FHA loan programs for bad credit Florida
FHA loan programs for bad credit Florida
Qualifying for an FHA loan with bad credit
After the credit crisis of 2008 qualifying for a mortgage became a lot harder. If not for FHA many borrowers would not qualify for a mortgage. What makes FHA different than a conventional loan is the FHA will approve you and give a better interest rate with a lower down payment even if you have a low credit score.
When you compare FHA vs. conventional loans FHA loans win the down payment and credit score race hands down. FHA loans only requires a minimum down payment of 3.5 percent of the purchase price with a 580 credit score versus a conventional loan requiring between 5 to 20 percent down payment with a minimum 620 credit score.
FHA loan policy about credit score for new purchase home loans.
The lowest credit score to buy a house or refinance your mortgage is 500. These new requirements for both FHA and VA went into effect in 2010.
- Fannie Mae requires a minimum score of 620
- Freddie Mac requires a minimum score of 620
- FHA requires a minimum score of 500
- VA requires a minimum score of 500
- USDA requires a minimum score of 580
- Portfolio requires a minimum score of 640
FHA loan programs for bad credit Florida
Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.
New FHA loan requirements borrowers may also be eligible for an FHA insured loan on a purchase transaction after 12 months from the completion, discharge, trustee's sale if the borrower meets the requirements for extenuating circumstances Economic Event.
Credit score
New FHA announced a policy change to address risk and strengthen finances. FHA has 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 allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well
- HUD homes for sale in Florida
- FHA loan credit score standards
FHA loan programs for bad credit Florida
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FHA Short Sale Guidelines
FHA guidelines requires three year past from the date of sale of the property
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FHA Credit Score
Requires a minimum credit score of 500 to buy a home or refinance
Collection accounts
A collection is minor in nature usually does not need to be paid off as a condition for loan approval
Bankruptcy
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
Foreclosure
Foreclosure must have been resolved for at least 3 years
- Government loan: Seasoning is determined by the date the claim was paid
- Loans other than Government: Seasoning is determined by the date of sale the lender sold the property
Short Sale
FHA guidelines requires three year past from the date of sale of the property
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