Wellspring Finance FHA Loans

Lower Down Payment Requirements

One of the most significant benefits of an FHA loan is the lower down payment requirement. Borrowers can make a down payment as low as 3.5% of the home’s purchase price if they have a credit score of at least 580. This is significantly lower than the typical 20% down payment required for conventional loans.

More Lenient Credit Requirements

FHA loans have more lenient credit requirements when compared with conventional loans. Borrowers with credit scores as low as 500 could qualify, though they need to make a higher down payment (typically 10%). This makes FHA loans accessible to individuals who may not qualify for other types of home loans due to their credit score.

Competitive Interest Rates

Interest rates on FHA loans are competitive and quite often lower than those found on conventional loans. Because the FHA insures these loans, lenders are more willing to offer advantageous terms.

Assumable Loans

FHA loans are assumable, meaning that if you sell your home, the buyer can take over your FHA loan, subject to certain conditions. This can be a selling point if interest rates rise after you purchase your home.

Higher Debt-to-Income Ratio Allowed

FHA loans allow for a higher debt-to-income (DTI) ratio than many conventional loans. This means that borrowers can qualify for an FHA loan even if they have a higher level of existing debt, as long as they have sufficient income to support the mortgage payments.

Closing Cost Flexibility

The FHA allows sellers, builders, and lenders to pay some of the borrower’s closing costs, such as the appraisal, credit report, or title expenses. This can significantly reduce the amount of cash needed to close on a home.

Rehabilitation and Repair Loans

FHA offers 203(k) loans, which permit buyers to finance both the purchase of a property and the cost of its rehabilitation through a single mortgage. This can be especially useful for buyers looking at homes that need significant repairs.

Streamlined Refinancing Options

FHA loans offer streamlined refinancing options, which can make it easier and less costly for homeowners to refinance their current FHA loans into new FHA loans at lower interest rates.

No Prepayment Penalties

FHA loans do not have prepayment penalties, meaning borrowers can pay off their loans early without incurring extra fees.

Assistance Programs Compatibility

FHA loans are generally compatible with state and local down payment assistance programs, making homeownership even more affordable for eligible buyers.

What is a Florida FHA Loan

A Florida FHA loan is a home mortgage insured by the Federal Housing Administration (FHA) specifically for homebuyers in Florida. The FHA loan program is designed to help lower and moderate-income prospective buyers, often with lower credit scores, afford homes by providing more lenient lending standards than conventional loans.

 

FHA Loan Florida

Key Features of FHA Loans in Florida

  • Flexible Qualification Requirements: FHA loans have much more lenient requirements when compared to conventional loans. A borrower can have a higher debt to income ratio making it easier to work with existing debt scenarios.
  • Lower Credit Score Requirements: FHA loans are structured to accommodate individuals with lower credit scores when compared with conventional loans. To receive the maximum benefit of an FHA Loan, a minimum credit score of 580 is required. Lower credit scores will require a higher down payment and are determined on a case-by-case basis.
  • Lower Down Payment: FHA loans typically have lower down payment requirements compared to other loan programs. A down payment as little as 3.5% is achievable for many borrowers.
  • Loan Limits: FHA loan limits are based on median home prices in the area and differ by county. Higher cost areas will have higher limits than lower cost areas.
  • Primary Residence Requirement: FHA loans require the borrower occupy the property as their primary residence after closing and continue to live there for one year after.
  • Property Structural Requirements: FHA loans have property standard requirements that need to be met. An FHA approved property appraiser will assess the property to ensure it meets certain safety guidelines.
  • Mortgage Insurance Premiums (MIP): FHA loans have mortgage insurance premium requirements. An upfront mortgage insurance premium, and an annual mortgage insurance premium.

Requirements for an FHA Loan in Florida.

  1. Credit Score Requirement – A minimum credit score of 580 to obtain the maximum financing with a down payment of 3.5%. Credit scores between 500 and 579 require a higher down payment and is determined on a case-by-case basis.
  2. Down Payment – The minimum down payment for an FHA loan is 3.5% with a credit score of 580 or higher. The source of the down payment can be savings, a grant, or a gift from a family member.
  3. Income and Employment – A consistent employment history, or with the same employer for the past two years.
  4. Property Requirements – The subject property must be for primary residence. The home must also meet specific FHA property standards and pass an FHA appraisal.
  5. Mortgage Insurance – FHA loans require borrowers to obtain mortgage insurance which include an upfront premium and an annual premium paid on a monthly basis.
  6. Debt-to-Income Ratio (DTI) – Typically, the goal is a DTI ratio not to exceed 43%. In many cases, lenders will allow higher ratios with compensating factors.
  7. Loan Limits – The amount of the loan must not exceed the FHA loan limits which vary by county.
  8. Additional Requirements – The borrower must provide proof of employment and income, and not have had a bankruptcy within the last two years or a foreclosure with the last three years.
Qualifications for an FHA Loan in FLorida

Qualifying for an FHA Loan in Florida?

