Skip to content
Fact Checked by Experts

FHA Loan in Broward County, Florida: Learn About the Low Down Payment Options

Broward County is a suburb of the city of Fort Lauderdale, Florida. The area has become one of the most popular places in Florida to buy a home because of its convenient location and low housing costs. Not only are there many homes for sale in Broward County, but there are also many people looking to buy them.

Located in South Florida, Broward has many different suburbs that offer various housing options, a factor that can make it easy for you to find a home that suits your needs and budget.

If you're a first-time homebuyer, you may consider applying for an FHA loan insured by the Federal Housing Administration (FHA). This specific government agency insures mortgages in the United States. The FHA loan program is one of the best options for you.

Not only does it require less paperwork, but it is also easier to get than conventional loans. You can take out an FHA loan if you've used up your "down payment" — this is the amount of money you put down on your own home.

You can also use an FHA loan if you have less than 20 percent of your home's purchase price as cash or other liquid assets such as stocks, bonds, and savings accounts. What's more, the FHA loan program offers you the best chance of finding an affordable mortgage that fits within your budget.

The FHA loan allows you to get approved for an expedited rehabilitation loan. However, qualifying for an FHA loan is not as easy as it seems.

To qualify for an FHA loan in Broward County, Florida, you must meet specific requirements and pass the required background checks. Read on if you want to know how to deposit the FHA loan money and what you need to do next!

What Is the FHA Mortgage Loan?

The FHA loan program can be a great option if you need to buy a home. The FHA loan program is designed for first-time homebuyers with limited down payments or those who have been denied traditional financing because of their credit history.

The FHA loan is a low-down payment and low mortgage insurance required by the Federal Housing Administration. It's designed for borrowers with good credit and lower down payment than you'd find on a conventional mortgage.

This makes it an attractive option for homebuyers who want to get into the market but don't have the money saved up for a larger down payment. There are two ways to use your FHA loan:

  • You can use it as part of your down payment
  • You can pay off your mortgage immediately after closing

In both cases, the amount you'll put down will be determined by your credit score and how much debt you have in other loans. If you have no other loans, the maximum amount allowed is 5% of the purchase price of $5,000 if you buy a single-family home.

The program's goal is to provide homebuyers access to homeownership by allowing them to purchase homes with very little money. The maximum amount of your mortgage payment that can be financed with an FHA loan is 30% of the purchase price of your home.

Low Down Payment Options

FHA loan programs have a variety of down payment options to choose from. You can use your down payment funds, or that money can be used as part of your purchase price. The most common down payment option is 10 percent of the purchase price.

Sometimes, you may not even need to wait for your closing date to make this down payment because the lender will allow you to use it now and pay it off in installments over time.

The minimum down payment requirement for an FHA loan is 3.5 percent, so if you want to avoid paying any cash out of pocket, you will want to consider using an FHA loan with a lower minimum down-payment requirement. For example, if you are looking for an FHA loan with a 3 percent down payment requirement, you should look at loans made available by lenders like HomeTrust Bank and SunTrust Mortgage.

FHA loans have low minimum down payments, which means you can get into the home without putting any money down. The minimum required down payment for an FHA loan is 3.5 percent of the purchase price, but there are other ways to qualify with a smaller down payment.

The lowest down payment options are typically FHA 203(k) and conventional fixed-rate mortgages.

  • FHA 203(k) allows borrowers to make a 3.5% down payment on a home purchase of up to $453,100. That is the equivalent of no more than 5.5% of the purchase price, and it can be used in combination with another loan type such as a conventional mortgage or even FHA financing for additional down payment help. Another option for those with less than perfect credit scores is the FHA 203(f) program. This option requires a 5% down and will allow you to purchase a house with up to $294,515 in financing.

  • Conventional loans require a minimum 3.5% down payment and tend to offer higher interest rates than 203(k) loans. However, suppose you have sufficient cash available after closing costs. In that case, they can still be an affordable option for many buyers who don't qualify for an FHA loan due to low credit scores or other factors that prevent them from applying for one.

  • FHA loan program also offers loans with no credit checks or income verification requirements if you meet specific criteria and are willing to put up front money in cash or property as security for the loan. This type of loan is called an upfront cash-out refinance, and it's sometimes referred to as "no doc" or "non-recourse. When using this type of loan, borrowers do not earn any interest on their upfront investment until they sell their home after five years (at which point they may receive some interest).

