If you are a First Time Home Buyer in Florida, we have a great news to share with you. Continue reading our article and you will find all our recommendations. First Time Home Buyers have a lot of programs available for purchase their first house.
There are different Mortgage programs that can facilitate your purchase process, depending on the situation in which you find yourself.
Different types of Mortgage loans for Primary Home properties in Florida
- FHA: only to buy main residence, minimum downpayment is 3.5%, minimum credit score is 620 (if your credit is lower and above 550 you can qualify, ask your trusted Loan Officer).
- Conventional: through the Home Possible and Home Ready programs, the first buyers can buy with 3% downpayment and minimum credit 620, some conditions may apply.
- VA: downpayment 0%, if eligible they can have up to $0.00 in closing costs.
- Doctores y Medicos: to buy main residence, 0% downpayment.
What type of loan is best for buying a home?
Buyers who want to buy a home with a low credit score should consider an FHA loan. The most widely available government-backed loans are FHA loans. There’s a common misconception that FHA loans come directly from the government, but they don’t.
However, if borrower has a good credit score and lowers DTIs, then Conventional loans are the best fit for borrowers. Generally, Conventional loans has lower monthly payment.
What type of home loan is the easiest to qualify for?
An FHA loan has lower downpayment requirements and is easier to qualify for than a Conventional loan. FHA loans are excellent for First Time Home Buyers because, in addition to lower up-front loan costs and less stringent credit requirements, borrowers can make a downpayment as low as 3.5%.
If borrowers qualify to Lower Income Area as First Time Home Buyers in Conventional programs, as Home Ready and Home Possible, buyers can make a downpayment as low as 3%.
What credit score do you need to be approved for most mortgage loans to buy a house?
- 550 or higher for FHA Loans
it’s recommended you have a credit score of 620, however if lower we can do Manual Underwriting and borrower can apply making a downpayment as low as 10%. - 620 or higher for Conventional Loans
it’s recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won’t be able to approve you.
As Mortgage Loan Officer, I can advise you throughout the process of buying your property. If you are thinking of buying or refinancing a property in Miami, Florida, send me a message in the box below or click here, and I will be ready to provide you with a totally free Financial Advice.
