100 percent LTV VA Cash Out Refinance

100 percent VA cash out refinance


There are three basic VA refinance programs available today for eligible Florida homeowners. First, there is the VA IRRRL  (Interest Rate Reduction Refinance Loan) This refinance is specifically for those who already have a VA loan and are just looking to lower their interest rate with streamline documentation. This is a straight “rate and term” refinance, meaning no cash is going back to the borrower at closing. This is a great program because there is no appraisal, loan to value requirements and little qualifying hassle. The second type of VA refinance is someone who has a non-VA loan and is looking to refinance into a VA loan. This has been popular for those who wanted to refinance out of either an FHA loan or a Conventional loan with mortgage insurance. VA does not have monthly mortgage insurance (PMI)  and allows refinancing to 100% loan to value. The third type of refinance is where the Veteran wants to pull some equity from their home. They may or may not already have a VA loan. Did you know that VA is the only mortgage program around today that allows 100% cash out?

With 2015 interest rates still low and home prices up, some Veterans are taking advantage and pulling cash out for making those home improvements they have wanted to make. Other reasons for pulling cash out include debt/credit card consolidation, education costs, investments, etc. There are specific restrictions for what is defined as cash out. There are different LTV (loan-to-value) restrictions for different cash out options at Five Stars. Listed below are some of the basic VA Cash Out refinance qualifying requirements:

  • Borrowers must be currently employed.
  • 620 or better middle credit score.
  • No late payments on your mortgage over the past 12 months.
  • Must be able to document income and assets.

Some Benefits of a Florida VA Cash Out Refinance Loan:

  • Up to 100% Financing (most banks and lenders will limit homeowners to 90% LTV).
  • Closing costs can be rolled into the new loan, no out of pocket costs.
  • Super low 30 year fixed interest rates.
  • No private mortgage insurance ( PMI)
  • No prepayment penalties as with all government backed home loans.
  • Streamline documentation requirements.
  • Flexible credit requirements for borrowers with less than perfect credit.

100 Percent VA Cash Out Refinance Requirements:

In order to apply and qualify for a VA loan you will need to meet the following criteria and submit the following:

  • COE (certificate of eligibility).
  • A current home appraisal.
  • 2 years tax returns and W2 if required.
  • Bank Statements for 2 months.
  • Paystubs for 2 months.

Questions? Remember we have VA loan specialists standing by 7 days a week ready to assist you. For fast service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

What NOT to do before your closing on your new home

home buying tips florida

We all know that owning your own home is one of life’s great pleasures. Yet many home buyers make bad choices before they buy a home that make the purchase process more difficult than it needs to be. When you decide that you are going to buy a home in the near future you need to practice some basic financial discipline and more importantly,  common sense.  Below we want outline the most common mistakes, things you want to avoid doing while going through the home buying process. These tips are especially important for any first time home buyer.

  • Close credit accounts –  even if it seems positive, it can initially impact your credit score in a negative way. Leave all credit accounts alone unless your lenders advises differently.
  • Open new credit accounts or apply for credit –  Basically in a nut shell, do NOT change anything with your credit, buy or close and accounts. Keep everything the same unless your lender/bank officer says otherwise.
  • Buy a car or any taking on any new financial obligations or loans. This includes buying new furniture for your house before closing, don’t do it!
  • Change your job – this falls under the common sense category.  Please do not change employers without first discussing it with your lender.  In addition, if you receive a promotion, demotion, raise or cut in pay, notify your lender immediately as this could impact your mortgage loan approval.
  • Make all loan payments on time, don’t miss any payments on car loans, credit card bills, etc.
  • Move money around bank accounts, make random cash deposits in your bank account. Again, talk to you lender before doing anything like this, they will advise you on paper trail and documentation needed.
  • Spend your savings – your loan approval is based on your savings at the time of loan application. Save, Save, Save.

 Basically in a nut shell, do NOT change anything with your credit, buy or close and accounts. Keep everything the same.

Five Stars Mortgage is available to assist all Florida and Georgia home buyers 7 days a week. Please call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

What NOT to do before your closing on your new home


VA Home Loan Buying Process

VA home buying process


Purchasing a home can be a pain staking process,  especially when the buyer doesn’t understand all the steps involved.  The VA mortgage purchase process isn’t much different from other conventional or FHA home loans.  From start to finish, the VA closing process only has a few steps, below we will outline each.

