FHA Home Buyer Loans in Florida
Homeownership has always been an essential part of the American Dream. For many Americans, however, this dream has seemed unattainable. If you are a first-time homebuyer or are worried about traditional credit score requirements, an FHA loan may be for you. Unsure of how to apply, talk to one of the qualified professionals at Dynamic Funding today.
Florida FHA Loans
In addition to the benefits traditionally associated with FHA loans, some Florida municipalities have local first-time homebuyer programs that assist with down payments, closing costs, or other loan requirements. As of the time of this writing, the following local government programs have been adopted:
City of Orlando First-Time Homebuyer Program
City of St. Petersburg First-Time Homebuyer Program
City of St. Petersburg Purchase Assistance Program
Duval County Home Sweet Home Program
Miami First Time Homebuyer Program
Tallahassee Lenders’ Consortium First-Time Homebuyer Program
The details of these programs may vary. Talk to one of our FHA home loan specialists today.
What Is an FHA Loan?
The Federal Housing Administration, commonly known as the FHA, is a division of the United States Department of Housing and Urban Development. Among their many services is the FHA Loan program. This program helps over one million first-time and low-income families purchase homes every year. An FHA loan does not actually involve borrowing money from the federal government. Instead, the Federal Housing Administration insures loans issued by approved commercial lenders.
FHA Loan Down Payment Requirements
One of the primary benefits of an FHA loan is the lower down payment requirement as compared to conventional mortgage loans. Generally, the absolute minimum down payment allowable for an FHA mortgage loan is 3.5%. To obtain this rate, a borrower must have a credit score of 580 or higher.
As FHA loans are also aimed to assist applicants with lower credit scores, there are other options. Applicants with a credit score between 500 and 579 will need to make a down payment of at least 10% of the purchase price.
How does an FHA Loan work?
In many respects, the process for obtaining an FHA-approved mortgage loan is substantially similar to the process for conventional mortgage loans. In fact, the FHA is merely insuring the mortgage. The mortgage loan itself is issued by a traditional lender such as a bank or a mortgage company. To qualify, applicants must meet, at least, the following qualifications:
Minimum credit scores;
The mortgage must be for a one to four-unit home and it must be used as the borrower’s primary residence;
The borrower must meet the debt-to-income ratio;
Applicant must occupy home within 60 days of closing;
Property must meet property standards as demonstrated by an inspection report.
FHA Loan Limits
One limitation of the program is that an FHA loan limit is in place for every county in the United States. These limits create maximum loan amounts for one, two, three, and four-unit homes. In Florida, the baseline limits are:
- One unit: $420,680
- Two units: $538,650
- Three units: $651,050
- Four units: $809,150
These baseline limits are applicable in the following counties: Aluchua, Bay, Bradford,
Brevard, Calhoun, Charlotte, Citrus, Columbia, Desoto, Dixie, Escambia, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Indian River, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Okeechobee, Orange, Osceola, Pasco, Pinellas, Polk, Santa Rosa, Sarasota, Seminole, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, and Washington.
Other Florida counties have higher limits due to the higher cost of real estate. The remaining county limits are as follows:
- One unit $431,250
- Two units $552,050
- Three units $667,350
- Four units $829,350
These limits apply in Martin and St. Lucie counties.
- One unit $432,400
- Two units $553,550
- Three units $669,100
- Four units $831,550
These limits apply in Baker, Clay, Duval, Nassau, and St. John’s county.
- One unit $460,000
- Two units $588,850
- Three units $711,800
- Four units $884,600
These limits apply in Broward, Miami-Dade, and Palm Beach counties.
- One unit $539,350
- Two units $690,450
- Three units $834,600
- Four units $1,037,200
These limits apply in Okaloosa and Walton counties.
- One unit $552,000
- Two units $706,650
- Three units $854,200
- Four units $1,061,550
These limits apply in Collier county.
- One unit $710,700
- Two units $909,800
- Three units $1,099,750
- Four units $1,366,750
These limits apply in Monroe county.
To determine which options are right for your situation, reach out to the customer service specialists at Dynamic Funding today. Homebuyers will receive everything they need to know about FHA loans in Florida and how these federal government programs can help your family become homebuyers. We will help you find the right FHA loan in Florida with the right mortgage payments for your situation. Our Florida FHA loan calculator can determine exactly how much house you can afford. Call us today at (215) 364-7171 and we will help you begin the process to apply for an FHA loan in Florida.