New Guidelines For FHA Loan in Florida For Borrowers With A Bad Credit

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New Guidelines For FHA Loan in Florida

This articles has been written about guidelines for FHA loan in Florida state. Florida, the Sunshine State, known for its magnificent natural beauty and balmy climate became a part of the union in 1845. The state was named by Juan Ponce de Leon, a Spanish explorer, in tribute to Easter celebration of Spain known as ‘Feast of Flowers’ or ‘Pascua Florida’. Tourism is the leading industry of Florida and millions of visitors come to the state every year to enjoy at the theme parks, natural sites, national parks and the incredible beaches of the Sunshine State.

Are you looking to move to Florida? Then we’ll provide some information about the real estate market of Florida. According to Zillow, currently, the median price of homes that are available for sale is $288,000 while the median sales price is $213,400. The home values in the state have gone up by 8.3 percent in the period of last one year and they’re expected to rise 3.1 percent more within 2018.

So, what do you think, can you afford a home in Florida? Wait, are you thinking you might not be able to get a loan to buy a home because of bad credit score? That would surely have been a problem some time ago but, not anymore. Now, low credit score buyers can qualify for a mortgage — thanks to the new policy of the Federal Housing Authority (FHA). Let’s see the details of FHA requirements and what the new policy has to offer.

FHA Credit Score Requirements

With an FHA loan, a minimum credit score of 500 is required to buy a home. There should be a minimum score of 580 to make the down payment of 3.5 percent. However, several borrowers aren’t able to qualify if they don’t have a score of 620 or above.

The conventional loans which Freddie Mac and Fannie Mae surely have their own place in the real estate market, but for those with low credit score, they don’t provide much leverage. The FHA fills the gap as it offers a mortgage to those with lower income, low to medium credit score, income from several sources and co-borrowers.

FHA Lenders

Mortgage companies and banks that offer home buyers FHA loans don’t follow every detail of the FHA policies. Most lenders impose rules that are tougher than the guidelines for FHA loan in Florida imposed by the FHA itself. Yet, the FHA penalizes mortgage lenders when they approve bad loans. If borrowers default, then lenders will be penalized by the FHA even if the loan fits the published guidelines for FHA loan in Florida.

The FHA has introduced another method of evaluation to identify lenders who approve high-risk loans.

FHA’s Current Policy

The FHA compared an FHA lender with another one on the basis of same geographical location. This is called the compare ratio. So, if a certain FHA lender had 150 percent more loans that were late in payments than other lenders in the area, then that lender could be removed from the FHA’s list of approved lenders.

Many mortgage companies and banks faced issues with the compare ratio method. That is because if other lenders in the area had tougher guidelines for FHA loan in Florida for loan approval, they would appear better than lenders who didn’t impose tough regulations. This raised problems as lenders had to raise their minimum credit score requirements to match the other lenders in the area and be in the good book of loans.

FHA’s Updated Policy

As FHA’s policies made it hard for home buyers to get a loan, it decided to add another method of evaluation. Now, late paying loans will be separately examined based on loan borrowers. Three criteria are there for separate examination of late paying loans:

  • Borrowers which have a credit score < 640
  • Borrowers which have a credit score between 640 and 680
  • Borrowers which have a credit score > 680

The important question is how the new policy will help borrowers who have a bad credit score?

With the new guidelines for FHA loan in Florida, a lender won’t face consequences and lose its FHA loan credential if its low credit loans perform similar to loans in greater credit score rating. In addition, instead of comparison being made on the basis of geographical region, lenders will be compared nationwide. So, lenders can offer FHA loans to low credit score buyers without worrying about being kicked out from FHA’s list of approved lenders.

Lenders are Slow to Adopt New Policy

Many lenders have not adopted the new policy as they’re unsure of its results. When you search for an FHA loan with bad credit score, shop around, get in touch with multiple lenders and get quotes from them. One lender may have adopted the new guidelines for FHA loan in Florida, while the other might not have done so. The more you look around, the better options you’ll get.

If you have been denied a home loan or have any questions about real estate or mortgage please contact the author, Matt Herbolich, MBA, JD, LLM by phone or text at 786.390.9499 or by email at mherbolich@usa-mortgage.com. Mr Herbolich works when you work, so feel free to contact him any time.