VA Loan Pre Qualification, Initial review
The first step is the most important, you need to know where you stand in regards to mortgage approval. The entire VA application process only takes a 15 min to complete.  During the process the lender will ask for basic questions and obtain a credit report.

VA lenders are generally looking for a credit score of at least 620, although the benchmark can vary slightly.  In addition to learning about your credit profile, the mortgage company will want to have a better understanding of your home buying goals and objectives. They’ll ask about your income and your employment and try to identify any potential red flags at the outset.

VA loan pre-approval
Compared to prequalification, the VA loan pre-approval is more involved process. Lenders will want to get a much closer look at your financial situation and your ability to handle a mortgage payment. They will also collect supporting documents to prove in the information given on the application. You’ll fill out documents and paperwork, and lenders will start working to verify your income and other important information. The end result should be a pre-approval letter that details how much a lender is willing to loan, provided certain conditions are met. Preapproval letters are increasingly important in today’s housing market. Real estate agents and home sellers expect to see these letters included in an purchase offer.  Additionally , many home sellers / and their realtors won’t accept offers on a home without a copy of your preapproval letter. The VA loan pre-approval is a key step in the process, be sure you get this in advance. To get started on your Florida VA loan pre-approval, call us 7 days a week at 800-871-2636

Searching for the perfect home

Once you’ve received your VA mortgage preapproval letter, it’s time to start the house hunt. Finding a real estate agent who truly understands the VA loan program can make a tremendous difference for military borrowers. VA loans, just like USDA loans, are specialized loans that require specialized knowledge. If you need a great realtor in your Florida city, please reach out to us, we would be happy to make the connection for you! Once you find that perfect home, you will work closely with your realtor to write up an offer. In addition to no down payment and no mortgage insurance, VA loans also limit what borrowers can pay in closing costs. It’s common for VA borrowers to ask a seller to pay most, if not all, of their closing costs as part of the negotiation process. VA will permit the home seller(s) to pay buyers closing costs.  The end result of negotiations should be a purchase contract that makes sense for both parties.

VA appraisal & lender underwriting
As soon as you’re under contract to purchase a home, your lender will order the VA appraisal on the property. The appraisal has two main components, determining the fair market value for the home and making sure it meets the VA’s property requirements.

VA appraisals are typically completed and back to the lender in about 5 days. At the same time the mortgage company will be working to gather all documents and paperwork before getting your loan file  is submitted to the underwriter.

The underwriter will review the loan file and alert the loan officer if there are any missing items or additional documentation needed. It’s important for borrowers to fulfill these requests as quickly as possible as you will likely have a tight 30 day closing date.

Closing day
On closing day the buyers and sellers, and closing agent will review all the documents. Buyers want to allow a few hours to sign and review all the paperwork. Once this complete, you receive the keys to your perfect home!

Questions? We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Alachua County – Gainesville

