FHA Loan Florida Requirements: Best Rates & Options (2021)

That’s why it pays to go with a lender familiar with FHA guidelines.

Here at the Wendy Thompson Lending Team, we’ve got you covered.

To know how much you might be eligible to borrow, let’s dive into the 2020 FHA loan limits in Florida.

FHA LOAN LIMITS FLORIDA BY COUNTY

Florida FHA loan limits vary by county. If you look at Florida’s 67 counties, you’ll find that 42 have limits that fall below the standard amount.

Fortunately, caps are based on home prices in the area. A lower cap generally means you’ll be able to find a home with a lower price tag.

But here’s the thing.

Some areas in Florida are known for their high-priced housing.

For instance, you know the gorgeous Florida Keys? If you’re house shopping there, you’d be buying in Monroe County where FHA loan limits go up to $529,000.

So, location really matters.

Here’s what Florida FHA loan limits look like by county:

FHA LOAN REQUIREMENTS FLORIDA

FHA loan requirements in Florida aren’t much different than what you’d find in other states.

It’s helpful to know what you need to qualify, so you know what to expect.

Here’s a quick look at the FHA loan Florida requirements:

• Steady income
• Good credit score
• 3.5% down payment

We recommend a minimum credit score of 640 to take advantage of the 3.5% down payment option.

If your credit history worries you, take steps to improve your score now. Make sure to pay your bills on time and keep credit balances low. 

Paying down debt and checking your credit report to dispute inaccuracies can give your credit score a quick boost.

What about income requirements?

Don’t worry.

FHA loans in Florida don’t have income requirements. 

As long as you earn enough to make the monthly payments, there are no other income guidelines.

Your lender may ask for documentation for proof of income, such as pay stubs, W-2s, or tax returns. They usually ask for your bank statements, too. It’s so they can verify your earnings and confirm you have enough funds to cover the down payment.

But there’s a catch:

While the Federal Housing Administration sets some requirements, others are left up to the individual lender.

That’s why picking a lender is so important.

You could face an uphill battle if the lender isn’t up to date on 2020 Florida FHA loan requirements.

HOW TO APPLY FOR FHA LOAN IN FLORIDA

Applying for an FHA loan in Florida is as easy as 1-2-3:

1. Find an experienced FHA lender to submit your application
2. Work with a reputable real estate agent to find a home
3. Deliver documentation to your lender for final loan approval

Sounds easy, right?

And, it is – with a little pre-planning.

First, secure a pre-qualification from your FHA lender. 

Here’s why that matters.

When you’re shopping for a home, you’re dreaming big. You want the best house you can afford!

But how do you know what you can afford?

That’s where pre-qualification comes in.

When a lender pre-qualifies you for a loan, you get a realistic idea of how much you can borrow to purchase a house.

A pre-qualification letter can help you and your realtor pick out the perfect home.

Plus, it can give you an advantage when you’re house shopping.

That’s because some sellers require you to submit proof of pre-qualification with your offer.

And if you get that done now? You’re one step ahead.

FHA LOAN RATES FLORIDA

FHA loans are known for their low down payments and flexible credit requirements.

But there’s a wild card you need to watch for:

Interest rates.

Interest is the fee you pay to the bank to borrow money. It changes daily based on market conditions, but you have some influence over the rate you get.

For instance, one major factor that impacts your rate is your credit score. Other variables include the length of the loan term, how much your down payment is, and your home’s location and sales price.

But here’s the kicker…

Because lenders set their own interest rates, you could pay a higher rate depending on where you get your loan.

That’s important because even the smallest difference matters.

Let’s compare a rate of 3.5% to 3.0% on a $250,000 house with a 30-year mortgage:

3.5% - Expect to pay $154,140.22 in interest over the life of the loan

3.0% - Expect to pay $129,443.63 in interest over the life of the loan

If you can drop your rate by just half a percentage point, you’d save over $24,000. 

And that’s a big chunk of change.