FHA mortgages are often referred to as FTHB (first time home buyers loan); due to, the low down payment, credit score and debit ratio requirements. However, one does not need to be a first time home buyer to apply. You could potentially qualify for an FHA loan with a credit score as low as 580 with a down payment of only 3.5%. What is even better is that scores below 580 can still get approved and closed, but you will need a minimum of 10% down payment. FHA will not do scores below 500. Alligator Mortgage can work with the FHA’s minimum score of 500. Applicants can receive capital from family members1 , employer, or a close friend as a gift to cover the down payment and sellers can contribute up to 6% of the sales price in seller concessions to go towards your prepaids and closing cost.
With FHA we have to keep the loan amount within the FHA guidelines and presently in Alachua, Bradford, Columbia, Clay, Gilchrist, Levy, Marion, Union and many more counties the maximum loan amount is $420,680 for single family homes, 2 unit homes $538,650, 3 unit $651,050 and 4 unit $809,150. Call 352-264-0011 to find out what your county limits is in your county. In January 2023 these limits may be increased.
The Federal Housing Administration (FHA) aims to improve the housing market by insuring home loans made by approved home lenders. Home buyers are able to receive great rates and be able to qualify with less than ideal credit while lenders are protected from borrower default. FHA offers a number of different loan programs including options for refinances, purchases, and renovation projects which allows us to do single family homes(SFH), condos, townhomes, and manufactured (mobile homes – singlewide, doublewide, triplewide and quadwide) with land going back to June 15, 1976. Alligator Mortgage Company offers some of the best rates on FHA loans in Gainesville, Florida and service the following Florida counties Alachua , Baker, Bay, Bradford, Brevard, Broward, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, 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, Martin, Miami-Dade, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, Walton, Washington.
FHA Cash Out Refinance
FHA Cash out Refinance options are available to any homeowner, even if your present mortgage is not FHA. FHA limits cash out to 80% LTV on cash out refinance, but we can go to 96.5% LTV on a rate and term refinance. For rate and term – FHA has streamline refinance options available for homeowners who currently hold an FHA loan and have made 6 on time monthly payments. You do not need to verify income and get a new appraisal done. The loan lowers the interest rate and/or shortens the term. You do not even need to still live in the home; if you have moved out and turned the home into a rental property we can still do the loan. Closing costs and escrow cannot be refinanced into the loan. Florida FHA Loan Requirements
- Down Payment – 3.5% of the purchase is the minimum down payment available. A higher down payment may be needed depending on borrower credit score, credit profile and income. o
- Credit Score – A minimum credit score of 580 is needed to qualify for maximum financing. A score of 580 does not guarantee approval though. Those with lower credit score down to 580 may be qualified with 10% down payment.
- Debt to Income Requirements – A debt to income ratio of 31%/43% is generally needed if your credit score is under 620. A higher ratio all the way up to 56.9% may be approved if the credit score is at least 620. o Property Requirements – All properties must meet certain security, safety, and structural integrity requirements. We can do single family houses, manufactured (mobile – singlewide, doublewide, triplewide and quadwide) homes with land, townhouses and FHA approved condos.
- Our lenders do not have inspection requirements like wdo, water and septic unless the appraiser sees something to ask for one. On manufactured, engineering will always be required. o
- Seller can help pay up to 6% of the sales price towards buyer closing costs and prepaids.
FHA is a great loan program and not just for first time homebuyers. FHA is great for lower credit scores, thinner credit, higher ratios, lower cash to close. Contact a loan officer at Alligator Mortgage 352-264-011 today for more information on Florida FHA loans or to begin the prequalification process. 1 For purposes of obtaining Gift Funds then Family Member is defined by HUD and FHA as follows, regardless of actual or perceived sexual orientation, gender identity, or legal marital status:
- child, parent, or grandparent; a child is defined as a son, stepson, daughter, or stepdaughter; a parent or grandparent includes a step-parent/grandparent or foster parent/grandparent; •
- spouse or domestic partner; •
- legally adopted son or daughter, including a child who is placed with the Borrower by an authorized agency for legal adoption;
- foster child;
- brother, stepbrother; • sister, stepsister;
- son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law of the Borrower.