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FHA LOAN GUIDELINES

Important FHA Guidelines for Borrowers

Important FHA Guidelines for Borrowers

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Learn more about FHA loan requirements and guidelines.

 

Documentation Checklist 
Before you start the loan process, you'll want to be prepared for the loan application. Have your information organized and ready for your loan officer. 

 

FHA Debt Ratios

In order to prevent homebuyers from getting into a home they cannot afford, FHA guidelines have been set in place requiring borrowers and/or their spouse to qualify according to set debt to income ratios.

 

FHA Loan Limits Florida
FHA lending limits vary based on a housing types and county in which the property is located.

FHA Credit History
An FHA loan applicant's past credit performance that demonstrates good credit history and a solid track record of timely payments will likely be eligible for the mortgage.

FHA Mortgage Insurance
FHA insured loans require mortgage insurance to protect lenders against losses that result from defaults on home mortgages.  

FHA Closing Costs
While FHA defines which closing costs are allowable as charges to the borrower, the specific costs and amounts that are deemed reasonable and customary are determined by each local FHA office.

 

FHA is one of the most popular loan options because it provides a more lenient credit and income requirements than other mortgages. Also, FHA Loans are guaranteed by the federal government and easier to qualify for than a conventional loan.  FHA loans allow for lower credit scores than conventional loans and, in some cases, lower monthly mortgage insurance payments

Advantages of FHA Loans

  • You can qualify with a lower credit score compared to other loans.

  • You can buy a home with a down payment as low as 3.5%.

  • You may qualify even if you’ve had financial difficulties in the past, like a bankruptcy.

  • If you already have an FHA loan, you can refinance with FHA Streamline to lower your interest rate.

  • You offer lender credits to pay for your closing costs for both purchase and refinance 

The Benefits of Getting an  FHA Loan from 1st Florida Lending 

  • We are FHA-approved lender and process FHA loans every day.

  • Our process is completely digital  which means saves time with paperwork.

  • We have FHA Loan experts available to help you understand whether an FHA loan is the right Load for you.

  • We offer great customer service which continues after you close.

How FHA Loans Work

  • You get an FHA loan from an FHA-approved mortgage lender.

  • The loan is insured by the Federal Housing Administration.

  • Because of that insurance, the credit and income requirements for an FHA loan are more lenient.

  • To help fund the FHA program, in most cases you’ll pay mortgage insurance, which is added on to your monthly payment.

  • The home you want to buy will have to meet the FHA’s minimum property standards.

 

WE OFFER THREE (3) FHA LOAN PROGRAMS

 

PROGRAM 1. THE STANDARD FHA LOAN WITH 3.5% DOWN PAYMENT OF THE PURCHASE PRICE FOR A PRIMARY HOME. REFINANCING  IS AVAILABLE!

 

  • Min Loan $125,000 up to FHA Loan Limits

  • 580 FICO 3.5% Down Payment

  • No tradelines required

  • 550 FICO up to 5% Down Payment

  • 500 to 550 10% Down Payment

  • Terms 30yr / 25yr /15yr Fixed

  • Two Year Tax Returns

  • W-2 & Paystubs only - OK

  • Manufactured Homes OK

  • Self-Employed Borrowers OK

  • DACA / Dreamers OK

 

 

PROGRAM 2. DOWN PAYMENT ASSISTANCE FOR FIRST TIME HOME BUYERS

 

Q. How Does Down Payment Assistance Work?

 

  • Down payment assistance programs work by helping first-time home buyers purchase homes with little or none of their own money or down payment.  

  • Down payment assistance programs are administered on the federal, state, and local levels. Federal DPA programs include first-time home buyer tax credits, cash grants to buy homes, and interest rate subsidies for higher home affordability.

  • Most DPA programs, though, are administered by state and local governments, and by private entities and charitable organizations. Non-federal programs may require buyers to use specific mortgage loan types such as FHA loans; and, may require additional paperwork not associated with the mortgage application. 

  • Down payment assistance is sometimes paid as cash at closing or before. Other times, they’re awarded as forgivable loans and paid at the time of closing.

 

Q. How many types of down payment assistance programs are there?

 

The programs available for down payment assistance generally fall into one of three categories as briefly define below.

 

  • Grants: A grant is free money that you can put toward your home purchase. It doesn’t have to bepaid back.

  • Forgivable loans: Forgivable loans are loans that won’t have to be paid back as long as you meet certain conditions defined by the assistance program. A lien is placed on your home, but it’s removed once the loan is either forgiven or paid back.

  • Deferred payment loan: A deferred payment loan is one that must be repaid, but not right away. You pay it back at some point down the line. This isn’t always the case, but they often come at 0% interest. Again, a lien is placed on your home until repayment.

 

HIGHLIGHTS

  • Primary Home Purchase only

  • No Investment Properties

  • Manufactured Homes Eligible

  • Must be a First Time Home Buyer

  • Online DPA counseling required

  • Seller credits up to 6% 

  • No Reserve Requirements

  • Fast Approvals

 

PROGRAM 3. MAX FHA PROGRAM - ZERO DOWN PAYMENT

 

ZERO DOWN PAYMENT MAX FHA LOAN is a No Down Payment Assistance Program helps Non-First Time Borrowers obtain a 100% CLTV (Combined loan-to-value ratio) or  No Down Payment and you DO NOT HAVE TO BE  a FIRST-TIME HOME BUYER!

 

How Does Down MAX FHA WORK?

Down payment assistance programs work by helping first-time home buyers purchase homes with little or none of their own money or down payment.  

 

MAX FHA LOAN is a down payment assistance program that helps non-first-time borrowers obtain a 100% CLTV (Combined loan-to-value ratio) or ZERO DOWN PAYMENT

 

HIGHLIGHTS

  • 100% CLTV FHA Loan (Combines 1st and Subordinate Lien)

    • 2nd lien with an interest rate 2% greater than 1st lien

    • Payment amortized over 10 years

  • Monthly payments required

  • 600 Minimum FICO

  • Borrower’s minimum contribution of $0.00

  • PRIMARY HOME PURCHASE ONLY

  • You do not have to be a first time home buyer! 

  • Loan amount to Conforming limits

 

 

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