FHA Loans

At Loan Factory, Inc., we want to help you understand how an FHA mortgage loan works. In all actuality, the Federal Housing Administration (FHA) doesn’t loan any money directly, they insure it. This means that you’re considered a less risky borrower than someone who might not have the backing of the federal government. Our role is to ensure that you qualify for an FHA mortgage and structure your loan accordingly.

The other pages in the FHA Loan Center can help you explore more about this unique program. Whether you are trying to determine if you qualify or want to find out what kind of documentation you’ll need to secure your loan, our site provides the information you’re seeking.

If you’re searching specifically for FHA Loans FL or exploring your options for an FHA Loan Florida, our team specializes in offering localized advice tailored to your needs. Florida’s dynamic housing market presents great opportunities for buyers who leverage the benefits of an FHA loan, including lower down payments and more flexible qualification requirements. Whether you’re buying your first condo in Miami, a family home in Orlando, or a retirement property near Tampa, we are ready to help you move forward confidently. An important resource for considering an FHA loan is the official Housing and Urban Development (HUD) website, where you can find more detailed information about loan insurance and homeownership programs.

FHA insured mortgages are some of the best kinds of mortgages available today. This is because they can help more people break into the home-buying market, even those who might have been turned away by traditional lenders. Check out the list below to understand some of the most basic benefits of an FHA mortgage.

•    Easier to Qualify for – Because they’re backed by the federal government, lenders are more likely to give you the kind of loan you need. Qualification standards are more flexible compared to conventional loans.

•    Low Down Payment – FHA insured mortgages only require a 3.5% down payment, which makes it easier for people to own homes. Additionally, the 3.5% can come in the form of gifts, unlike many other loan programs.

•    Lower Credit Borrowers Qualify – Since FHA insured loans are government-backed, those with a poor credit history have an easier time getting this type of loan approved.

•    Better Interest Rates – With the federal backing, these loans often come with better interest rates than most traditional mortgage loans.

•    Better Home Stability – The FHA offers programs specifically designed to help homeowners stay in their homes during tough times. They will work with you to prevent foreclosure and offer solutions before the situation worsens. Always try to communicate openly with your lender if you encounter financial trouble.

If you're considering homeownership in Florida, FHA Loans FL offer an excellent path to securing a property with minimal barriers. Whether you're a first-time buyer or someone re-entering the market, an FHA Loan Florida could provide the flexibility and support you need. With competitive rates, low down payment options, and more accessible qualification requirements, it's no surprise that more Floridians are turning to FHA Loans FL as a trusted solution. Don't let high credit score requirements or hefty down payments stop you—explore your options with an FHA Loan Florida today and move one step closer to your dream home.

When you're applying for an FHA loan, the following list of documents will help expedite the process. We can help you understand any part of the FHA loan process, so don't hesitate to contact us with any questions.

Employment Info

• Past two years of completed tax returns.
• Past two years of W-2s, 1099s, and any other necessary tax forms.
• One month’s worth of the newest pay stubs.
• Self-employed individuals will need three years of tax returns and an YTD Profit & Loss Statement.

Savings Info

• Past three months' full bank statements for all accounts.
• Any recent statements from investment accounts (retirement, 401k, mutual funds, etc.).

Personal Info

• Driver's License or other official State identification.
• Social Security Card.
• Any Divorce, Palimony, or Alimony Documents.
• Green card or work permit (if applicable).

At our office, we specialize in guiding first-time buyers and seasoned homeowners through the full spectrum of options for FHA Loans FL. Whether you're purchasing your first property or upgrading to a new home, an FHA Loan Florida offers flexible credit requirements, low down payments, and competitive rates that make homeownership accessible for more families.

Understanding the FHA loan process can seem overwhelming at first, but with the right team by your side, it becomes clear and manageable. Our goal is to ensure you feel confident and prepared every step of the way. From gathering documents to finalizing your closing paperwork, we are here to simplify everything for you. Let us help you navigate the journey with personalized service, expert advice, and tailored solutions that match your needs. Secure your future with trusted support—reach out today to learn how FHA Loans FL could open the door to your dream home!

Check out our list of common questions related to FHA mortgages. Check out our list of common questions related to FHA mortgages.

What is the FHA?

• FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans get into homes.

What makes a FHA insured mortgage beneficial?

• A FHA insured mortgage is easy to qualify for, can be obtained with less than perfect credit, costs less and requires a smaller down-payment.

Where can I find FHA forms and other literature?

