FHA is one of the most popular loan options because it provides a more lenient credit and income requirements than other mortgages. Advantages of FHA Loans • You can qualify with a lower credit score compared to other loans. • You can buy a home with a down payment as low as 3.5%. • You may qualify even if you’ve had financial difficulties in the past, like a bankruptcy. • If you already have an FHA loan, you can refinance with FHA Streamline to lower your interest rate. • You offer lender credits to pay for your closing costs for both purchase and refiance The Benefits of Getting an FHA Loan from 1st Florida Lending • We are FHA-approved lender and process FHA loans every day. • Our process is completly digital which means saves time with paperwork. • We have FHA Loan experts available to help you understand whether an FHA loan is the right Load for you. • We offer great customer service whcih continues after you close. How FHA Loans Work • You get an FHA loan from an FHA-approved mortgage lender. • The loan is insured by the Federal Housing Administration. • Because of that insurance, the credit and income requirements for an FHA loan are more lenient. • To help fund the FHA program, in most cases you’ll pay mortgage insurance, which is added on to your monthly payment. • The home you want to buy will have to meet the FHA’s minimum property standards. FHA Loan Requirements and important FHA Guidelines for Borrowers The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. • 640 Min FICO score = 3.5% down payment + we pay your closing cost. • 580 Min FICO score = 3.5% down payment. • FICO score between 500 and 579 = 10% down payment. • MIP (Mortgage Insurance Premium ) is required. • Debt-to-Income Ratio < 43%. • The home must be the borrower's primary residence. • Borrower must have steady income and proof of employment. FHA Loan Credit Issues As FHA lenders we will review your past credit performance while underwriting your loan. A good track record of timely payments will likely make you eligible for an FHA loan. The following list includes items that can negatively affect your loan eligibility: No Credit History If you don't have an established credit history or don't use traditional credit, your lender must obtain a non-traditional merged credit report or develop a credit history from other means. Bankruptcy Bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage. For Chapter 7 bankruptcy, at least two years must have elapsed and the borrower has either re-established good credit or chosen not to incur new credit obligations. Late Payments It's best to turn in your FHA loan application when you have a solid 12 months of on-time payments for all financial obligations. Foreclosure Past foreclosures are not necessarily a roadblock to a new FHA home loan, but it depends on the circumstances. Collections, Judgements, and Federal Debt In general, FHA loan rules require the lender to determine that judgments are resolved or paid off prior to or at closing.

We are one of only two Lenders in Florida that approve FHA, VA, USDA and Reverse Mortgage Loans with a 580 Credit Score