If you want to buy a home with the minimum down payment of 3.5 percent, you can get pre-approved for an FHA loan with a lower credit score than 620 and still be approved for financing. If you can save up enough money for each month's mortgage payment, you'll qualify for an FHA loan at this level with no problem.

The FHA loan is not for everyone. You must meet specific qualifications, and there are some limitations on what types of properties you can buy with this program. But if you meet those requirements, it's an affordable option that can help you get into your dream home or make repairs to your existing one.

Low Down Payment Options limits for Broward County, Florida

Broward County is one of the most affordable places in Florida to buy a home and qualify for an FHA loan. The FHA loan program allows you to get a mortgage loan for up to 80% of the appraised value of your home. The appraised value is calculated by taking the market value and subtracting any outstanding liens and debts, such as taxes or insurance.

The minimum down payment for FHA loans varies depending on your credit history and your location in Florida. In Broward County, homeowners need at least 3.5% down on their first mortgage but can use gifts or other non-cash gifts for that payment if they don't have enough savings.

The county offers two programs - a 30-year fixed-rate mortgage with down payment assistance and a 4-percent interest rate, or a 15-year fixed-rate mortgage with down payment assistance only.

The latter option has the same maximum purchase price, but it requires a smaller down payment and lower closing costs — both good news for buyers who don't want to take on the debt immediately but still want to buy a home.

You must fill out an application to receive either program because they require that your loan be current before you can qualify for them.

The Low-Down Payment Options limits for Broward County are:

  • $0 down payment option.
  • 3.5 percent down payment option.
  • Three percent down payment option.

The 3.5 percent down payment option is only available to borrowers with at least 20 percent equity in their home who can prove it with a letter from their lender stating that the loan was approved before March 1, 2019.

Happy young couple welcome in their new house showing keys

How To Deposit & Use the FHA Loan Money

If you are considering getting an FHA loan, you will need to decide whether or not you want to keep the money in your house. This is because if you do not put your money in a bank account, it will be treated as cash on hand, which can cause problems when trying to get a mortgage.

This problem is solved by depositing the money into a savings or investment account. This will allow you to track how much money is deposited and by whom. If people withdraw money from these accounts without permission, more evidence will be available for law enforcement officials investigating possible fraud.

If you are looking for ways to deposit the FHA loan money, you have come to the right place! We have compiled a list of our favorite deposit options that work best for you.

Open a Bank Account

Many options are available for you, but this is one of them. The first step is to open a new bank account in your name and use it for the daily deposits of the mortgage payments you make on your new FHA loan. You can then draw out small amounts at a time, such as $20 or $50 at a time, so that it doesn't take long before you have enough money to purchase a home. You can open a bank account, deposit the money and let it sit for 60 days. Then, you will be able to find a home.

Short Sale

If you do not want to wait 60 days and need something now, the second option is to use your cash-out refinance or short sale. This will enable you to make an offer on a home that has already been approved by Fannie Mae or Freddie Mac (depending on which bank you use). The good news is that many banks currently offer cash-out refinances and short sales!

Checking Account

A checking account is one of the most common ways to deposit your FHA loan funds. You can put your money into one at a local bank or credit union and use it just like any other checking account. You'll be able to write checks and make withdrawals as needed. Some banks will even allow you to set up automatic transfers between different accounts to track all your transactions easily.

One thing to note - if you choose this option, you should be sure that the bank or credit union has enough money available in its checking account so that they don't overdraw (overdraw) it while they wait for your new loan check from FHA. Otherwise, if this happens and there isn't enough money in the account, they may close out your checking account without telling anyone else about it! Ensure that another funding source covers overdraft lines before using this deposit method!

Use Private Lenders

The final option is to use a private lender specializing in FHA loans in Broward County, Florida. These lenders typically provide borrowers with fast approvals and flexible financing options so they can purchase their dream home without waiting too long.

Who Can Qualify?

The FHA has a strong presence in Florida and the South, with more than 3,800 approved lenders. The FHA is an essential option for first-time homebuyers and those looking to purchase their first home.

To qualify for an FHA loan, you must meet specific requirements and guidelines by the United States Department of Housing and Urban Development (HUD).