Baker County – Macclenny

Bay County – Panama City

Bradford County – Starke

Brevard County – Titusville

Broward County – Fort Lauderdale

Calhoun County – Blountstown

Charlotte County – Punta Gorda

Citrus County – Inverness

Clay County – Green Cove Springs

Collier County – Naples

Columbia County – Lake City

De Soto County – Arcadia

Dixie County – Cross City

Duval County – Jacksonville

Escambia County – Pensacola

Flagler County – Bunnell

Franklin County – Apalachicola

Gadsden County – Quincy

Gilchrist County – Trenton

Glades County – Moore Haven

Gulf County – Port St. Joe

Hamilton County – Jasper

Hardee County – Wauchula

Hendry County – LaBelle

Hernando County – Brooksville

Highlands County – Sebring

Hillsborough County – Tampa

Holmes County – Bonifay

Indian River County – Vero Beach

Jackson County – Marianna

Jefferson County – Monticello

Lafayette County – Mayo

Lake County – Tavares

Lee County – Fort Myers

Leon County – Tallahassee

Levy County – Bronson

Liberty County – Bristol

Madison County – Madison

Manatee County – Bradenton

Marion County – Ocala

Martin County – Stuart

Miami-Dade County – Miami

Monroe County – Key West

Nassau County – Fernandina Beach

Okaloosa County – Crestview

Okeechobee County – Okeechobee

Orange County – Orlando

Osceola County – Kissimmee

Palm Beach County – West Palm Beach

Pasco County – Dade City

Pinellas County – Clearwater

Polk County – Bartow

Putnam County – Palatka

Santa Rosa County – Milton

Sarasota County – Sarasota

Seminole County – Sanford

St. Johns County – St. Augustine

St. Lucie County – Fort Pierce

Sumter County – Bushnell

Suwannee County – Live Oak

Taylor County – Perry

Union County – Lake Butler

Volusia County – DeLand

Wakulla County – Crawfordville

Walton County – De Funiak Springs

Washington County – Chipley

VA Home Loan Buying Process


2015 VA Funding Fee and Loan Amount Limits

VA funding fee 2015


Below we have listed the current VA funding fee and loan amount limits in Florida. Most VA loans will require a one time funding fee to be paid, disabled vets are exempt from paying the funding fee.  The VA Funding Fee is paid directly to the Department of Veterans Affairs and is the reason they can guarantee this no down payment mortgage program. This fee is paid so that VA eligible borrowers can enjoy loan benefits such as 100% financing and no PMI (mortgage insurance) payments.

Please see the 2015 VA funding fee Chart below. The funding fee is calculated by looking at a few factors: Loan amount, loan type (VA Purchase or VA Refinance), type of service, down payment (if any) and prior VA loan use. Take a look at the charts below to see how the VA funding fee varies based on these factors.

Purchase – First Time Use
Down Payment Active Duty/Retired Guard/Reserve
$0 Down 2.15% 2.40%
5-10% Down 1.50% 1.75%
10% or More 1.25% 1.50%


VA Purchase – Additional Use
Down Payment Active Duty/Retired Guard/Reserve
$0 Down 3.30% 3.30%
5-10% Down 1.50% 1.75%
10% or More 1.25% 1.50%


                Cashout Refinance ( Up to 100% LTV)
VA Usage Active Duty/Retired Guard/Reserve
1st Time Use 2.15% 2.40%
Additional Use 3.30% 3.30%


IRRRL (Interest Rate Reduction Refinance Loan)
VA Usage Active Duty/Retired Guard/Reserve
1st Time Use 0.5% 0.5%
Additional Use 0.5% 0.5%

How the Funding Fee is Paid:

The funding fee doesn’t need to be ‘paid’ separately and is typically rolled in the balance of the homeowners loan. This is a big benefit to buyers looking to take advantage of the 100% financing VA loan. Not only do borrowers not need to put anything down, but they can also finance the VA funding fee as well.

 VA Funding Fee Exemption:

Borrowers are exempt from paying the funding fee if they receive any disability payments from the VA or are considered at least 10% disabled Remember when using the VA home loan calculator to add the funding fee amount to loan amount.  Example: Purchase price is $100,000.  Funding fee is 2.15%.  So final loan amount is $102,150

2015 Florida VA loan amount limits by county listed below. Please call us at ph: 800-871-2636 with any questions about VA loans here in FL.  We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

