FHA Loan Program
Please note FHA financing requires a credit score of 640 or higher. For those with credit scores worse than 640 other Florida hard money options may have to be considered if your score can’t be boosted into the 640 range.
Here are some of the prime benefits of an FHA loan:
- Low down payment of 3.5%
- Very low mortgage insurance coverage (typically 50%-75% lower than conventional mortgage insurance)
- Co-signers (including non occupant co-signers) may be allowed.
- No approved zoning requirements
- Mobile Homes loans are not allowed
- 95% loan to value on cash out
- No reductions to loan amount for declining markets may be allowed.
- Not credit driven (low credit scores receive the same great rates as high credit scores)
- No need to pay off medical or small collection accounts (letters of explanation are used)
- No prepayment penalties EVER
- Security of a 30 year fixed mortgage
- 6% seller contribution is allowed for closing costs (no money out of pocket for buyer!)
- Ability to use non tradition trade lines to qualify (phone bills, light bill, electric bill, cell phone bill, etc.)
- High debt to income ratios up to 42% and up to 50% with compensating factors
- Compensating factors such as length of time on the job or funds in reserves help overlook negative factors
- No reserves required from buyer
- Gifts are allowed from family, friends, work, or other interested parties
Florida FHA loans are very popular right now as they allow first time home buyers and people with challenged credit access to low cost secure fixed rate mortgage.
If you have additional questions or need assistance, please call us at 305-371-8181 or toll free at 855-224-3222.