Purchasing your first home in Florida is a big milestone, but the path to homeownership can be challenging. With rising rents, student loan debt, and credit score requirements, many would-be buyers are discouraged from pursuing their dreams of owning their own home.
Luckily, there are mortgage solutions available that can make homeownership more feasible for all types of borrowers. The Federal Housing Administration (FHA) provides loans that feature more lenient credit requirements and lower down payment requirements than traditional mortgages. This makes florida fha loans a great option for aspiring homeowners who might not have the best credit or may not have the capacity to save up a large down payment.
FHA loans are government-backed and insured, which means lenders have to be more flexible with qualifying criteria. Typically, a borrower needs to have at least a middle credit score of 580 in order to qualify for an FHA loan, but some lenders accept scores as low as 500-579 with a larger down payment. Lenders also look for a steady employment history and a debt-to-income ratio below 43%.
Another benefit of florida fha loans is the ability to use them to purchase a fixer-upper and include the renovation costs into the initial mortgage. To qualify for this type of mortgage, the borrower must meet certain requirements, including using a certified home contractor and following specific lending guidelines. To learn more about florida fha loans, reach out to an expert mortgage coach at Dash and we’ll connect you with the right lender for your goals. florida fha loans