Eligibility Requirements

To qualify for a low-down payment option, you must be able to make a 3% or 10% down payment, depending on your credit score and financial situation. If you are self-employed or have a bad credit history, you may be able to qualify for lower down payments.

  • The program requires that the borrower be an owner occupying their primary residence with a mortgage on it.

  • This program does not allow homeowners to refinance their existing mortgages.

  • The borrower must complete an FHA loan application, have an approved loan, and complete a down payment of 3% or $500.

  • You may have to pay higher closing costs if you have less than 20% equity in your home or a high debt-to-income ratio (DTI), or a low credit score.

  • The low down-payment option is available for properties with a down payment of 3.5% or less. This is based on the FHA loan amount and does not include an appraisal fee. The minimum FICO score for this program is 580, and the maximum purchase price is $417,000.

This program is only available to first-time homebuyers who intend to live in the property as their primary residence. Homeownership must be your primary source of income, and you must not have owned another home within the past three years.

Top 4 Activities in Broward County

Broward County is a beautiful place to live. It is the most densely populated county in Florida, with over 400,000 people per square mile. The county has many great amenities and is home to many families. here are some great activities families and kids can engage in at Broward County:

Visit the South Florida Science Center

The South Florida Science Center is located at AMNHP in Fort Lauderdale. The museum features interactive exhibits about everything from dinosaurs to space exploration. If you have little ones who love animals, this could be a great place to experience hands-on learning and playtime with all kinds of animals, including reptiles and birds.

Indulge in an assortment of Cuisines

The Hispanic population in Broward County is the largest non-white demographic group in the county, which is why many businesses cater to the people. Many restaurants in Broward County serve Hispanic cuisine, so if you're looking for something different from what you usually eat, these restaurants are perfect.

If you're looking for an excellent place to eat, look at some of these restaurants in Broward County. These restaurants have different cuisines, and trying something new is always nice. You can go with your family or friends and have fun while eating delicious food at least once a week!

Here are some famous restaurants around Broward County that serve Hispanic food:

  • Miguel's Tacos - This restaurant serves tacos and burritos. It has everything from tacos al pastor (traditional Mexican style) to chicken quesadillas and more! If you like Mexican food, then this is the place for you!

  • Cochon Butcher - Cochon Butcher is a butcher shop specializing in authentic Louisiana-style meats. The restaurant has received rave customer reviews for its quality food and service. The restaurant has a menu that includes breakfast items such as pancakes, waffles, and eggs; sandwiches such as meatball subs and roast beef sandwiches; soups; salads; and desserts such as cakes and pies. Cochon Butcher also offers burgers, including a specialty burger called the Boudin Burger, which includes boudin sausage, bacon, cheese sauce, and lettuce on a brioche bun. Cochon Butcher has been described as an "American Diner" by one customer who visited the place for breakfast.

Go to the beach

Broward County has many beaches along its coastline that you can visit when you have time off from work or school. From Ft. Lauderdale Beach to Miami Beach, there's something for everyone, no matter what time of year it is!

Visit the Zoo

Broward County is home to the Busch Gardens, a zoo that includes elephants, giraffes, lions, and more. The zoo is located on 5500 SW 328th Avenue in Pembroke Pines (just past the intersection of Sunrise Boulevard).

Wrapping Up

Broward County has various FHA loan options that allow you to make a low-down payment. The maximum allowed for these loans is 3.5 %. You can also qualify for an FHA loan with as little as 1 % down. If you have $100,000 in the bank, you could still qualify for an FHA loan with just one percent down!

The Low-Down Payment Options program allows borrowers to get into a home without putting up any money! With this program, your mortgage lender will give you a cash allowance toward closing costs and pre-paid (like utilities) in exchange for making a lower contribution toward your down payment.

This means you will not have to pay anything upfront and receive your first month's rent as part of the closing cost package! The FHA loan is an excellent option for your home purchase. And with the low-down payment options available, it's easy to see why.

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

Find The Right Mortgage

For more than 20 years, Phil have been helping customers achieve their home purchase and refinance goals by providing them with invaluable resources and support.

Schedule a FREE Consultation
Phil Ganz

Subscribe to Get Your First Time Homebuyer Checklist

Sign up for the weekly newsletter to stay up to date on the latest real estate market trends, loan news, and so much more!