FHA loans requires Florida FHA loan applicants to demonstrate a good repayment history of all debts.Â FHA considers history as the most useful guide in determining an FHA Loan applicants willingness to repay credit obligations and serves as a model in predicting his/her future actions.
Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:
Minimal Down Payment and Closing costs.
- Down payment less than 3% of Sales Price Gifts are allowed
- Seller can credit up to 6% of sales price towards closing and prepaid costs.
- 100% Financing available
- No reserves required.
- FHA regulated closing costs.
Easier Credit Qualifying Guidelines such as:
- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 2 year after a Bankruptcy.
- FHA will allow a home purchase 3 years after a Foreclosure.
To take advantage of the FHA program in Florida, give us a call 1-954-667-9110 or use our quick application to find out more about the many FL mortgage programs we can make available. Or Apply now for a FL FHA home loan.
FHA MINIMUM CREDIT SCOREÂ =Â 580 REQUIRED FOR 3.5% DOWNPAYMENT
A Florida FHA loan applicant who has made payments on previous or current obligations including credit cards, student loans, and other monthly payments in a timely manner represent a reduced risk to FHA.Â Contrary, if the FHA loan applicants credit history, despite sufficient income to support the debts, shows continuously slow or Â late payments such as judgments and delinquent credit accounts the Florida FHA loan applicant will need to show strong offsetting factors will be necessary to approve the loan.Â Â
When analyzing an FHA loan applicants credit report, FHA lenders generally focus on general pattern of credit behavior rather than isolated occurrences of late payments.Â Often times, FHA loan applicants will experience a period of financial difficulty in the past and does not necessarily disqualify a loan applicant.Â However FHA lenders will require reasonable explanations of the credit derogatory and evidence of offsetting factors to explain the circumstances such as a new job or promotion with greater stability and pay, will be necessary to qualify.Â All derogatory credit information must be explained, in writing, by the FHA loan applicant.
The following is a brief synopsis of the credit underwriting guidelines for FHA home loans:
Lack of credit history:Â If an FHA Loan applicant does not have a minimum of 3 trade lines on their credit report, alternative forms of credit may be used.Â This would include items such as auto insurance payment history, utility bills, etc.Â
Included credit obligations:Â Any installment loan (e.g. student loans, car loans, etc.) with less than 10Â months remaining does not need to be included when qualifying for a FHA home loan.Â However, consideration is given to a large debt of over $100 a month, regardless of the number of months remaining.Â Furthermore, payments on auto leases with less than 10 months must be included in the qualifying ratios.Â The minimum payment on all revolving accounts (i.e. credit cards) is also factored in.Â If the borrower has an open revolving account without a balance, $10 per open account should be included when qualifying. Any loan where the borrower has co-signed for another party is included with their debts unless the borrower can prove that the the other party has made the payments on their own for a minimum of 12 months.
Chapter 7 Bankruptcy:Â FHA requires a minimum of 2 years since the discharge of the bankruptcy.Â An explanation of the bankruptcy will be required.Â Furthermore, the FHA Loan applicant should have re-established credit (i.e. secured credit card) with no late payments.Â Â
Chapter 13 Bankruptcy:Â FHA will consider FHA Loan applicant still paying on a Chapter 13 bankruptcy if the payments to the court have been made for a minimum of 1 year in a satisfactory manner (as verified with the courts) and with the approval of the court trustee.
Federal Debts:Â A FHA Loan applicant is not eligible for a FHA loan if he/she is delinquent or in default on any federal debt (such as a HUD or VA mortgage, student loans, SBA loans or a tax lien against his/her property).Â Borrowers can become eligible by bringing any delinquent accounts current, making satisfactory repayment arrangements with the creditor (generally a 3 month history will be required), or paying the account in full.
