank FICO with middle credit score of at least 620. Depending on overall credit, sometimes borrowers are able to qualify with middle scores or FICO 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 what your credit scores is, FHA still evaluates overall credit history to determine if borrower gets approved eligible findings that meet FHA approval guidelines.  It is also important to note that your consumer FICO is not the same as your mortgage FICO or Bank score. Banks use a different calculation and you should contact your loan officer to understand the difference between the consumer and bank scores.

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. For VA Loans the maximum seller contribution is 4%. It always pays to try to get the maximum seller contribution that you can .

What is the FHA Loan waiting period for borrowers with previous bankruptcy?
A Bankruptcy does not automatically disqualify a borrower from receiving an FHA loan.  If your bankrupcy was discharged 2 years ago you may be eligible today for an FHA loan program. If you bankruptcy was discharged less than two years ago and you have extenuating circumstances you might still be eligible to qualify.  You can find out more by applying here!.   Same rule applies for borrower with chapter 13 bankruptcy.

A chapter 13 has some different requirements as a chapter 13 bankruptcy may still qualify if the  lender is willing to do a manual underwriting and the borrower has a satisfactory history of payments under their Ch 13 plan.

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

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

How does FHA treat the collection accounts on my credit report?

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.

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 / Debt to income 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/Deed in Lieu 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 Bankruptcy  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. Speak to your loan officer for specifics.

What are the FHA guidelines for DTI or Debt-to-Income ratio?

The 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. Due to our volume size we can allow for higher DTI which enables you to receive a higher loan amount even if you have significant debt.

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 that will be added in their debt-to-income ratio (DTI) calculation.

 

FHA Property Requirements For Florida and Nationwide

What are FHA Loan property types?
  • Single-family Homes
  • Two to Four planned unit development (PUDs)
  • Condos
  • Modular or pre-fabricated properties (single-unit only)
  • Mixed use must conform to residential nature of the neighborhood, and commercial use cannot exceed 25% of the gross living area.

Florida 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 loan with starting requirements for a FICO at 620  vs 580. This may be offset by the lower capital contribution required of 3% vs 3.5% .  Cash for a down payment can come from multiple sources including grants, gifts and community seconds with no minimum requirement to use your personal funds.  The program is great for developer built new home loans.

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

Florida Hard Money Loans

EXPERT FIRST TIME HOME BUYER GUIDE Florida

Florida’s #1 First Time Home Buyer Program By City

Including FHA Loan programs with just 3% Down, VA Loans (Active military, Retired, National Guard and their families) Statement Only and other Non-QM Home Loans

Dunedin
Dunnellon
Eatonville
Edgewater
Englewood
Eustis
Everglades
Fernandina Beach
Fisher Island
Flagler Beach
Floral City
Fort Lauderdale
Fort Meade
Fort Myers
Fort Myers Beach
Fort Pierce
Fort Walton Beach
Gainesville
Gandy
Gateway
Geneva
Gibsonia
Gibsonton
Gifford
Gladeview
Glencoe
Glen Ridge
Glen St. Mary
Glenvar Heights
Godfrey Road
Greenacres
Green Cove Springs
Green Meadow
Greensboro
Greenville
Greenwood
Gretna
Grove City
Groveland
Gulf Breeze
Gulf Gate Estates
Gulfport
Gulf Stream
Gun Club Estates
Haines City
Hallandale
Hampton
Harbor Bluffs
Harbour Heights
Harlem
Harlem Heights
Hastings
Havana
Haverhill
Hawthorne
Heathrow
Hernando
Hernando Beach
Hialeah
Highland Beach
Highland City
Highland Park village
High Springs
Hiland Park
Hillcrest Heights
Hilliard
Hillsboro Beach
Hobe Sound
Holden Heights
Holiday
Holly Hill
Hollywood
Holmes Beach
Homestead
Homestead Base
Homosassa
Homosassa Springs
Horseshoe Beach
Howey-in-the-Hills
Hudson
Hutchinson Island
Hypoluxo
Indialantic
Indian Creek village
Indian Harbour Beach
Indian River Estates
Indian River Shores
Indian Rocks Beach
Indian Shores
Indiantown
Inglis
Interlachen
Inverness
Islamorada

Jacksonville
Jensen Beach
Juno Beach
Jupiter
Kendall
Kensington Park
Key Biscayne village
Key Colony Beach
Key Largo
Keystone
Key West
Kissimmee
Lacoochee
La Crosse
Lady Lake
Laguna Beach
Lake Buena Vista
Lake Butler
Lake Worth
Lantana
Largo
Lauderdale-by-the-Sea
Lauderdale Lakes
Lauderhill
Laurel
Laurel Hill
Lawtey
Layton
Lazy Lake village
Lecanto
Lee
Leesburg
Lehigh Acres
Leisure City
Leisureville
Lely
Lely Resort
Lighthouse Point
Limestone Creek
Lisbon
Live Oak
Loch Lomond
Lochmoor Waterway Estates
Lockhart
Longboat Key
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Loughman
Lower Grand Lagoon
Lutz
Lynn Haven
Macclenny
McGregor
McIntosh
Madeira Beach
Madison
Maitland
Malabar
Malone
Manalapan
Manasota Key
Manattee Road
Mango
Mangonia Park
Marathon
Marco Island
Margate
Marianna
Marineland
Mary Esther
Masaryktown
Mascotte
Matlacha
Matlacha Isles-Matlacha Shores
Mayo
Meadow Woods
Medley
Medulla
Melbourne
Melbourne Beach
Melbourne Village
Melrose Park
Memphis
Merritt Island
Mexico Beach
Miami
Miami Beach
Miami Gardens
Miami Lakes
Miami Shores village
Miami Springs
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Micco
Middleburg
Midway
Midway
Milton
Mims
Minneola
Miramar
Miramar Beach
Mission Bay
Molino
Monticello
Montverde
Moore Haven
Mount Dora
Mount Plymouth
Mulberry
Myrtle Grove
Naples
Naples Manor
Naples Park
Naranja
Nassau Village-Ratliff
Neptune Beach
Newberry
New Port Richey
New Port Richey East
New Smyrna Beach
Niceville
Nobleton
Nokomis
Noma
Norland
North Andrews Gardens
North Bay Village

