What are the benefits of an FHA Loan in Miami?
FHA loans are very versatile. They can be used to purchase an existing property or to build a new one.
There are also FHA loans for refinancing, debt consolidation, or home renovation. Home buyers can choose loan terms which fit their needs, and can decide for themselves whether to go with a fixed or adjustable rate.
Miami FHA Loan Requirements
Whether you are a first-time or returning home buyer, you need to meet these basic qualifications to apply successfully for an FHA loan:
- The minimum credit score to receive an FHA loan is 500.
For scores ranging from 500 to 579, a 10% down payment is required. Those who have credit scores of 580 and above can put just 3.5% down on their loan.
- Lenders are generally flexible when it comes to your debt-to-income ratio, but it is easiest to qualify if it is 43-45% or lower.
- Applicants for FHA loans should provide paperwork to prove steady employment over a period of two years minimum.
- FHA loans are only available for purchasing a home which will serve as a primary residence.
- Bankruptcy does not disqualify you from receiving an FHA loan, but it must be two years or more in the past.
- There must be no black marks on your credit alert interactive voice response system (CAIVRS) report.
Why Take Out an FHA Loan?
When you take out an FHA loan, the Federal Housing Administration (FHA) insures your mortgage. If you were to default, the loan is covered by the government, so it represents a lower risk for your lender. This means that the lender can be more flexible with regard to your credit score and can reduce the required down payment.
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Apply for an FHA Loan in Miami With Dynamic Mortgage LLC
When you are applying for an FHA loan, you will need to be prepared for a lengthier application process. The stricter requirements may necessitate more documentation. For this reason, applying for a jumbo loan on your own can be a challenge.
Thankfully, you are not on your own. Dynamic Mortgage is here to help. As your Miami jumbo loan partners, we can connect you with competitive mortgage offers from more than 130 area banks and lenders. We also can help speed up the application process and make sure that you provide exactly the documentation you need to get a jumbo loan with affordable rates and terms.
Call (305) 735-3278 to get started now.