Not all Florida borrowers meet the eligibility requirements for the USDA loan. Maybe you are looking to purchase a home in a more populated location like Tampa, Orlando, Miami that is not approved. Or maybe your household income is over the limit in place for USDA. If that is the case, the FHA mortgage may provide a great alternative.
Government-backed FHA loans have been helping home loan applicants become homeowners for 80 years. FHA announced a set of policy changes to strengthen the FHA. The changes announced are the latest in a series of changes to better position the FHA to manage losses while continuing to support the nation’s housing market recovery.
Most Florida FHA lenders require a minimum credit score of 620 to be approved for financing. FHA allows a homebuyer to make a down payment of just 3.5% and a seller contribution of up to 6% for closing costs! In addition, the required down payment can be gifted to the borrower from family, etc. First time home buyer with credit scores below 620 must make a minimum 10.0% down payment of the purchase price and a seller concession of up to 6% to pay for closing cost is allowed. This traditional FHA mortgage is great for first time homebuyers looking to maximize their savings by minimizing their down-payment because FHA only requires 3.5% down with home financing to 96.5% loan to value.
Popular FHA purchase programs:
- 203(b) FHA purchase program provides mortgages for homebuyers to purchase a principal residence with a low down payment and with lower credit standards.
- 203(k) FHA purchase program is for the rehabilitation (rehab) and repair of single family properties. Providing both the financing to purchase a property and the financing to make repairs. The program offers an important tool for expanding homeownership opportunities.
FHA Refinance Options:
Homeowners that currently have an FHA loan and want to refinance can learn more about the variety of refinancing options available today in Florida. Interest rates a very low in 2020!
FHA Streamline Refinance – This FHA loan is an exclusive offer to existing FHA borrowers who seeks a rate and term refinance to lower the mortgage payment or improve the lending terms. The FHA Streamline is designed to lower the interest rate on a current FHA mortgage or convert a current FHA adjustable rate mortgage into a fixed rate. A Streamline FHA Refinance Loan can be performed very quick and easy .. or “streamlined” It typically requires less red tape than a normal refinance and sometimes no appraisal, qualifying debt ratios or income verification.
FHA Cash Out Refinance – The FHA 203B loan is a refinance mortgage that FHA offers for refinancing 1st and 2nd mortgages into one loan up to 85% loan to value. This cash-out refinance loan enables homeowners to consolidate debt and loans at a very low interest rate.
FHA Rehabilitation – The 203K mortgage is a unique loan because it provides funds for home improvement up to 115% loan to value. This has become a very popular financing tool with people who buy a foreclosed home that needs additional funds for home rehabilitation.
FHA Secure Refinance – The 203S loan was a refinance product that was created a few years ago for distressed homeowners that were struggling with the rising rates from an ARM. With FHA Secure refinancing, borrowers can be delinquent on their mortgage payment but must have no mortgage payments reported late prior to the interest rate resetting and adjusting.