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FHA loans Florida

The FHA home loan makes the path to homeownership much easier for Floridians, especially people with lower credit scores and down payments. District Lending provides Florida FHA loans with excellent terms and fast closing times, helping you fulfill your dream faster.
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In Florida, the average median home price is $402,500, a 2.8% year-on-year increase. Experts forecast that in 2024, the low availability will increase the median sale price. The predictions are that national house prices will rise 2.9% in 2024, so most buyers will need to use loans to buy a single-family home, especially given the average yearly salary of $59,198.

Whether you’re a first-time buyer hoping to move into a new property or looking at condos, townhomes, or manufactured homes on a permanent foundation, District Lending will help you get there.

Florida FHA Loan

FHA (Federal Housing Administration) loans are a favorite alternative for many homeowners in Florida because of their low down payment requirements and flexible credit score standards. These loans help first-time homebuyers and those with low funds realize their dream of homeownership. Whether you want to purchase a home in Tampa, Miami, Orlando, or elsewhere, FHA loans provide a practical path to home ownership.
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Florida FHA Mortgage Loan Requirements

Applicants must fulfill certain requirements to be approved for an FHA (Federal Housing Administration) loan in Florida. Here are the main requirements in more detail:
  • Credit Score

    For potential applicants, improving their credit and maintaining a solid payment history are crucial first steps. While the average credit score in Florida is 680, it’s still lower than the national average, meaning more residents may need the help of FHA loans.

    Applicants can often make the 3.5% minimum down payment if their score is 580 or above. For applicants with scores between 500 and 579, the down payment minimum is 10%. It’s important to remember that these are the minimum standards and that lenders might have extra requirements.

  • Down Payments

    In Florida, FHA loan down payments are quite accessible. Although the state’s basic standards are the same, prospective homeowners should be aware of county-specific programs that could provide further support. At just 3.5%, borrowers with credit scores of 580 or higher are eligible to apply.

    Individuals with credit scores ranging from 500 to 579 must provide a 10% down payment. While FHA loans offer lower down payments, conventional mortgages may be preferable for borrowers with higher credit scores looking to avoid private mortgage insurance.

  • Personal Finances

    Effective personal money management is very important to obtaining a Florida FHA loan. Lenders will carefully examine your credit history. They will also look at your monthly debt payments to determine your debt-to-income ratio or DTI, which cannot be higher than 57%, although most lenders have it capped closer to 40%.

    While Florida FHA loans require proof of regular income, no maximum or minimum income requirements exist. They are also convenient for self-employed borrowers. To demonstrate financial stability, applicants must submit tax returns from the past two years to confirm their income and work history.

  • Closing Costs

    When using an FHA loan to buy a property in Florida, closing fees are a crucial consideration. These fees cover a range of charges, such as appraisal fees, title insurance, and legal fees, usually amounting to 2% to 6% of the purchase price. Additionally, sellers can lessen the buyer’s closing costs by contributing up to 6% of the home’s price with FHA loans, relieving some of the buyer’s financial strain.

  • Real Estate Market

    As of December 31, 2023, the average home value in Florida is $389,325. In 2024, prices in places like Hendry County’s Clewiston and Hardee County’s Wauchula are expected to rise significantly. Florida will need over 500,000 homes, according to the FAA, as it’s expected to receive 849 new residents every day on average by 2026.

    It will remain a competitive market, meaning your lender will need to close the loan quickly so your dream home doesn’t get sold to another buyer who can close faster. At the same time, the real estate in the county you choose will decide the upper FHA mortgage limit, meaning you may not be able to get the home you want if it’s costlier than that.

Florida FHA Loan Limits

Borrowers should be aware of Florida FHA loan requirements, as they directly impact the range of prices at which they can consider buying a property with an FHA loan. The maximum amount that can be borrowed in a given location with an FHA loan is the FHA Loan Limit.

The Department of Housing and Urban Development (HUD) sets these caps, which differ by county depending on the cost of housing in that area. Periodically, they are updated to consider modifications to the real estate market.

