FHA loans are insured by the Federal Housing Administration. Designed to help first-time buyers and those with modest credit scores, FHA offers down payments as low as 3.5% with generous seller credit allowances.
Best For:
First-time buyers, credit scores from 580 to 670, or buyers requiring higher DTI flexibility.
Key Guidelines & Requirements
- Minimum 580 credit score for 3.5% down payment
- Stable 2-year work history in the same line of work
- Property must meet FHA primary residence safety standards
- Maximum DTI up to 57% with strong compensating factors
Program Benefits & Considerations
Pros:
- ✓ Low 3.5% down payment
- ✓ More forgiving on past credit blemishes or bankruptcies (2 years post-discharge)
- ✓ Sellers can contribute up to 6% toward closing costs
Considerations:
- ! Requires upfront (1.75%) and monthly Mortgage Insurance Premium (MIP)
- ! MIP lasts for the life of the loan if putting down under 10%
Frequently Asked Questions
Can I get an FHA loan with a 600 credit score?
Yes! FHA guidelines allow approvals down to 580 with 3.5% down.
Can the seller pay my closing costs?
Yes, sellers can contribute up to 6% of the purchase price toward closing costs.
See If You Qualify For Florida FHA Home Loans
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