Homebuyers looking for a flexible loan with easy credit requirements and a low down payment can apply for an FHA loan in Miami. While FHA loans are the top choice of many first-time homebuyers, you do not need to be a first-time homebuyer to qualify. All you need to do is meet the basic criteria.
What Are the Benefits of FHA Loans in Miami?
When you take out an FHA loan, the Federal Housing Administration (FHA) insures your mortgage. If you were to default, the loan is covered by the government, so it represents a lower risk for your lender. This means that the lender can be more flexible with regard to your credit score and can reduce the required down payment.
- Miami FHA loans offer these advantages:
- Down payments as low as 3.5%
- Flexible credit score requirements
- Interest rates which are competitive
- Low closing costs, or in some cases, no closing costs
FHA loans are very versatile. They can be used to purchase an existing property or to build a new one. There are also FHA loans for refinancing, debt consolidation, or home renovation. Homebuyers can choose loan terms which fit their needs, and can decide for themselves whether to go with a fixed or adjustable rate.
Miami FHA Loan Requirements
Whether you are a first-time or returning homebuyer, you need to meet these basic qualifications to apply successfully for an FHA loan:
- The minimum credit score to receive an FHA loan is 500. For scores ranging from 500 to 579, a 10% down payment is required. Those who have credit scores of 580 and above can put just 3.5% down on their loan.
- Lenders are generally flexible when it comes to your debt-to-income ratio, but it is easiest to qualify if it is 43-45% or lower.
- Applicants for FHA loans should provide paperwork to prove steady employment over a period of two years minimum.
- FHA loans are only available for purchasing a home which will serve as a primary residence.
- Bankruptcy does not disqualify you from receiving an FHA loan, but it must be two years or more in the past.
- There must be no black marks on your credit alert interactive voice response system (CAIVRS) report.
Lending Bankers Mortgage Is Your FHA Mortgage Broker in Miami
If you are ready to make Miami your home and move into a beautiful property with flexible, competitive mortgage rates and terms, get in contact with Lending Bankers Mortgage.
We can take a look at your financial history, credit score, debt-to-income ratio, and the property you want to buy and let you know whether you are likely to qualify for an FHA loan. If you meet the criteria, we can expedite your application. We have helped numerous homebuyers throughout South Florida move into their dream homes quickly and affordably, and would love to do the same for you.
Please call (786) 220-1100 to get started on your FHA loan application today.