County Name Single Family Home
($0 down and up to)
Max Guaranty
ALACHUA $417,000.00 $1,000,000
BAKER $417,000.00 $1,000,000
BAY $417,000.00 $1,000,000
BRADFORD $417,000.00 $1,000,000
BREVARD $417,000.00 $1,000,000
BROWARD $417,000.00 $1,000,000
CALHOUN $417,000.00 $1,000,000
CHARLOTTE $417,000.00 $1,000,000
CITRUS $417,000.00 $1,000,000
CLAY $417,000.00 $1,000,000
COLLIER $448,500.00 $1,000,000
COLUMBIA $417,000.00 $1,000,000
DESOTO $417,000.00 $1,000,000
DIXIE $417,000.00 $1,000,000
DUVAL $417,000.00 $1,000,000
ESCAMBIA $417,000.00 $1,000,000
FLAGLER $417,000.00 $1,000,000
FRANKLIN $417,000.00 $1,000,000
GADSDEN $417,000.00 $1,000,000
GILCHRIST $417,000.00 $1,000,000
GLADES $417,000.00 $1,000,000
GULF $417,000.00 $1,000,000
HAMILTON $417,000.00 $1,000,000
HARDEE $417,000.00 $1,000,000
HENDRY $417,000.00 $1,000,000
HERNANDO $417,000.00 $1,000,000
HIGHLANDS $417,000.00 $1,000,000
HILLSBOROUGH $417,000.00 $1,000,000
HOLMES $417,000.00 $1,000,000
INDIAN RIVER $417,000.00 $1,000,000
JACKSON $417,000.00 $1,000,000
JEFFERSON $417,000.00 $1,000,000
LAFAYETTE $417,000.00 $1,000,000
LAKE $417,000.00 $1,000,000
LEE $417,000.00 $1,000,000
LEON $417,000.00 $1,000,000
LEVY $417,000.00 $1,000,000
LIBERTY $417,000.00 $1,000,000
MADISON $417,000.00 $1,000,000
MANATEE $417,000.00 $1,000,000
MARION $417,000.00 $1,000,000
MARTIN $417,000.00 $1,000,000
MIAMI-DADE $417,000.00 $1,000,000
MONROE $529,000.00 $1,000,000
NASSAU $417,000.00 $1,000,000
OKALOOSA $417,000.00 $1,000,000
OKEECHOBEE $417,000.00 $1,000,000
ORANGE $417,000.00 $1,000,000
OSCEOLA $417,000.00 $1,000,000
PALM BEACH $417,000.00 $1,000,000
PASCO $417,000.00 $1,000,000
PINELLAS $417,000.00 $1,000,000
POLK $417,000.00 $1,000,000
PUTNAM $417,000.00 $1,000,000
SANTA ROSA $417,000.00 $1,000,000
SARASOTA $417,000.00 $1,000,000
SEMINOLE $417,000.00 $1,000,000
  1. JOHNS
$417,000.00 $1,000,000
  1. LUCIE
$417,000.00 $1,000,000
SUMTER $417,000.00 $1,000,000
SUWANNEE $417,000.00 $1,000,000
TAYLOR $417,000.00 $1,000,000
UNION $417,000.00 $1,000,000
VOLUSIA $417,000.00 $1,000,000
WAKULLA $417,000.00 $1,000,000
WALTON $417,000.00 $1,000,000
WASHINGTON $417,000.00 $1,000,000

2015 VA Funding Fee and Loan Amount Limits

Palm Coast, St. Augustine USDA Mortgage Company

USDA mortgage company

USDA Rural home buyers can receive up to 100% financing on their next home with a USDA Rural Loan. Many locations around St. Johns & Flagler County like St. Augustine and Palm Coast still remain mostly approved for 100% USDA Rural loans.  The USDA 502 Guaranteed home loan program was designed to assist moderate income residents in St. Johns and Flagler County in purchasing a home by providing easy approval standards and great rates. Home buyers must purchase a home within the eligible rural areas and have a household income that does not exceed the established limits for the area where the home is located. Please see the St. Johns and Flagler County USDA RD income limits here.

Some benefits of a USDA 502 Guaranteed Loan in Palm Coast, St. Augustine included:

  • Zero down payment,  Up to 100% financing.
  • Alternate credit may be accepted (includes detailed payment history on rental payments, utility bills, telephone/mobile services and television service) Please note non traditional credit can only be used if an applicant does not have a credit score. Non traditional credit can not be used to offset bad credit.  Current credit fico score requirements are 640.
  • No limit on purchase price, or loan amount limits with USDA.
  • 30 YR fixed terms. No early payoff charges.
  • Eligible property types include existing homes, new construction, Planned Unit Developments (PUD’s), eligible condominiums, short sales, foreclosures located in a USDA RD eligible locations.
  • Gift/Grant Funds and Seller Concessions are allowed for closing costs – up to 6%.
  • Not limited to first time homebuyers, any eligible homebuyer can apply even move up buyers.

USDA like all government home loans require monthly mortgage insurance.   Below you will find the current 2015 USDA mortgage insurance rates and up front funding ( Guarantee) amounts.

  • Purchases, 2.00% upfront fee paid at closing, based on the loan size
  • Refinances, 2.00% upfront fee paid at closing, based on the loan size
  • For both purchases and refinances, 0.50% annual (monthly ) fee, based on the remaining principal balance

Example: homebuyer with a $200,000 loan size in St. Augustine Florida would be required to make a $4,000 upfront mortgage insurance premium payment, plus $83.33 monthly mortgage insurance. The up front USDA mortgage premium is normally included (rolled into) the home buyers loan. The main benefit is the USDA  loan program is the monthly mortgage insurance (PMI) is almost half the costs of the FHA loan.

Palm Coast, St. Augustine home buyers interested in applying for a USDA mortgage?  We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest home loan info.

