For many people, especially first-time home buyers, the biggest obstacle to purchasing a home is putting together the 20% down payment required of most traditional mortgage products. The federal government, under the umbrella of the Federal Housing Administration (FHA), identified the issue, understood its impact on the economy and communities, and came up with a solution: the FHA home loan.
To meet the FHA loan requirements in Fort Myers, FL, a buyer must:
- Have verifiable income and steady employment
- Have a back-end debt-to-income ratio of less than 43%, although sometimes you can go much higher. This includes the mortgage debt plus any other personal debt such as auto loans, personal loans, student loans, child support, and credit cards.
- Put down 3.5% of the total loan amount with a FICO score of 580, or 10% down payment with a score of 500-579.
- Reside there as their primary residence.
What Are the FHA Home Loan Limits in Fort Myers, Florida?
Another caveat of FHA loan products is that there is a mortgage limit determined by:
- County of residence
- Number of units in property
As a municipality in Lee County, Florida, the FHA loan limits for Fort Myers are:
- 1 unit (single family residence) = $356,362
- 2 units (duplex) = $456,275
- 3 units (triplex) = $551,500
- 4 units (fourplex) = $685,400
How Does a House Qualify for FHA Financing?
When it comes to property requirements, HUD, the Department of Housing and Urban Development, trends toward generalities when it comes to their property requirements. When considering CDBG (Community Development Block Grant funds) a house must be “decent, safe, and sanitary.” For a house to qualify for FHA financing, it must be “safe, sound, and secure.”
So what does that mean? The FHA definitions are:
- Safe: The home should protect the health and safety of the occupants
- Sound: The property should not have physical deficiencies or conditions affecting its structural integrity
- Secure: The home should protect the security of the property
To qualify for an FHA loan, a Uniform Residential Appraisal must be performed by a HUD-approved inspector/appraiser. Examples of defects that FHA requires to be corrected before approval are:
- Electrical issues like frayed wiring
- Roofs having more than three layers of shingles
- The presence of asbestos
- Inadequate bathroom facilities
Contact Fort Myers Mortgage Experts in Fort Myers, FL for your Free Quote
The time to buy is now, and with the DiGregorio Difference, we can make it happen. We don’t say “No,” we say “When?” Contact us today to discuss loan options, or to determine where you are in the home buying process. Together, we can make a better Fort Myers, FL.