Below are the 2023 Florida FHA loan requirements. These FHA loan requirements change annually and we update them as they change.
Maximum loan amount vary by county for traditional FHA loans. The current base FHA loan limit in most of Florida counties for a one-family home is set at $472,030. For county specific limits, view HUD FHA Mortgage Limits.
The borrower's minimum required investment is 3.5% of the purchase price / adjusted value of the property. The source must be from borrower's own funds or as a gift from an acceptable donor.
A two-year employment and income history is required for both employees and self-employed borrowers by way of pay stubs, tax returns and W2s or 1099s.
Borrowers with court ordered alimony and child support must document receipt of the income for a minimum of three (3) months and proof that it will continue for at least three (3) years.
A tri-merged credit report score of 640 is preferred. Depending on overall credit, sometimes borrowers may qualify with middle scores as low as 580.
In some instances, where a co-borrower does not have any credit scores, FHA will consider approval so long as the primary borrower meets the minimum credit score requirements and has more than 50% of the qualifying income with a minimum of 3 tradelines active for last 24 months.
Regardless of credit scores, FHA still evaluates overall credit history to determine if borrower gets approved eligible findings that meet FHA approval guidelines.
Seller and other third party contributions are limited to 6% of the sales price.
Bankruptcy does not automatically disqualify a borrower from obtaining an FHA loan. Minimum 2 years since discharge of chapter 7 bankruptcy. Borrower with less than 2 years’ discharge may qualify for financing so long as they meet the extenuating circumstances as defined by FHA/HUD. Same rule applies for borrower with chapter 13 bankruptcy.
However, borrower with chapter 13 bankruptcy may still qualify if the bankruptcy has been discharged less than 2 years if the lender is willing to do a manual underwrite with satisfactory payment history under the chapter 13 plan.
Charge-off accounts are not included in borrowers' debt.
For non-medical collection accounts when the cumulative outstanding balance is greater than $2,000 borrower may either pay-off the balance or, for the purpose of debt-to-income ratio (DTI), provide proof of a payment plan. If neither are an option, the lender must use 5% of the outstanding balance and include it in the borrower's DTI calculation.
If the file receives automated Approve/Eligible findings then no documentation is required from the borrower.
Delinquent child support must be paid current or in a payment plan.
Borrowers with delinquent tax debt are ineligible unless currently in payment plan.
Borrowers with delinquent tax debt are ineligible unless currently in repayment plan. Repayment plan tax liens are not required to be paid in full if documentation is provided indicating the borrower is in a valid payment plan.
The following is required:
Foreclosure waiting period is measured from the date of title transfer. Three (3) years must have elapsed from the time title transferred. If the foreclosed loan was an FHA loan, the 3-year waiting period is based on the date the FHA claim was paid (e.g. foreclosure 11/12/14, FHA claim dates was 7/12/15, the 3-year waiting period ends 7/13/18).
Borrowers with foreclosure/DIL within 3 years of case number assignment that was due to documented extenuating circumstances may be eligible if the borrower has re-established good credit since the foreclosure. A downgrade to manual underwriting is required. If the foreclosure was included in the bankruptcy, the foreclosure waiting period still applies. HUD treats the foreclosure and BK independently, not as a single event.
The three-year waiting period from date of title transfer still applies unless they were current at the time on short sale.
Maximum debt-to-income (DTI) ratio varies based on overall credit history and assets. Typically, the DTI cannot exceed 45% of the borrower's gross income. However, in some cases borrowers with as high as 54.9% DTI may be eligible and in other cases borrowers may be capped at 43% DTI.
Borrowers with student loans that are in deferment or not fully amortized will be required to calculate 1% of the outstanding balance as minimum monthly payment to be included in their debt-to-income ratio (DTI) calculation.
If the subject property is purchased at auction, the buyer’s premium may be included in the calculation of the final sales price, as long as the amount of the buyer’s premium is reasonable and customary for the area.
