| Florida FHA home loan MINIMUM CREDIT SCORE | | | | insurance payment history, utility bills, etc. |
| = 530 | | | | Included credit obligations: Any installment loan (e.g. |
| FHA guarantees "eligible" Florida loan applicants the | | | | student loans, car loans, etc.) with less than 10 months |
| ability to obtain Florida mortgages with No money or | | | | remaining does not need to be included when qualifying |
| Little money down .FHA loans feature low down | | | | for a FHA home loan. However, consideration is |
| payments and flexible guidelines to make it easier to | | | | given to a large debt of over $100 a month, regardless |
| for Florida homebuyers to qualify! FHA loans are | | | | of the number of months remaining. Furthermore, |
| popular with Florida first time home buyers but they | | | | payments on auto leases with less than 10 months |
| can be equally attractive to Florida move-up buyers | | | | must be included in the qualifying ratios. The minimum |
| and Florida homeowners looking for a home | | | | payment on all revolving accounts (i.e. credit cards) is |
| improvement loan. With an FHA loan you can borrow | | | | also factored in. If the borrower has an open |
| up to 97% of the purchase price of the Florida home. | | | | revolving account without a balance, $10 per open |
| Please keep in mind that the FHA home loan will be | | | | account should be included when qualifying. Any loan |
| based on the homes purchase price or the appraised | | | | where the borrower has co-signed for another party is |
| value. | | | | included with their debts unless the borrower can |
| Florida FHA home buyers should know the many | | | | prove that the the other party has made the |
| advantages of the FHA mortgage loan programs. | | | | payments on their own for a minimum of 12 months. |
| FHA loans were created to help increase Florida | | | | Chapter 7 Bankruptcy: FHA requires a minimum of 2 |
| home ownership. For the Florida home buyer the FHA | | | | years since the discharge of the bankruptcy. An |
| program can simplify the purchase of a home, making | | | | explanation of the bankruptcy will be required. |
| financing easier and less expensive than a | | | | Furthermore, the borrower should have re-established |
| conventional mortgage loan product. Some highlights of | | | | credit (i.e. secured credit card) with no late |
| the Florida FHA loan program include: | | | | payments. |
| - Minimal Down Payment and Closing costs. | | | | Chapter 13 Bankruptcy: FHA will consider a borrower |
| - Down payment less than 3% of Sales Price Gifts | | | | still paying on a Chapter 13 bankruptcy if the payments |
| are allowed | | | | to the court have been made for a minimum of 1 year |
| - Seller can credit up to 6% of sales price towards | | | | in a satisfactory manner (as verified with the courts) |
| closing and prepaid costs. | | | | and with the approval of the court trustee. |
| - 100% Financing available | | | | Federal Debts: A Florida mortgage applicant is not |
| - No reserves required. | | | | eligible for a FHA loan if he/she is delinquent or in |
| - FHA regulated closing costs. | | | | default on any federal debt (such as a HUD or VA |
| - Easier Credit Qualifying Guidelines such as: | | | | mortgage, student loans, SBA loans or a tax lien |
| - No minimum FICO score or credit score | | | | against his/her property). Borrowers can become |
| requirements. | | | | eligible by bringing any delinquent accounts current, |
| - FHA will allow a home purchase 1 year after a | | | | making satisfactory repayment arrangements with the |
| Bankruptcy. | | | | creditor (generally a 3 month history will be required), or |
| - FHA will allow a home purchase2 years after a | | | | paying the account in full. |
| Foreclosure. | | | | Judgments: Judgments must be paid or have 12 |
| To take advantage of the FHA program in Florida, | | | | months of arranged payment history |
| give us a call 1-800-570-0448 or use our quick | | | | Collection Accounts: Collections do not need to be |
| application to find out more about the many FL | | | | paid (LOX) needed |
| mortgage programs we can make available. Or Apply | | | | Foreclosure: A borrower who has had a property |
| now for a FL FHA home loan. | | | | foreclosed upon, or who has given a deed-in-lieu of |
| When analyzing a Florida mortgage applicant credit | | | | foreclosure within the previous 3 years, is generally not |
| report, it is important to focus upon the general pattern | | | | eligible for a FHA home loan. However, if it was the |
| of credit behavior rather than isolated occurrences of | | | | result of extenuating circumstances beyond the |
| late payments. Often times, Florida mortgage | | | | borrower's control (such as the death of a spouse, |
| applicants will experience a period of financial difficulty | | | | loss of employment, or serious long-term illness, etc.) |
| in the past and does not necessarily translate into an | | | | and the borrower has since re-established good credit, |
| unacceptable risk. Reasonable explanations of the | | | | an exception may be granted. However, extenuating |
| credit derogatory and evidence of offsetting factors | | | | circumstances do not include the inability to sell a |
| (such as a new job or promotion with greater stability | | | | house when transferring from one area to another. |
| and pay, for example) will be necessary. All | | | | Non-purchasing Spouse: If a married borrower is |
| derogatory credit information must be explained, in | | | | purchasing a property by himself/herself, the credit |
| writing, by the borrower. | | | | obligations of the spouse must be included with the |
| The following is a brief synopsis of the credit | | | | application and will be factored in with the borrower's |
| underwriting guidelines for FHA mortgage loans: | | | | credit obligations and used to determine the financial |
| Lack of credit history: If a Florida mortgage applicant | | | | capacity of the borrower. Furthermore, the |
| does not have a minimum of 3 trade lines on their | | | | non-purchasing spouse may be required to sign a |
| credit report, alternative forms of credit may be | | | | security instrument or documentation relinquishing all |
| used. This would include items such as auto | | | | rights to the property. |