As a prospective homebuyer in the state of Florida, you may be considering florida fha loans– which are backed by the Federal Housing Administration. The mortgage requirements on these loans are much easier and allow most buyers to purchase their property with as little as 3.5 percent down. However, though they are easier to get, there are times when the application will be rejected.
In order to be approved for an FHA loan, you must meet certain application requirements. You must be willing and able to pay a premium for insurance- which helps to offset any losses from unpaid debts. In addition, you must meet two specific ratios- one that measures your monthly mortgage payment vs gross household income and one that measures the total monthly debts you have vs gross household income.
According to experts, most of the time, those who are denied an FHA mortgage loan, is due to past credit performance. In addition, recent payment history does play a significant factor. You must not have any negative marks on your credit history for at least 2 years prior to applying for an FHA mortgage loan. If you do not fall into the appropriate debt-to-income ratio, you will be denied. Finally, every state does have limits for the amounts of FHA mortgage loans- this means those who are looking for a large mortgage may be denied.
In order to prequalify for florida fha loans, you must demonstrate that you can gain employment and have a stable job history. This means that you should have worked for the same employer for at least 2 years prior to applying. In addition, there must be no foreclosures for the past three years and no bankruptcies for the past 2 years. Though you may prequalify- the process does require you to go through a more complete review- which means you may end up getting denied.