Florida FHA Loans Below 640 FICO :: Below > 640 or Manual Underwriting
- FHA Minimum score of 530, regardless of DU or AUS findings
- FHA requires a minimum total of 3 trade lines are required for all loans. These trades must have a 12 month payment history and may be alternative credit (if the credit report does not have 3). Alternative trade lines provided to show 12 month payment history will be reviewed by the underwriter and underwriter discretion will
be used to determine acceptability.
For Florida loan applicants with NO SCORE:
o Maximum ratios of 31/43
o 2 months PITI reserves
- Housing payment history verification is required on all FHA loans, regardless of
AUS findings. Acceptable forms are: Management Company VOR verifiable 12 months cancelled rent checks with consistent and on time payments OR 12 months bank statements showing consistent monthly payments. Unverifiable Florida rental housing or living rent free, loan will require additional reserves.
- For all Florida FHA loan applications with unverifiable housing or cash rental payments or are currently living rent free the loan applicant must have 6 months liquid PITI reserves after closing. This may be reduced to 3 months liquid if the borrower is not receiving a gift or grant for closing costs. (liquid = funds available in checking, savings or money market)
- Underwriter discretion will be used in determining reserve requirements on all Florida loans where the loan applicant has verified housing. This includes use of 401k funds or reserves required as a compensating factor.
- Florida Owner occupant ratios are considered, regardless of AUS findings, with non-occupant co-borrower. Maximum Occupant ratios are 45/55 or will require management approval.
- Cash back to borrower – DU approve only – anything over $5000 needs management approval after receipt of written purpose from borrower.
- Property Types Allow: SFDs (attached and detached), MFDs (2-4 unit), FHA Approved Condos, Manufactured Homes including and Modular.