First Time Home Buyer Loan Programs In Florida

Florida First Time Home Buyer Programs

There are many loan programs for first time homebuyers in Florida. Some of these programs do offer no money down mortgage, that can be extremely beneficial to first-time buyers as they might not have enough funds to cover down payment and closing costs.

Top 5 Programs for first-time buyers in Florida

• FHA loan :A loan insured by the Federal Housing Administration (FHA), this loan type requires smaller down payment and you can qualify with average credit score unlike most conventional loans. First-time homebuyers can buy a home with a credit score of 580 and with only about 3.5% down. If your credit score is above 500 butless than 580 then you might need 10% down.
• USDA loan :A loan program 100% guaranteed by the U.S. Department of Agriculture (USDA). To avail this program you have to buy the house in as USDA eligible area or what they more commonly call - a USDA zone. Ideally you will need a credit score of 640 to qualify for this loan program. USDA loans have income limits based on where you live, for most of Florida the income limits are $90,300/- (for 1-4 family members) and $119,200/- (for 5-8 family members).
• Freddie/Fannie :These are conventional loans backed by Fannie Mae or Freddie Mac, that require only 3% down. To qualify, homebuyers will need a minimum credit score of 620 and a good credit history. Debt-to-income (DTI) ratio for Fannie Mae can be as high as 50%.
• HomeReady Loan :This loan proram is again by Fannie and is a great fit for someone with low income. First-time or repeat homebuyers can avail this program even if they have limited cash for downpayment. Minimum credit score required is 620, but you can get better rates if your credit is above 680.
• FHA Section 203(k) :As the name suggests, this one is again from FHA. It is basically 2 loans in one which which not only helps you pay for the home, but also pays for the home improvement. FHA calculates home's value after the improvements have been performed. This requires 3.5% down and cost of improvement must be at least $5,000/-

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