The Federal Housing Administration (FHA) insures your FHA mortgage when you take out an FHA loan. If you default your mortgage payments, the loan is covered by the government, representing a lower risk for your lender, causing it to be more flexible regarding your credit score and reducing the down payment. FHA loans are the prime choice for first-time property buyers.
FHA loans have lower interest rates than conventional loans because FHA loans are safer for lenders. However, you must pay mortgage insurance in addition to your mortgage payment. With a small down-payment or a low credit score, the lower interest rates outweigh the higher cost of mortgage insurance. FHA loans are used for refinancing, debt consolidation, or home renovation.
The FHA loans are meant to be used only to purchase houses, condos, flats, or any primary residence, not second homes or vacation residences.
FHA Loan Limits in Miami-Dade County are $420,680 for one living-unit home up to $809,150 for four living units in Low-Cost areas.
Contact Us Invest Financial to learn more about FHA loans for Broward, Monroe, and West Palm Beach, or visit the FHA website to find out the maximum amount in your County.
The minimum credit score to receive an FHA loan is 500. For scores ranging from 500 to 579, a 10% down payment is required. Those with credit scores of 580 or higher can put just 3.5% down on their loan.
The higher your credit score, the better. That means at least 680 and preferably 700 or more. People with credit scores of 740+ get the best terms.
Please get in touch with one of Us Invest Financial if you don’t know your credit score or want to know what you can and must do to increase your credit score for free and get the best interest rates for your loan.
The consultation and the process to improve your credit are free.
It is easiest to qualify if your debt-to-income (DTI) ratio is 43-45% or lower.
This ratio means that the monthly mortgage plus all your monthly debts (credit cards, car payment, student loans, etc.) shouldn’t be more than 43% to 45% of your gross income to make it easier for you and your life.
You must provide documentation that confirms you have been steadily employed or worked for the same employer for the past two years.
Exceptions can be made if you change your employer but keep performing in the same line of work.
You must be two years out of bankruptcy or four years out of foreclosure and have re-established good credit.
Exceptions can be made if extenuating circumstances beyond your control caused the bankruptcy and you’ve responsibly managed your money.
An FHA loan is one of the most accessible mortgage loans to qualify for because it requires a low-down payment and less-than-perfect credit.
FHA loans can be assumable, which means you can sell your home if the buyer can “assume” the loan you have.
People with bad or low credit, bankruptcy, or who have been foreclosed may be able to qualify for an FHA loan. Ask Us Invest Financial on English or Español.
FHA mortgages opened the path to fast and affordable homeownership for first-time homebuyers without perfect credit or the ability to make a sizeable down payment in Miami-Dade, Broward, West Palm Beach, or Monroe.
Have questions or are ready to apply? Please call Us Invest Financial today to schedule your consultation.
Let’s get into your dream home in that beautiful neighborhood you always pass by in Weston, Pembroke Pines, Homestead, Fort Lauderdale, or elsewhere in South Florida with easy qualifications and competitive rates.
