FHA Home Loans In Florida
FHA Home Loans In Florida
What is an FHA Home Loan?
FHA mortgages are insured by the Government, specifically the Federal Housing Administration (FHA). These types of mortgages are available to homebuyers who may have lower credit scores or be interested in making smaller down payments than on typical conventional purchase loans or JUMBO loans.
Because of the less strict approval requirements needed to secure FHA financing, FHA loans are very popular with younger or first-time homebuyers (over 80 percent of FHA loans in 2020 were taken out by first-time homebuyers). Even though the FHA is a government entity and insures these loans, the loans themselves are actually provided by third-party mortgage lenders like us here at Leopard Lending SI.
Think an FHA loan for a new home purchase in Florida is the right type of mortgage for you? Contact us today to see what level of FHA financing you’re eligible for.
FAQ's About FHA Loans
FHA Loan VS. Conventional
Both conventional and FHA loans are available to first-time homebuyers. There is a common misconception that conventional loans are only offered to those who have purchased homes before, but they’re available to everybody. With that said, FHA loans in Florida are incredibly appealing to first-time homebuyers because of the government-backed insurance and lower requirements for approval. Here are some of the key differences to keep in mind:
FHA
Insured by Federal Housing Administration
Require a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher
Debt-to-income (DTI) ratio must be 50% or less to qualify
Mortgage insurance is required regardless of down payment amount
Conventional
Not insured by a Government entity
May allow as low as a 3% down payment, but only for applicants with credit scores in the high 600s+, with significant income and savings
DTIs of 43% or less in most approval cases
Borrowers are required to pay for mortgage insurance if their down payment is less than 20%
How to Get an FHA Home Loan in Florida
We’ll need to take a comprehensive look at your financial situation to determine what type of loans and terms you’re eligible for so you can purchase your new home in Florida. Our team at Leopard Lending SI will ask you to provide us with your proof of income and other financial documents. You will need to be able to put down at least 3.5% towards the home, have a minimum credit score of 580, and a DTI of less than 50% percent.
Is down payment assistance available for an FHA Mortgage?
The FHA itself does not offer any sort of down payment assistance. However, there are available down payment assistance programs from third-party lenders that can help alleviate the cost of your FHA loan down payment.
How do I get pre-approved for an FHA loan?
According to the FHA’s pre-qualification requirements, you’ll need to demonstrate:
Consistent employment history with at least two years of steady employment from the same employer.
Stable income (proof that you can make payments)
Solid credit over the last two to three years
No bankruptcy reports on record within the last two years
No foreclosures within last three years
And more
Want help getting pre-approved for an FHA loan so you can get started on scouring Florida for a new home?
Contact us today to get started.
What are the options to refinance an FHA mortgage?
If you’re already financing your home through an FHA mortgage, there are definitely some options available to you for refinancing. Make sure to always consult with mortgage professionals like us before making big financial decisions such as home refinancing.
You may be eligible to qualify for:
Simple refinancing — a new FHA loan that replaces your existing loan, but with different loan terms such as interest rate or length. This process requires a property appraisal.
Streamlined financing — similar to simple refinancing, but this does not require an appraisal of your home or a credit check. It’s a bit faster and saves applicants some money in the process.
Want to apply for an FHA loan? Get in touch with our team of Florida-based FHA loan experts to see what next steps you need to take to qualify for your new home loan.
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License Info
FL NMLS: #LO115222
AZ NMLS: #1019689
Groves Capital Inc. NMLS: #1678775
Licensed In: FL, AZ
For licensing information, go to NMLS Consumer Access Portal
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License Info
FL NMLS: #LO115222
AZ NMLS: #1019689
Groves Capital Inc. NMLS: #1678775
Licensed In: FL, AZ
For licensing information, go to NMLS Consumer Access Portal