Are you thrilled about the possibility of applying for an FHA loan in Florida? Here are the essential details you need to know – from the maximum loan amount to the down payment, guidelines, and everything in between.
For this year, 2022, the FHA loan limit for a one-family home in most Florida counties is set at $420,680 with a minimum down payment of 3.5% of the value or purchase price of the property. Before you get excited, the 3.5% down payment is for those with at least a 580 credit score. Don’t be discouraged if you fall below that score because, at a 500-579 credit score, you can still qualify for a 10% down payment.
Acceptable down payments are monies that came from your savings, a gift from a family member, or if you are a first-time home buyer, you might be able to qualify for a grant offered by a private organization or a government agency. When applying for an FHA loan in Florida, they will still evaluate your overall credit history to fit the FHA approval guidelines.
When it comes to income and employment requirements, you need to prove that you have been employed for the past two years by showing your pay stubs, W2s, and tax returns. FHA loans are less stringent compared to conventional loans.
FHA loans must be used to finance your primary residence and should be occupied by the owner and not rented out to somebody else. Detached and semi-detached houses, condominiums, rowhouses, and condo projects approved by the FHA are all eligible for financing. Homes need to be appraised by an FHA- approved appraiser, and when the house doesn’t meet the minimum standards, the buyer must finance the repair at the closing unless the seller agrees to pay for the required repairs. For a more detailed list of requirements, let us know how we can help you.