The property needs to be the primary residence and evaluated by an FHA-approved appraiser.
  • Credit Score

    Your credit score affects the maximum amount of a Florida FHA loan that you can be approved for. The minimum credit score to qualify for an FHA loan is 500, much lower than the average of 620 for conventional loans.

    Larger loan amounts may be available to borrowers with higher scores, indicating a reduced risk to lenders. To optimize your borrowing ability under FHA guidelines, aim for a score of 580 or above.

    Quick Pre-Qualification with District Lending

    District Lending’s fast pre-qualification procedure will help you determine the maximum amount of an FHA loan you may qualify for. This stage will also help you in the process of house hunting, as sellers may be more interested in negotiating. Also, you will have a better idea of the price range you can look at as you learn more about your financial possibilities straight from your mortgage lender.

  • Down Payment Requirements

    Although most borrowers need a down payment of at least 3.5%, the precise amount you put down can affect the total loan amount you qualify for and the kind of properties you can afford. A conventional loan would require a down payment of around 20% of the buying price of the home compared to a Florida FHA-qualified borrower with a 3.5% down payment.

    Payment Assistance Programs in Florida

    A range of payment assistance programs are available in Florida to assist veterans, first responders, and first-time homebuyers in achieving homeownership. Residents can access the Florida First and Military Heroes Government Loan Program through organizations such as the Florida Housing Finance Corporation, which assists with closing fees and down payments. These are some of the programs you can use:

    • The First-Time Homebuyer Program from Florida Housing

    • Florida Assist (FL Assist)

    • The Homebuyer Loan Program (HLP)

    • Florida Housing Mortgage Credit Certificate Program (MCC)

    • The Hardest Hit Fund Down Payment Help (HHF-DPA)

    • Community Development Block Grants (CDBG)

    • The SHIP, or State Housing Initiatives Partnership Program

    • HOME Investment Partnerships Program administered by HUD

  • Mortgage Insurance

    FHA mortgage insurance is a requirement for FHA loans in Florida. It shields lenders from losses if a borrower defaults. It consists of a yearly premium that varies based on the loan size, term, initial loan-to-value ratio (LTV), and an upfront mortgage insurance premium (UFMIP).

    Mortgage insurance premiums are usually necessary for the duration of an FHA loan, which affects the total cost and possible refinancing options for borrowers with an existing FHA loan. However, you do not need private mortgage insurance for FHA loans.

  • FHA Loan Limits

    Florida’s varied real estate environment is reflected in its counties’ wide variations in FHA loan limitations. The limitations are higher in affluent counties like Miami-Dade and Broward to account for the higher price of urban real estate.

    Some of the maximum FHA home loan limits for single homes in different Florida counties look like this:

    • Gainesville, Alachua County $498,257

    • Jacksonville, Baker County $564,650

    • Panama City, Bay County $498,257

    • Miami, Fort Lauderdale, and Pompano Beach, Broward County $621,000

How District Lending Can Help

District Lending is an expert at negotiating the nuances of FHA loans in Florida and provides individualized advice based on your specific needs. Our team ensures you are informed at every stage, from helping you understand your chosen county’s unique FHA loan restrictions to providing assistance with mortgage insurance specifics.

Our knowledge of nearby down payment aid programs could boost your purchase options. With District Lending, you get a partner who is dedicated to helping you take full advantage of Florida’s FHA loan opportunities and find the most suitable way to homeownership.

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Buy
Home Purchase
Why District
Read about all the benefits
Process overview
Simplified and easy to understand
Apply now
Start your application
Get a quote
See your rate with no commitment
Perks
Free refinance for 3 years
Refinance with no closing costs
No closing costs
Zero costs options, what it means
Realtor credits
Get .5% towards your closing costs
18 Day closing
2X more likely to get your offer accepted
Price match guarantee
We beat competitors’ rates by .125% or more
Rate defense
Never miss out on rates dropping
Refinance
Rates
About
Reviews
Hear from our customers
Contact
Answers within 2 business hours
Meet the crew
Our experts, mission, and values
Careers
Join us in making a difference
Learn
Blog
Our knowledge at your convenience
Mortgage secrets
Short videos with tips&tricks
Video library
A short description can be here
Calculator
Calculate your mortgage payment
Apply nowGet a quote