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FHA Home Loans

FHA loans with just 3.5% down payment for homebuyers in Lake Mary and throughout Florida. Flexible credit requirements make homeownership accessible.

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What Are FHA Loans?

FHA (Federal Housing Administration) loans are government-backed mortgages designed to help homebuyers in Lake Mary, FL, and across Florida achieve homeownership with lower down payments and more flexible credit requirements than conventional loans.

FHA Loan Benefits for Lake Mary Homebuyers

Low Down Payment

Only 3.5% down payment required with a credit score of 580+. Down to 10% with scores as low as 500.

Flexible Credit

More lenient credit requirements than conventional loans, making it easier for first-time buyers.

Gift Funds Allowed

Down payment and closing costs can come from gifts from family members or employers.

First-Time Buyer Friendly

Ideal for first-time homebuyers in Lake Mary and throughout Florida.

FHA Loan Requirements in Florida

  • Credit Score: Minimum 500 (10% down) or 580 (3.5% down)
  • Down Payment: 3.5% with 580+ credit score, 10% with 500-579
  • Debt-to-Income Ratio: Typically 43% or less, up to 50% with compensating factors
  • Mortgage Insurance: Upfront and annual MIP required
  • Property Requirements: Must be primary residence, meet FHA standards

FHA Loan Limits in Lake Mary, FL

FHA loan limits vary by county in Florida. In Seminole County (where Lake Mary is located), the 2024 FHA loan limit for single-family homes is $498,257. For multi-unit properties, limits are higher.

FHA Streamline Refinance in Florida

Existing FHA borrowers in Lake Mary and throughout Florida can take advantage of FHA Streamline Refinance, which requires minimal documentation and no appraisal in many cases. This can help you lower your monthly payment or switch from an ARM to a fixed-rate loan.

Frequently Asked Questions About FHA Loans

FHA loan limits vary by county in Florida. In 2024, most Florida counties have a limit of $498,257 for single-family homes. High-cost areas like Miami-Dade and Broward counties have higher limits. For detailed information, see our FHA Loan Limits in Florida guide.

No, FHA loans are only available for primary residences. You cannot use an FHA loan to purchase a second home or investment property. However, if you're relocating for work and need to keep your current home, you may be able to use an FHA loan for your new primary residence.

FHA mortgage insurance (MIP) is required for the life of the loan if you put down less than 10%. If you put down 10% or more, MIP can be removed after 11 years. Unlike conventional loans, you cannot remove FHA MIP by reaching 20% equity - you must refinance to a conventional loan to eliminate it.

Yes, FHA loans are more forgiving than conventional loans. You can qualify for an FHA loan 2 years after a Chapter 7 bankruptcy discharge, 1 year after a Chapter 13 bankruptcy (with court approval), and 3 years after a foreclosure. You'll need to show re-established credit and stable income.

FHA loans typically allow a debt-to-income (DTI) ratio of up to 43%, though some lenders may approve up to 50% with strong compensating factors like excellent credit, significant reserves, or a large down payment. Your total monthly debt payments (including the new mortgage) should not exceed these percentages of your gross monthly income.

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