Licensed in the State of Florida

Licensed in the State of New Jersey


First Time Home Buyer or Refinance

December 11, 2017


First Time Home Buyer or FHA Refinance


Do you want to learn more about becoming a first time home buyer?

The FHA program was created as part of the National Housing Act on June 28, 1934. FHA was created to help stimulate the housing market making loans more accessible and more affordable. The FHA program was created as a result of The Great Depression to help anyone including families, the elderly, people on disability and lower-income families be able to buy a home.

After the financial crisis of 2008 all the major banks raised their credit standards for approving FHA loans. Because the banks make the rules for loans they will approve, they may require a minimum credit score of 640 for their loans. These guidelines are the bank's guidelines.

When you apply for an FHA loan at a major bank and they tell you their minimum credit score requirement is 640. This does not mean that it's FHA's minimum credit score requirement. It means that they are the bank's credit score requirements.


FHA after bankruptcy   FHA after foreclosure   FHA after short sale


Credit score - On January 20, 2010 FHA announced a new policy to address risk. FHA changed the minimum credit score for new borrowers.

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  • FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%

This has allowed the FHA to better balance its risk and continue to provide financing for home buyers.

Debt-to-income ratio - April 1, 2013 FHA loan requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender and FHA can calculate the borrower's debt-to-income ratio.

  • FHA maximum debt to income ratio can be over 55%
  • Manual underwriting maximum debt to income ratio is 50%

Charge off accounts  - Collection accounts - Judgments


Mortgage Insurance - On January 9, 2015 the Federal Housing Administration (FHA) announced the reduction of it's annual Mortgage Insurance Premium (MIP) rates.

Effective on or after January 26, 2015 FHA will reduce the premium from 1.35% to .85% a reduction of .5%.

Combined with low interest rates and the reduction of MIP rates means that it is a great time to buy a home or refinance your mortgage.


First Time Home Buyer - FHA Refinance


Closing cost - FHA allows the seller to pay up to 6% of your closing cost.

If you are buying a $100,000.00 house FHA allows the seller to pay up to $6,000.00 for your closing cost. It must be in writing in the sales contract, "Seller will pay up to 6% of buyer's closing cost."

If you do not write it into the sales contract then you will be paying the closing cost. In the state of Florida closing cost for a $100,000.00 house average around $4,300.00 depending on taxes, insurance and who's paying the transfer tax and owner's title insurance.

By allowing the seller to pay for your closing cost you will decrease the amount of money required to buy a home. Buying a $100,000.00 property requires $3,500.00 down payment and if the seller pays up to $6,000.00 for your closing cost you will only need around $4,000.00 to buy a $100,000.00 in Florida.

Are you short funds to close? The FHA no closing cost loan allows all of your closing cost to be rolled into your loan including your appraisal fee, hazard insurance premium and even your escrow account.

Are you a first time home buyer? Do you need to get pre-approved for a first time home buyer program in Florida? Apply now!


First Time Home Buyer - FHA Mortgage - FHA Refinance


Apply Now!


Call us 888.958.5382


FHA purchase FHA refinance FHA 203k loan FHA cash out $100 down loan

FHA loan requirements - ‎FHA loan limits - ‎FHA loans - ‎FHA Streamline


www.MORTGAGE-WORLD.com, LLC is a licensed residential mortgage broker in the state of Florida & New Jersey and will match you with the lender that will approve your FHA loan down to a 500 credit score.


We look forward to working with you.


Call 888.958.5382


What's the minimum credit score needed to buy a house or refinance?


FHA Loan

FHA loans require a minimum 500 credit score to buy a house or refinance

500 credit score


Want to know if you qualify for an FHA loan? Get pre-approved for an FHA loan online.


Recent Articles

  1. First Time Home Buyer Program Get Pre-Approved Buy a Home Refinance FHA Loans

    Dec 10, 17 09:54 AM

    Are you a first time home buyer? Requirements to qualify for an FHA loan. Purchase, refinance or cash out. Minimum credit score, down payment & cash out limits for FHA loans. www.Mortgage-World.com

    Read More

  2. Home Buyer Programs 2018 First Time Home Buyer Programs

    Dec 10, 17 09:05 AM

    Are you thinking of buying a home in 2018? First time home buyer programs 2018 allows you to buy a home with a low down payment. Minimum credit score of 580 to qualify for 3.5% down payment program.

    Read More

  3. FHA Loan Requirements 2018 - FHA Loan Programs - www.Mortgage-World.com

    Dec 08, 17 06:20 AM

    FHA loan requirements 2018. FHA loan requirements and guidelines for mortgage insurance, lending limits, dti, credit issues, and closing costs.

    Read More


Call Now, Our Staff is Available!

888.958.5382

Apply Now!