Many homebuyers ask us if there is a way to purchase a home in Florida with a low down payment and affordable rates, even if they do not have perfect credit.
If that describes you, the mortgage product that is right for you may be an FHA loan.
What is an FHA Mortgage?
An FHA mortgage is a home loan backed by the Federal Housing Administration. It is available for first time homebuyers and repeat homebuyers.
Your lender takes on reduced risk with an FHA mortgage because of the FHA’s backing.
That means that lenders have increased flexibility with respect to the rates they offer and the borrowers they approve.
Benefits of Florida FHA Loans
- Buy a home with a low down payment.
- Pay low closing costs, or in some scenarios, no closing costs.
- You do not need perfect credit.
You can use an FHA home loan to purchase a home, construct a home, renovate a home, refinance, or consolidate debts.
As with conventional home loans, FHA mortgages may feature fixed or adjustable interest rates. You also can choose a loan term.
100% CLTV FHA DPA Program Features 96.5% FHA | 3.5% 2nd Mortgage | 100% CLTV
- Minimum FICO reduced to 580
- Approve/Eligible required below 640
- Zero DTI restrictions with DU Approval
- 2-4 units are now eligible
- Manufactured Homes now eligible at 640+
- Now eligible to FHA county limits
- Zero the income limits
- 580 Fico Minimum (Approve Eligible req below 640 Fico)
- 2nd Mortgage Created In-House
- Qualify w/2nd Mortgage Payment included in Housing DTI
- First Time Homebuyer ok
- Homeowner Education required (at least one borrower)
- Follow DU Findings on Approve Eligible
- Manual Underwrite OK 640 + Fico- Follow FHA Manual u/w Guidelines
- Non-Occupying Co-Borrowers Allowed
- Identity of Interest Transactions Allowed
- DACA Borrowers Eligible
Are You Eligible for an FHA Mortgage in FL?
First time and repeat homebuyers who meet the following requirements may be able to qualify for an FHA loan:
- Your credit score will need to be at least 500. The exact interest rate and down payment you qualify for will depend on your credit score.
- Your debt-to-income (DTI) ratio should be no higher than 43-45%.
- For the past two years, you must be able to document steady employment.
- You must have a clear Credit Alert Verification Reporting System (CAIVRS) record.
- If you have a foreclosure in your past, the three year waiting period must be over.
- If you have a bankruptcy in your past, the 12 to 24 month waiting period must be over.
- FHA mortgages can only be used to buy primary residences on permanent foundations. For a home to be eligible, construction must have taken place on or after June 15th, 1976. Single-family homes, 2-4 unit multifamily homes, and HUD-approved condos are all potentially eligible.
Buy a Home With an FHA Loan Now
Are you ready to buy a home in Florida with a low down payment and affordable rates? Your credit score does not have to stand in the way with an FHA mortgage. To apply now, please call (561) 316-6800 to schedule your consultation. It’s time to achieve the American dream of homeownership.