Qualifying For Florida FHA Loan With Bad Credit And No Overlays

This BLOG On Qualifying For Florida FHA Loan With Bad Credit And No Overlays Was UPDATED On June 27, 2017

Home Buyers can now qualify for Florida FHA Loan With Bad Credit And Low Credit Scores. HUD, the parent of FHA, has very lenient FHA Guidelines for borrowers with bad credit and lower credit scores.

Here are Florida FHA Loan Requirements:

  • Minimum credit score requirement of 580 to qualify for 3.5% down payment Florida FHA Loan
  • Home buyers with credit scores under 580 and down to 500 FICO can qualify for FHA Loans with 10% down payment
  • Outstanding collection and charge offs do not have to be paid off to qualify for FHA Loans

Does Down Payment Assistance Program Work?

Home Buyers looking to buy a home can also explore Down Payment Assistance (DPA) programs.

  • Most Down Payment Assistant Programs require a lot of red tape. DPA are normally loans and need to get paid back once the homeowner sells their home.  
  • Down Payment Assistance Programs can help home buyers with the down payment on FHA Loans but there are approval rate on DPA is not too high.
  • The Gustan Cho Team are licensed in multiple states and can help home buyers with advice in getting qualified for FHA loan programs and DPA.
  • Although the funding for such programs are limited, it’s still possible for home buyers to qualify for and obtain the needed help.
  • However, home buyers shouldn’t wait until it’s too late and the money has gone dry.

Why are Florida FHA Loan necessary for mortgage DPA in FL?

You see, things didn’t exactly pan out as anticipated by the FHA (Federal Housing Administration) and the HUD (Department of Housing and Urban Development) when the programs were brought to the table for homeowners. This was because many of the homeowners who did qualify defaulted on their mortgage loans.

One integral aspect of qualifying to receive mortgage DPA in Florida (or any state for that matter) is that you have to obtain a Florida FHA loan (or your respective state), which means it is a mortgage loan that is also insured by the FHA. Because of this, all of those defaulted FHA loans and debt fell on the FHA.

So Can I Still Get a Florida FHA loan and enroll in a mortgage DPA program in FL?

The reality is that after the circumstances the administration was left with, they re-evaluated how much funding would be available and really considered whether offering the assistance was generally good for the country and economies – from federal to local levels. However, there still are programs and funds available in Florida. This is why you should try to obtain your Florida FHA loan as soon as possible.

Besides a Florida FHA loan what else do I need to get my DPA?

Besides obtaining a Florida FHA loan what other requirements are needed to qualify when you apply?

  1. Your chances will increase tremendously if you are buying for the first time
  2. Having an income that is not any greater than 80 percent of your area’s median income level
  3. You will be given a minimum FICO score requirement
  4. Lastly, you also need to be an owner-occupier, meaning that you are the actually individual to reside in the purchased home

2017 Update

This mortgage blog post has been updated on June 27, 2017.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

Comments are closed.