Low Credit Score Mortgage Florida 2024

Low Credit Score Mortgage Florida 2024 Down to 500

A minmum credit score of 500 is required to purchase a home or refinance.

Home Purchase

With a credit score of 500, a minimum down payment of 10% is required. With a credit score of 580 or higher, a minimum credit score of 3.5% down payment. Down payment assistance is available with a credit score of 600 or higher. If the seller agrees to seller concession to cover the closing costs, you can purchase a home with no money out of pocket at closing. The only out of pocket expense will be an appraisal fee ranging between $500-$650.

Home Refinance

A minimum credit score of 500 is required for a cash-out refinance or a rate/term refinance. For a cash-out refinance, there must be at least 20% equity in the home after receiving the cash back. For a rate/term refinance, there must be at least 2.5% equity in the home after completing the refinance. If there's currently a mortgage on the property, it must have at least 12 months of on time payments to qualify for the cash-out refinance. The rate/term refinance allows 1 30 day later payment in the last 12 months.

Low Credit Score Mortgage Florida 2024

FHA Requirements

What are the FHA Requirements?

The max debt-to-income ration for an FHA loan is 46.99%/56.99% with a credit score of 620 or higher. If the credit score is under 620, the max debt-to-income ratio for an FHA loan is 36.99%/46.99%.

If the borrower had a bankruptcy, they may still be able to qualify.

For normal underwriting guidelines, it must be more than 2 years since date of discharge at the time of case number assignment, and borrower must have re-established good credit, or chosen not to incur new credit obligations.

Manual underwriting allows the waiting period to be less than 2 years. For a chapter 7 bankruptcy, at least 12 months since the bankruptcy may be acceptable if the borrower can show the bankruptcy was cause by extenuating circumstances and has exhibited a documented ability to manage his or hers financial affairs.

For chapter 13, the borrower must document the following:

1. 1 year of the pay-out period under the bankruptcy has elapsed.
2. All payments have been made on time.
3. The borrower has recieved written permission from the court to enter into a mortgage transaction.

If the borrower has collection accounts that total to over $2,000, 5% of the balances must be included in the debt-to-income ratio.

Charge-off and Medical Collections are not required to be paid and are not included in the debt-to-income ratio.

All judgments and liens must be paid prior to or at closing except when a payment arrangement has been established.

Foreclosures and short sales require a 3 year waiting period before qualifying for a new mortgage.

Two months worth of bank statements are required for proof of assets. Any deposit 1% and greater of the sales price must be sourced and seasoned.

Gift funds are allowed from a family member or relative.

Non-occupant co-borrowers are acceptable.

Eligible Properties

1-4 Units

PUDs

Manufactured Homes (single-wide and double-wide)

Mobile Homes

FHA Approved Condos (if the condo is not currently approved, we can get it approved while in the underwriting process). Here's a list of FHA approved condos

Maximum Loan Amounts

• 1 Unit - $498,257
• 2 Units - $637,950
• 3-Units - $771,125
• 4-Units - $958,350

Low Credit Score Mortgage Florida 2024

We look forward to working with you.