 

FHA Limits for 2018 For Florida State

ALACHUA County
GAINESVILLE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BAKER County
JACKSONVILLE, FL
Single Duplex Tri-plex Four-plex
$343,850 $440,200 $532,100 $661,250
BAY County
PANAMA CITY, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BRADFORD County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BREVARD County
PALM BAY-MELBOURNE-TITUSVILLE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
BROWARD County
MIAMI-FORT LAUDERDALE-WEST PALM BEACH,
Single Duplex Tri-plex Four-plex
$345,000 $441,650 $533,850 $663,450
CALHOUN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CHARLOTTE County
PUNTA GORDA, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CITRUS County
HOMOSASSA SPRINGS, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
CLAY County
JACKSONVILLE, FL
Single Duplex Tri-plex Four-plex
$343,850 $440,200 $532,100 $661,250
COLLIER County
NAPLES-IMMOKALEE-MARCO ISLAND, FL
Single Duplex Tri-plex Four-plex
$450,800 $577,100 $697,600 $866,950
COLUMBIA County
LAKE CITY, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
DESOTO County
ARCADIA, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
DIXIE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
DUVAL County
JACKSONVILLE, FL
Single Duplex Tri-plex Four-plex
$343,850 $440,200 $532,100 $661,250
ESCAMBIA County
PENSACOLA-FERRY PASS-BRENT, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FLAGLER County
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
FRANKLIN County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GADSDEN County
TALLAHASSEE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GILCHRIST County
GAINESVILLE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GLADES County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
GULF County
PANAMA CITY, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HAMILTON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HARDEE County
WAUCHULA, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HENDRY County
CLEWISTON, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HERNANDO County
TAMPA-ST. PETERSBURG-CLEARWATER, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HIGHLANDS County
SEBRING, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HILLSBOROUGH County
TAMPA-ST. PETERSBURG-CLEARWATER, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
HOLMES County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
INDIAN RIVER County
SEBASTIAN-VERO BEACH, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JACKSON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
JEFFERSON County
TALLAHASSEE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LAFAYETTE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LAKE County
ORLANDO-KISSIMMEE-SANFORD, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LEE County
CAPE CORAL-FORT MYERS, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LEON County
TALLAHASSEE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LEVY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
LIBERTY County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MADISON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MANATEE County
NORTH PORT-SARASOTA-BRADENTON, FL
Single Duplex Tri-plex Four-plex
$299,000 $382,750 $462,650 $575,000
MARION County
OCALA, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
MARTIN County
PORT ST. LUCIE, FL
Single Duplex Tri-plex Four-plex
$316,250 $404,850 $489,350 $608,150
MIAMI-DADE County
MIAMI-FORT LAUDERDALE-WEST PALM BEACH,
Single Duplex Tri-plex Four-plex
$345,000 $441,650 $533,850 $663,450
MONROE County
KEY WEST, FL
Single Duplex Tri-plex Four-plex
$529,000 $677,200 $818,600 $1,017,300
NASSAU County
JACKSONVILLE, FL
Single Duplex Tri-plex Four-plex
$343,850 $440,200 $532,100 $661,250
OKALOOSA County
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL
Single Duplex Tri-plex Four-plex
$355,350 $454,900 $549,850 $683,350
OKEECHOBEE County
OKEECHOBEE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ORANGE County
ORLANDO-KISSIMMEE-SANFORD, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
OSCEOLA County
ORLANDO-KISSIMMEE-SANFORD, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PALM BEACH County
MIAMI-FORT LAUDERDALE-WEST PALM BEACH,
Single Duplex Tri-plex Four-plex
$345,000 $441,650 $533,850 $663,450
PASCO County
TAMPA-ST. PETERSBURG-CLEARWATER, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PINELLAS County
TAMPA-ST. PETERSBURG-CLEARWATER, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
POLK County
LAKELAND-WINTER HAVEN, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
PUTNAM County
PALATKA, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SANTA ROSA County
PENSACOLA-FERRY PASS-BRENT, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SARASOTA County
NORTH PORT-SARASOTA-BRADENTON, FL
Single Duplex Tri-plex Four-plex
$299,000 $382,750 $462,650 $575,000
SEMINOLE County
ORLANDO-KISSIMMEE-SANFORD, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
ST. JOHNS County
JACKSONVILLE, FL
Single Duplex Tri-plex Four-plex
$343,850 $440,200 $532,100 $661,250
ST. LUCIE County
PORT ST. LUCIE, FL
Single Duplex Tri-plex Four-plex
$316,250 $404,850 $489,350 $608,150
SUMTER County
THE VILLAGES, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
SUWANNEE County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
TAYLOR County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
UNION County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
VOLUSIA County
DELTONA-DAYTONA BEACH-ORMOND BEACH, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WAKULLA County
TALLAHASSEE, FL
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
WALTON County
CRESTVIEW-FORT WALTON BEACH-DESTIN, FL
Single Duplex Tri-plex Four-plex
$355,350 $454,900 $549,850 $683,350
WASHINGTON County
NON-METRO
Single Duplex Tri-plex Four-plex
$294,515 $377,075 $455,800 $566,425
Matthew Herbolich
Matthew Herbolich
Mr. Herbolich is a Senior Loan Officer at USA Mortgage, #NMLS 227262. He is an expert not only in lending but multiple facets of real estate, particularly the title industry. Matt trains his fellow loan officers on title industry topics, real estate investing, and countless mortgage guidelines. Have any questions? Call at 888-900-1020 or send email to: mherbolich@usa-mortgage.com

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