Judgments:Â Judgments must be paid or have 12 months of arranged payment history
Collection Accounts:Â Collections do not need to be paid Â (LOX) needed
Foreclosure:Â A FHA Loan applicant who has had a property foreclosed upon, or who has given a deed-in-lieu of foreclosure within the previous 3 years, is generally not eligible for a FHA home loan.Â However, if it was the result of extenuating circumstances beyond the borrower's control (such as the death of a spouse, loss of employment, or serious long-term illness, etc.) and the borrower has since re-established good credit, an exception may be granted.Â However, extenuating circumstances do not include the inability to sell a house when transferring from one area to another.
Non-purchasing Spouse:Â If a married FHA Loan applicant is purchasing a property by himself/herself, the credit obligations of the spouse must be included with the application and will be factored in with the borrower's credit obligations and used to determine the financial capacity of the borrower.Â Furthermore, the non-purchasing spouse may be required to sign a security instrument or documentation relinquishing all rights to the property. Â Â Â
A long time ago, the FHA loan was the only alternative to local Florida bank financing for home buyers. There is an old saying: Wait long enough, and everything comes back into style. This rule applies just as well to Florida FHA mortgage program. Long-overlooked, the FHA mortgage is becoming popular again with Florida Home Buyers for its low rates and the real security it provides borrowers.
For Florida banks and Florida FHA mortgage lenders the FHA loan financing offers the security of a government insured Mortgage. Win/Win! To learn more, call today at 1-954-667-9110 or just use our fast and easy quick application!
Easiest Qualification - The FHA mortgage loan insures Florida mortgage lenders against loss for loans made to properly qualified FHA home loan borrowers. So you're likely to find FHA mortgage loans with terms that make it easier for you to qualify.
Minimal Downpayment Requirements - FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your experienced and expert loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.
Less than Perfect Credit works! - The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!
Lowest Cost Over the Life of the FHA Loan - The Florida FHA home loan rates are extraordinarily competitive. FHA's lower risk to the lender means a better rate for the borrower.
Safeguards for Florida Homeowners Who Get Behind - The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you'll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.
Options for Manufactured Housing - Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-954-667-9110 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!
FHA Loans Are Fully Assumable - When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.
These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-954-667-9110 to speak with a friendly Florida FHA loan specialist now!
The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.
The FHA 203k mortgage loan program is nothing more than a specialized FHA home loan designed to help homeowners make home improvements. It is especially popular in neighborhoods with properties in need of rehabilitation.
The FHA 203k loans work in Florida communities in much the same way as Construction loans for home improvement. Eligible borrowers can use the proceeds from these mortgage to renovate and improve their primary residences.
Qualifying for a 203k FHA mortgage uses the same guidelines as a standard FHA mortgage for the purchase of a Florida home.
Although Florida FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Florida is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.
We have been working with the FHA program for many years. We're experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It's one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.
You may be surprised at how flexible sellers are in the current market and how many programs there are that provide Downpayment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!
The FHA program offers excellent fixed rate options and never a prepayment penalty. If other mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call today an compare the costs of getting an FHA home loan for your home purchase. Call 1-954-667-9110 to speak with an FHA mortgage expert before accepting any conventional mortgage quote as the best you can do!
An FHA streamline refinance is one of the easiest home loans for Mortgage Lenders and borrowers. Since HUD approved you for the original FHA loan, the paperwork to refinance is minimal and the process is simple.
So long as you have made your FL FHA loan mortgage payments on time for the previous 12 months, you can lower your monthly payment if interest rates go down with minimal out of pocket expense. Even if you have been late on your FHA mortgage, you might still qualify for an FHA streamline refinance in Florida under very specific conditions.
Less documentation and no appraisal are just two of the reasons a FHA streamline refinance is cheaper and faster for the borrowers who qualify.
When your mortgage lender helps you get a streamlined FHA refinance on your existing mortgage loan, he or she will make certain that you meet these conditions:
- Your current mortgage must be an FHA mortgage.
- You must have had your FHA Mortgage for at least 6 months.
- You must have paid your mortgage on time for the most current 12 months.
- Your FHA Streamline Refinance must lower the principal and interest portion of your mortgage payment by at least $50 or convert the mortgage from an ARM to a fixed rate FHA home loan.
