florida

HOW DO I QUALIFY FOR AN FHA MORTGAGE?

To qualify for a Florida FHA Mortgage, borrower must meet certain eligibility requirements. They must have at a minimum;

FHA Mortgage applicants applying for an FHA insured loan must have at least a 580 middle FICO score to purchase a Florida home with only 3.5% downpayment. Compared to any conventional loan programs, FHA is the easiest to qualify for, credit wise.

A down payment of 3.5% is required on all FHA mortgage purchases. Best part of all, the down payment can come from a family member as a gift towards the purchase of the Florida house. The donor must provide the source of the money being used as a “Gift Fund” to the borrower.

FHA MORTGAGE FLORIDA

FLORIDA FHA MORTGAGE LOANS HAVE MINIMAL DOWNPAYMENT AND CLOSING FEES: 

  • Down payment only 3.5% of the purchase price. 
  • Gifts from family or Grants for down payment assistance and closing costs OK! 
  • Seller can credit buyers up to 6% of sales price towards buyers costs. 
  • No reserves or future payments in account required.
  • FHA regulated closing costs. 

FLORIDA FHA MORTGAGE LOANS ARE EASY TO QUALIFY FOR BECAUSE YOU CAN: 

FLORIDA FHA MORTGAGE LOANS ALLOW HIGHER DEBT TO INCOME & EASIER JOB QUALIFYING 

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The debt-to-income requirement allows the FHA Mortgage applicants to have a higher back-end ratio as compared to other loan programs. FHA will go as high as 55% DTI; no other loan program in the market subscribes to this rule but FHA. Florida FHA Mortgage Lenders can go as high as 57% back-end ratio to qualified FHA Mortgage applicants.

Contrary to popular belief, credit alone does not guarantee a FHA mortgage loan. Credit, in conjunction with, income and FHA mortgage applicant’s assets determine affordability and the total home loan to be extended.

The Federal Housing Administration (FHA) insures the loan made by Florida banks and other private Florida FHA mortgage lenders. The first thing that every prospective borrower needs to do is consult with a Florida FHA approved mortgage lender. An FHA Home Loan Specialist will do an analysis of the borrower’s credibility and ability to pay back. This is a simple pre-qualification process. The FHA mortgage applicant can take it one step further by opting to be pre-approved. This process will require documentation of income and assets required to move forward with the loan.

AMCAP Mortgage can get an automated underwriting approval from either Fannie Mae or Freddie Mac and go over the requirements and/or additional required documentation with the borrower. This will ensure that the borrower is approved per FHA guidelines.

What is the Federal Housing Administration? The Federal Housing Administration, generally known as "FHA", provides Florida FHA mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.

What is FHA Mortgage Insurance? Florida FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner's default. Loans must meet certain requirements established by FHA to qualify for insurance.

Why does FHA Mortgage Insurance exist? All Loan Terms (Greater than 15 years and less than or equal to 15 years):

LTV greater than 90%
Annual MIP will be collected until the end of the loan term, or 30 years, whichever occurs first.

LTV less than or equal to 90%
Annual MIP will be collected until the end of the loan term, or 11 years, whichever occurs first.

You also have to pay the 1.75% for any amount of loan at all LTVs.

How is FHA Mortgage Insurance funded? FHA is the only government agency that operates entirely from its self-generated income and costs the taxpayers nothing. The proceeds from the FHA mortgage insurance paid by the homeowners are captured in an account that is used to operate the program entirely. FHA provides a huge economic stimulation to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue.

What Is The History of FHA? Congress created the Federal Housing Administration (FHA) in 1934. The FHA became a part of the Department of Housing and Urban Development's (HUD) Office of Housing in 1965.

When the FHA was created, the housing industry was flat on its back:

  • Two million construction workers had lost their jobs.
  • Terms were difficult to meet for homebuyers seeking mortgages.
  • Mortgage loan terms were limited to 50 percent of the property's market value, with a repayment schedule spread over three to five years and ending with a balloon payment.
  • America was primarily a nation of renters. Only four in 10 households owned homes.

During the 1940s, FHA programs helped finance military housing and homes for returning veterans and their families after the war.

In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower income Americans. When soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA's emergency financing kept cash-strapped properties afloat.

The FHA moved in to steady falling home prices and made it possible for potential Florida homebuyers to get the financing they needed when recession prompted private FHA mortgage lenders insurers to pull out of oil producing states in the 1980s.

The FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages since 1934. FHA currently has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio.

In the 80 years since the FHA mortgage insurance program was created much has changed and Americans are now arguably the best housed people in the world. HUD has helped greatly with that success.

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CREDIT REQUIREMENTS

FHA MORTGAGE

550 MIN FICO

PORTFOLIO MORTGAGE

NO MINIMUM

VA MORTGAGE

550 MIN FICO SCORE 

USDA LOANS

580 MIN FICO SCORE 

FANNIE MAE.

620 MIN FICO SCORE 

FREDDIE MAC

620 MIN FICO SCORE 

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