FHA loan requirements 2016 first time home buyer Florida

FHA loan requirements 2016 first time home buyer Florida

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 transfer tax and owner's title insurance.

If you allow 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.

FHA loan requirements 2016 first time home buyer Florida

The minimum credit score to buy a home in Florida with 3.50% down payment using an FHA loan is 580. Using your credit report a middle score of 580 is required from EQUIFAX, TRANS UNION and EXPERIAN.

Once we run your credit report if your middle credit score is 580 or above  you should be eligible for an FHA loan. There are other factors that determine eligibility such as income, property type, assets, debts and credit history.

You do need a credit score to qualify for an FHA loan. FHA allows you to use three alternate trade lines such as rent, utility bills, car insurance and other forms of payments as a credit reference. FHA allows a home buyer with no credit score to qualify for 3.5% down payment.

FHA loan requirements 2016 first time home buyer Florida

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.

• Most lenders will limit maximum debt-to-income to under 49.99%
• Manual underwriting maximum debt to income ratio is 43% and up to 49.99% with two compensating factors
• FHA maximum debt to income ratio is 54.99%

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