FHA Loan

The primary goal of the Federal Housing Administration (FHA) is to protect lenders from borrower default and to improve the US housing market. By insuring home loans offered by approved lenders, the FHA makes it possible for buyers to purchase homes at great rates and with low down payment and credit score requirements. This has allowed the FHA to become the largest insurer of mortgages in the world, having insured over 34 million mortgages since being created in 1934. Associates Home Loan of Florida, Inc. offers some of Florida’s best rates and terms on Tampa FHA loans.There are various FHA loan programs available to meet a wide range of borrower needs including the purchase of a new home, refinancing current home loans, financing renovation and rehabilitation projects, and reverse mortgages. First-time homebuyers are prime candidates for FHA loans but homeowners with existing FHA loans can benefit from FHA refinance programs as well. Those currently utilizing an FHA loan will have access to both cash-out refinance and streamline refinance programs. Buyers interested in financing a rehabilitation project can take advantage of an FHA 203k loan to combine the purchase of a home and the cost of repairs in a single home loan.Relaxed credit requirements and low down payment options are two of the primary reasons why first-time homebuyers are drawn to FHA loans. First-time homebuyers may be able to qualify for a FHA loan with a down payment of only 3.5% and a credit score as low as 580. Family members are even able to offer the down payment as a gift if the applicant does not have this on hand.

Tampa FHA Loan Requirements

  • Credit Score – The minimum credit score requirement is 580. Applicants with scores between 500 and 579 may still be able to qualify, but a higher down payment may be needed.
  • Debt-to-Income Requirements – A debt-to-income ratio of 43% or less is typically required although ratios as high as 50% may be approved in special circumstances.
  • Down Payment – 3.5% is the minimum down payment needed. If minimum credit score requirements are not met, the borrower may be asked to provide a larger down payment.
  • Property Requirements – All properties must meet certain safety, security, and soundness (structural integrity) requirements.

With every FHA loan there are two mortgage insurance premiums (MIP) that are due. The FHA will automatically add an up-front premium to your mortgage balance equal to 1.75% of the purchase price. This addition to your total loan amount will not affect your loan-to-value (LTV) ratio. The second premium due is an annual premium that is paid as part of your monthly mortgage payment. This premium is calculated at .70% to 1.05% of your annual mortgage balance. The exact amount will be based on factors including the total loan amount, your LTV ratio, and the length of your mortgage.

The FHA sets maximum loan limits by county which can range from $271,000 up to $636,500 in high-cost areas.

Tampa FHA Loan Limits

County Single-Family Two-Family Three-Family Four-Family
Hillsborough $275,665 $352,950 $426,625 $530,150

At Associates Home Loan of Florida, Inc., we are committed to helping first-time homebuyers and current homeowners throughout Florida with all of their FHA purchase and refinancing needs. Contact us today with any questions you may have regarding Tampa FHA loans or to begin the pre-qualification process!