Sample ImageHome buyers from Florida who need a small down payment or have a below-average credit score may be able to buy a house with an FHA loan in Treasure Coast, Florida. 

If you need down payment assistance, there are programs in Florida that you can check out.

We will guide you through the FHA loan requirements in Florida and inform you what credit score you’ll need to qualify.

What is an FHA Loan?

A Federal Housing Administration (FHA) loan, is a government-backed mortgage insured by the FHA and issued by a bank or other lenders that are approved by the agency. This type of loan requires a lower minimum down payment than most traditional loans, and borrowers with poor credit scores can apply for the loan.

The purpose of FHA loans is to help low- to moderate-income borrowers attain homeownership. This loan is popular among first-time homebuyers.

Florida FHA Down Payment Requirements

FHA loan’s down payment requirements are the same in all states. The minimum requirement for an FHA loan is 3.5% of the purchase price if you have a credit score of at least 580. If your credit score is less than 580, then the down payment requirement will be 10%.

If you can’t afford the down payment, you use gift funds from relatives.

FHA Loan Requirements in Florida

These are the current FHA loan requirements in Florida. If you want a higher chance of approval tick all the boxes before applying. If you think you can’t meet the criteria or you have questions about how a first-time home loan in Florida works, you can contact our mortgage professionals for help.

  • FICO score of at least 580 for a 3.5% down payment

  • FICO score between 500 and 579 for a 10% down payment

  • 2-year employment history with a few exceptions allowed

  • Must fully document your income for the last 2 years

  • Minimum FICO score requirement of 500

  • MIP (Mortgage Insurance Premium) is required

  • You must have a DTI of 43% or less 

  • The house you’ll purchase must be your primary residence

  • Zero foreclosures or bankruptcies in the last two years

Pros of Florida FHA Loans

The main reason why FHA loans are popular among first-time buyers is that borrowers can take advantage of benefits and protection that aren’t available with most conventional loans. The benefits of FHA loans include:

  • Lower credit scores are allowed

  • A lower down payment required

  • Interest rates are lower than traditional loans

  • Higher DTI are permitted

Conclusion

If you plan to buy a new home in Florida, using an FHA loan can help you attain homeownership without the strict requirements that conventional loans have. 

If you think you’re qualified to apply for an FHA loan in Florida reach out to one of our mortgage officers today. 

Applying for a loan with Element Home Loans of Treasure Coast, Florida can get you a step closer to living in your dream home.