• A great source for FHA forms and information is https://www.hud.gov/topics/buying_a_home.

What is the FHA loan limit in my area?

• The loan limit across the country is different. Click here to see limits in your area.

Can I pay an FHA loan off early?

• Yes, however be sure to check the pre-payment section of your contract before signing.

Can a FHA insured loan help me lower energy costs?

• Yes, through the Energy Efficient Mortgages Program you can finance 100 percent of the cost of making your home more energy efficient. Contact us to see how.

Is there a FHA program to help me refinance my loan?

• Yes, the recently created FHASecure is one of the ways that we can help you refinance your current home loan. Contact us now to see what we can do for you.

Can I refinance a fixed rate FHA loan?

• Yes. Talk with one of our professionals today to see if refinancing makes sense for you.

What is the recommended debt-to-income ratio for FHA loans?

• The recommended debt-to-income ratio for a FHA loan is 30%.

Are FHA loans assumable?

• Absolutely, you can assume an existing FHA loan or allow a buyer to assume yours.

Will I have to pay mortgage insurance with an FHA loan?

• Yes, in fact FHA mortgages often require you to carry mortgage insurance for longer than most conventional loans.

Can I get a "fixer-upper" of a home with a FHA mortgage?

• Yes, however you might be required to fix certain problems in the home before you can get the full loan. Speak with us today for details on this.

In order to qualify for an FHA loan, a borrower typically needs to meet this criteria:

• Proven employment status of at least 2 years.
• Steady or increasing income over a 2 year period.
• History of on-time payment. No more than two missed payments on your credit.
• If you've filed for bankruptcy you must wait at least 2 years and have good credit since you filed.
• Those with foreclosures must wait at least 3 years since the most recent foreclosure.
• Monthly mortgage payment should be roughly 30% of your gross income.
• You must pay a minimum of a 3.5% down-payment.
• Agree to 2.25% in closing costs
• Only certain properties are eligible - single-family homes, condominiums, double-wide manufactured homes, modular homes and 2-4 unit properties.
• The property must be your primary residence.

What Is An FHA Streamline Refinance?

If you already have an FHA mortgage, you might qualify for an FHA Streamline Refinance. An FHA Streamline Refinance is a great way for a borrower with an existing FHA -backed mortgage to reduce their interest rate, lower their monthly payment, or possibly both—without a ton of paperwork or hassle.

Here are some really cool facts about an FHA Streamline Refinance:

• No Appraisal is required – because your loan is already guaranteed by your existing FHA loan, the FHA allows you to use your home’s original purchase price as its current value.
• You can still refinance even if you are underwater – even if you owe more than your home is worth, you might still be able to get an FHA Streamline Refinance loan.
• There is no FHA prepayment penalty to worry about.
• FHA Streamline refinance rates are generally the same as “regular” FHA loan rates.
• Employment verification is not required with an FHA Streamline Refinance – no paystubs, W-2s, or tax returns are necessary for approval.
• Income verification is not required with an FHA Streamline Refinance.
• Credit score verification is not required – instead of checking your credit, your payment history is reviewed to determine if you qualify. You must have no late payments in the last 90 days and no more than one late payment within the past 12 months.

If you’re looking to take advantage of the benefits of FHA Loans FL or considering your refinancing options with an FHA Loan Florida, an FHA Streamline Refinance could be the easiest and smartest step toward lowering your monthly costs and simplifying your mortgage.

The Refinance Must Have a "Purpose"

When applying for a Streamline Refinance, borrowers must show there’s a clear Net Tangible Benefit — in simple terms, a legitimate reason for refinancing. This ensures the new loan truly improves your financial situation. For example:

• Refinancing from an Adjustable Rate Mortgage to a Fixed Rate Loan.
• Reducing your principal, interest, and mortgage insurance costs by at least 5% or more.

If you’re exploring options for FHA Loans FL or considering a FHA Loan Florida refinance, understanding the "purpose" rule is crucial to securing approval and maximizing your financial benefits.

Your Loan Balance May Not Increase To Cover the New Loan Costs

When using FHA Loans FL, the FHA does not allow a Streamline Refinance's loan balance to increase for covering charges like origination, title, or escrow fees. The balance may rise only by the Upfront Mortgage Insurance Premium. All other costs must be paid by the borrower at closing or fully credited by the loan officer.

If you're considering a FHA Loan Florida refinance, understanding these rules helps you prepare and avoid unexpected expenses.

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.