Ocala
Ocean Ridge
Odessa
Okeechobee
Oldsmar
Orlando
Ormond Beach
Osprey
Oviedo
Palatka
Palm Beach
Palm Coast
Palmetto
Palm Harbor
Palmona Park
Palm River-Clair Mel
Palm Shores
Palm Springs village
Palm Springs North
Palm Valley
Panama City
Panama City Beach
Paradise Heights
Parker
Parkland
Paxton
Pebble Creek
Pelican Bay
Pembroke Park
Pembroke Pines
Penney Farms
Pensacola
Perry
Pierson
Pine Castle
Pinecrest village
Pine Hills
Pine Island
Pine Island Center
Pine Island Ridge
Pine Lakes
Pineland
Pinellas Park
Pine Manor
Pine Ridge CDP (Citrus County)
Pine Ridge CDP (Collier County)
Pinewood
Pittman
Placid Lakes
Plantation
Plantation
Plantation Island
Plantation Mobile Home Park
Plant City
Poinciana
Polk City
Pomona Park
Pompano Beach
Pompano Beach Highlands
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Ponce de Leon
Ponce Inlet
Port Charlotte
Port La Belle
Port Orange
Port Richey
Port St. Joe
Port St. John
Port St. Lucie
Port St. Lucie-River Park
Port Salerno
Pretty Bayou
Princeton
Progress Village
Punta Gorda
Punta Rassa
Quincy
Raiford
Ramblewood East
Ravenswood Estates
Reddick
Redington Beach
Redington Shores
Richmond Heights
Richmond West
Ridgecrest
Ridge Manor
Ridge Wood Heights
Rio
Riverland Village
Riverview
Riviera Beach
Rock Island
Rockledge
Rolling Oaks
Roosevelt Gardens
Roseland
Rotonda
Royal Palm Beach village
Royal Palm Estates
Royal Palm Ranches
Ruskin
Safety Harbor
St. Augustine
St. Cloud
St. George
St. James City
St. Leo
St. Lucie village
St. Marks
St. Pete Beach
St. Petersburg
Samoset
Samsula-Spruce Creek
San Antonio
San Carlos Park
Sandalfoot Cove
Sanford
Sanibel
Sarasota
Sarasota Springs
Satellite Beach
Sawgrass
Schall Circle
Scott Lake
Sea Ranch Lakes village
Sebastian
Sebring
Seffner
Seminole
Seminole Manor
Sewall’s Point
Shady Hills
Shalimar
Sharpes
Siesta Key
Silver Lake
Silver Springs Shores
Sky Lake
Sneads
Solana
Sopchoppy
Sorrento

South Patrick Shores
South Sarasota
South Venice
Springfield
Spring Hill
Spring Lake
Stacey Street
Starke
Stock Island
Stuart
Sugarmill Woods
Suncoast Estates
Sunny Isles Beach
Sunrise
Sunset
Sunshine Acres
Sunshine Ranches
Surfside
Sweetwater
Sylvan Shores
Taft
Tallahassee
Tamarac
Tamiami
Tampa
Tangelo Park
Tangerine
Tarpon Springs
Tavares
Tavernier
Taylor Creek
Tedder
Temple Terrace
Tequesta village
Terra Mar
The Crossings
The Hammocks
The Meadows
The Villages
Thonotosassa
Three Lakes
Three Oaks
Tice
Tierra Verde
Tildenville
Timber Pines
Titusville
Town ‘n’ Country
Treasure Island
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Trinity
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Tyndall AFB
Umatilla
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University
University Park
Upper Grand Lagoon
Utopia
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Vero Beach South
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Villages of Oriole
Villano Beach
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Virginia Gardens village
Wabasso
Wabasso Beach
Wahneta
Waldo
Warm Mineral Springs
Warrington
Washington Park
Watertown
Wauchula
Wausau
Waverly
Webster
Wedgefield
Weeki Wachee
Weeki Wachee Gardens
Wekiwa Springs
Welaka
Wellington village
Wesley Chapel
Wesley Chapel South
West and East Lealman
West Bradenton
Westchase
Westchester
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Westgate-Belvedere Homes
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West Miami
Weston
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Wilton Manors
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Wright
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Yeehaw Junction
Yulee
Zellwood
Zephyrhills
Zephyrhills North
Zephyrhills South
Zephyrhills West
Zolfo Springs