FHA Loan Requirements in Orlando: What You Need to Know
The core FHA guidelines Orlando-area buyers should understand before applying.
By Ryan Kennedy, NMLS #1434300 · Orlando Mortgage Broker, Icon Mortgage Group
The core FHA guidelines Orlando-area buyers should understand before applying.
By Ryan Kennedy, NMLS #1434300 · Orlando Mortgage Broker, Icon Mortgage Group
FHA loans remain one of the most popular first-time buyer programs in the Orlando area because the qualifying guidelines are more forgiving than conventional financing. Here's what actually matters.
FHA guidelines allow scores as low as 580 with 3.5% down. Some lenders will go lower with a larger down payment, though guidelines vary by lender on top of FHA's own minimums.
The minimum is 3.5%, and the full amount can come from a gift or an approved down payment assistance program — a common pairing for Orlando-area first-time buyers.
FHA allows higher debt-to-income ratios than many conventional programs, which can help buyers who are otherwise well-qualified but carry more monthly debt.
FHA loan limits are set annually per county and do change, so we always confirm the current limit for Orange, Seminole, Osceola, or Lake County against your purchase price rather than relying on a number that may already be outdated.
FHA loans carry an upfront mortgage insurance premium plus an annual premium, generally for the life of the loan unless you put down 10% or more (in which case it drops off after 11 years) or refinance into a different loan type later.
FHA is generally more forgiving of past bankruptcies, foreclosures, or short sales than conventional guidelines, with shorter waiting periods in many cases.