- You can't get cash out on the FHA streamline refi.
- You must have an FHA appraisal if you are rolling the closing costs into the FHA streamline refinance.
- Any existing liens on your Florida home must be subordinate to the new FHA mortgage.
Although a streamline refinance does not allow you to cash out equity, we have a FHA loan refinance program that is specifically designed for borrowers who want to cash out equity to consolidate debts, make home improvements or to access funds for other purposes.
Unlike many conventional loan programs, the FHA mortgage does not adjust the rate based upon loan to value or credit score. You will find the FHA has very reasonable underwriting guidelines for cash out refinancing.
We have helped many clients borrow up to 85% of the appraised value of their homes and use the funds to consolidate debts or to make home improvements and other purposes. Qualified borrowers will have to look hard to find lower rates and better terms than they can get on Florida FHA cash out refinance right now!
Call a mortgage professional today at 1-954-667-9110 or use our quick application to apply for an FHA refinance on your home in Sumter County or any of the other Florida counties we offer FHA mortgages in.
Although some conventional lenders in Florida shy away from making a loan on Mobile Homes or manufactured homes, many FHA mortgage loan lenders do not.
In fact, mobile homeowners fortunate enough to connect with a Florida mortgage lender, who is well schooled in how FHA loans work for mobiles and manufactured homes, can get a better interest rate, better terms, and a lower monthly payment by going FHA in nearly every case.
If you're shopping for financing to buy a mobile or manufactured home on land in Sumter County or any of the other 66 counties in Florida that we serve, call 1-954-667-9110 and let us give you a quote for an FHA mortgage loan to purchase your mobile or manufactured home.
It only takes a few minutes to get an FHA loan mortgage quote on your Florida mobile home. We'll wager that the savings on your monthly mortgage payments will make it some of the highest paid work you've ever done.
Few people realize that the FHA loan uses the same underwriting criteria for single and double wide mobile homes and manufactured housing as it does for traditional site built block or stick homes. In addition, FHA is one of the very few programs that can offer up to 97% financing on mobile homes on land. In addition, did you know that the seller can contribute up 6% toward your closing costs on an FHA mobile home loan and that down payment assistance can be used in Florida? It's true! You could package your mobile home financing to create a real no money down loan with unbelievably low rates.
Call 1-954-667-9110 or use our secure online quick application for a free no obligation quote on financing your manufactured or mobile home using an FHA mortgage loan.
The Department of Housing and Urban Development (HUD) sets forth these guidelines for determining if a mobile or manufactured home qualifies for an FHA mortgage loan in Florida:
- The mobile or manufactured home must be constructed in accordance with the Federal Manufactured Home Construction and Safety Standards. A red tag is attached to the rear of each section of homes that comply with the standards.
- The home must be taxed as real estate by the local tax assessor's office.
- The mobile or manufactured home must have been built after June 15, 1976.
- The mortgage must have a term of at least 30 years from when amortization begins.
- The mobile home or manufactured home must be on a permanent foundation.
- The axles and tongue must be removed from the mobile or manufactured home.
- The mobile home or manufactured home must have adequate skirting and insulation, and the crawl space must have adequate ventilation.
If you would like to determine if your mobile or manufactured home meets the guidelines for section 184 financing from FHA, call one of our Florida mortgage pros at 1-954-667-9110. We'll be glad to help you determine if the property that you are interested in can be used as collateral for an FHA mobile home mortgage.
This specialized FHA mortgage is for Florida homebuyers Â who wish to buy a home that needs repairs or renovations. Just as is the case with a conventional construction loan, a single FHA 203k loan covers both purchase of the Florida real estate and renovation. FHA 203K financing can be used to purchase a property on a site and move it to a new foundation on the mortgaged property and rehabilitate it.
In addition, Florida homeowners can also use a 203k FHA mortgage to refinance existing debt when they finance one or more home improvements using the FHA 203k mortgage program.
Many borrowers are finding out what a good deal a Florida FHA home loan really is. Call 1-954-667-9110 today or simply use our quick application to find out more!