We Will Help You Secure Your FHA Loan.

If you you’re ready to buy your dream home, apply today with Wellspring Finance to get pre-approved for an FHA loan and secure the funds you need.

Get in contact with one of our Home Loan Experts.

Get Started
Florida FHA Loan Purchase

Buying A Home with an FHA Loan in Florida?

We Will Help You Secure Your FHA Loan.

At Wellspring Finance, we streamline the loan application process making it simple and stress-free. We work with individuals from all backgrounds, including nontraditional ones, to obtain the right loan for you.

If you you’re ready to buy your dream home, apply today with Wellspring Finance to get pre-approved for an FHA loan and secure the funds you need to become a homeowner.

Submit the basic information above and get in contact with one of our Home Loan Experts.

Get Started

FHA Loan Credit Score Requirements

The Federal Housing Administration (FHA) loan program has specific credit score requirements to help determine qualification along with loan terms. Here are the primary credit score criteria for FHA loans as of 2024

  • Credit Score of 580 or Higher: Borrowers with a credit score of 580 or higher can qualify for the maximum financing, which means they are eligible for a loan with a minimum down payment of 3.5%.
  • Credit Score between 500 and 579: Borrowers with a credit score in this range can still qualify for an FHA loan, but they are required to make a higher down payment.
  • Credit Score below 500: Normally, borrowers with a credit score below 500 are not eligible for an FHA loan. However, some exceptions may apply, particularly for borrowers with nontraditional credit histories or those who can demonstrate other compensating factors.
  • Additionally, borrowers with higher credit scores normally benefit from better interest rates and more advantageous loan terms, even within the FHA loan program.

 

FHA Loan Credit Score Requirements

The Federal Housing Administration (FHA) loan program has specific credit score requirements to help determine qualification along with loan terms. Here are the primary credit score criteria for FHA loans as of 2024

  • Credit Score of 580 or Higher: Borrowers with a credit score of 580 or higher can qualify for the maximum financing, which means they are eligible for a loan with a minimum down payment of 3.5%.
  • Credit Score between 500 and 579: Borrowers with a credit score in this range can still qualify for an FHA loan, but they are required to make a higher down payment.
  • Credit Score below 500: Normally, borrowers with a credit score below 500 are not eligible for an FHA loan. However, some exceptions may apply, particularly for borrowers with nontraditional credit histories or those who can demonstrate other compensating factors.
  • Additionally, borrowers with higher credit scores normally benefit from better interest rates and more advantageous loan terms, even within the FHA loan program.
Florida FHA Loan Purchase

Buying A Home with an FHA Loan in Florida?

We Will Help You Secure Your FHA Loan.

At Wellspring Finance, we streamline the loan application process making it simple and stress-free. We work with individuals from all backgrounds, including nontraditional ones, to obtain the right loan for you.

If you you’re ready to buy your dream home, apply today with Wellspring Finance to get pre-approved for an FHA loan and secure the funds you need to become a homeowner.

Submit the basic information above and get in contact with one of our Home Loan Experts.

Get Started

Refinance FHA Loan in Florida

If you currently have an FHA Loan, take full advantage of the simplified loan process of the FHA Streamline Refinance.

Refinancing your FHA loan is often a great idea if you can acquire a lower interest rate. FHA Refinance enables you to reduce your monthly mortgage payments. It switches your original interest rate to a new one based on current market rates.

Refinancing your FHA loan is simple. It has several benefits including,

  • Ability to change an FHA Adjustable-Rate Mortgage to a Fixed-Rate mortgage
  • Requiring less documentation
  • No employment requirement
  • No appraisal required
  • No income documentation
  • No credit check
FHA Loan Refinance

Refinance

Get started with your FHA Loan Refinance. Submit the basic information above and get in contact with one of our Home Loan Experts.

Refinance