The qualifying FHA loan Florida guidelines for a single-family home are the same nationwide however because the loan limits are determined by the county in which you are purchasing the home, they vary. The professional loan officers at 7th Level Mortgage can explain in much more detail the loan parameters and what those limits are. I have provided a chart with the loan limits by county, a variety of housing types, and the cost of local housing.
In the following counties the limit is $356,362:
- Indian River
- Santa Rosa
In the following counties the limit is $381,800:
Martin St Lucie
In the following counties the limit is $388,700:
Baker Clay Duval Nassau St Johns
In the following counties the limit is $402,500:
Broward Miami-Dade Palm Beach
In the following counties the limit is $441,600:
The limit in Collier County is $460,000 and the limit in Monroe County is $608,350.
Another factor that could influence the maximum loan size is the size of the home. The limits are set annually by the Federal Housing Finance Agency (FHFA). Geography can play a major role not only on the loan limit but whether or not the FHA will insure one of its’ loans. In Florida, hurricanes and flooding are climatic issues. The loan officers at 7th Level Mortgage will have a lot more information at his fingertips than what is provided in this article. Generally, if a property is in what has been determined by FEMA to be in a Special Flood Hazard Area, the FHA will not insure the loan. The following circumstances do apply:
- A residential building and related improvements to the Property are located within SFHA Zone A, a Special Flood Zone Area, or Zone V, a Coastal Area, and insurance under the National Flood Insurance Program (NFIP) is not available in the community;
- Or the improvements are, or are proposed to be, located within a Coastal Barrier Resource System (CBRS).
- The requirements for flood insurance for properties located in flood zones that are not SFHA Zone A, Zone V, etc. will vary depending on the nature of the property (proposed construction, existing construction, manufactured homes, etc.) We will discuss those requirements by property type in another blog post.
- For homes that do require flood insurance, FHA loan rules in HUD 4000.1 state:
- “For Properties located within an SFHA, flood insurance must be maintained for the life of the Mortgage in an amount at least equal to the lesser of:
- The outstanding balance of the Mortgage, less estimated land costs; or
- The maximum amount of the NFIP insurance available concerning the property improvements.”
The limits are set by the FHFA and the way they set them is that they cannot exceed the Nationwide Mortgage Limits or maximum LTV. The factor that the FHA uses is the median house price for a given area as determined by statute. The largest influencing factor is the limits set by Freddie Mac and Fannie Mae. As your down payment goes up, you will be able to finance more and enjoy a larger loan amount; however, the minimum down is 3.5%. The key is to keep the closing costs to a minimum because if you add them to the loan amount, the LTV will go up as will the DTI’s. The very first thing a loan officer will look at is the LTV.
Unfortunately, there is no such thing as a one size fits all loan, because, in addition to the house itself, the factors regarding down payment and DTI come to the fore. The maximum loan limit will be adjusted based on a percentage of the adjusted value of the home OR the mortgage loan limits for the county, WHICHEVER IS LESS.
On the opposite side of the spectrum are high-cost areas. That limit is set at 150% of the FHA conforming loan limit. That explains why certain areas have a low of $356,362 and a high of $608,350. The loan officers and processors at 7th Level Mortgage have received extensive training in FHA lending. If you have any more detailed questions, don’t hesitate to ask.