Palm Coast, St. Augustine USDA Mortgage Company

Gift Funds and Down Payment Assistance, Closing

Down Payment Assistance, DPAMany city and county mortgage down payment assistance program ( DPA / Grants) are available in Florida for qualified homebuyers. Programs like SHIP and others help first time buyers by providing funds to purchase a home in Brevard and Indian River County. These programs are more commonly used in conjunction with a FHA or Conventional loans as they require a down payments. Keep in mind, down payment assistance programs are not available to all buyers, they more geared towards first time buyers. Buyers have to meet income caps and qualifying standards. In addition, each program may have different requirements in place regarding classes, re payment time frame ( time you must live in the home) etc.  Be sure to check with your local or county agency on all the qualifying criteria.

One of the common questions we receive is whether down payment assistance or grants can be used with the USDA Rural program? Yes they can,  buyers can use these programs in conjunction with their USDA loan. However, buyer should note the USDA Rural Development loan does not require any down payment. Instead buyers will use their DPA or Grant funds to pay down their loan amount lower, or pay their closing costs, etc.  Example:  Let’s say your are a Florida homebuyer purchasing a home for $150,000 and you received $10,000 in grant money.  Instead of financing $150,000 + closing costs you will only need to finance $140,000 + closing costs – thus lowering your debt obligation and monthly expense.

As mentioned above USDA Rural Housing loans are 100% financing by default so they eliminate the need for a traditional down payment. However the USDA program ( like any mortgage)  has standard closing costs, often time 3-6% of the loan amount. The good news is USDA permits buyers to finance closing costs, assuming the home appraised value is higher than the sales price.  Example: Home sales price is $115,000, closing costs and escrows for home insurance and taxes are another $6,000.  As long as the home appraisal comes in at $121,000 or higher, all the closing costs can be included ( rolled into) the buyers loan.

Closing costs can also be paid by the home seller on behalf of the buyer – up to 6%.  USDA offers a lot of flexibility for buyers to purchase a home with little to $0 money out of pocket. So although approved grants and down payment assistance programs are permitted under the 100% USDA program, they really aren’t needed as much as other mortgage programs that require 3.5%, 5% down, etc. Keep in mind parts of Brevard County and Indian River County are still eligible for the USDA program in 2015.

What About Gift Funds?

Like above, the buyer can receive gift funds to help pay for money down or closing costs if they like. In cases where gift funds are used, homebuyers want to remember a few important requirements.

  • Gift funds must come from an eligible source like a family member.
  • Gift funds must be documented to have to come directly from the donor.
  • Gift Funds documentation should include – copy of check, copy of deposit slip from buyer account,  and possibly a copy of donors (source) bank statement.

Florida home buyers that have questions about down payment assistance programs using them and USDA, FHA or Conventional loans –  please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and  visit www.FiveStarsMortgage.com for the latest mortgage info.

Brevard County :  Cape Canaveral (Port Canaveral), Cocoa, Cocoa Beach, Grant, Indialantic, Indian Harbor Beach, Malabar, Melbourne FL, Merritt Island, Micco, Palm Bay, Palm Shores, Port St. John, Rockledge, Satellite Beach, Suntree, Titusville, Valkaria, Viera and West Melbourne.   Indian River County 7 days a week including Fellsmere, Indian River Shores, Orchid, Roseland, Sebastian and Vero Beach FLA, Gift Funds and Down Payment Assistance, Closing

Highlands, Okeechobee County USDA Loan Provider

highlands county usda loan


Highlands &  Okeechobee County  first time home buyers still have an opportunity to purchase a home with $0 down payment thanks to the Government insured USDA rural loan.  All of Highlands county and Okeechobee County IS still eligible and approved for the 100 percent USDA financing in 2015.  Including Avon Park, Lake Placid, Leisure Lakes,Sebring and Venus! USDA mortgages have many benefits in addition to being the only 100% home loan in Florida. Below we have listed a few benefits:

  • Buyer purchase a home with no money down, plus the buyers closing costs can be included into the loan or paid by the seller of behalf of the buyer. The benefits is buyers often times end up putting very little money into the transaction.  Buyers should be prepaid though to pay a refundable deposit when they go under contract ($500-$1,000)  This is customary for most purchase transactions in Florida.
  • Easy underwriting and approvals. In most cases a credit score of 640 is sufficient for approval.
  • Monthly mortgage insurance (PMI) is nearly 40% less the cost of comparable loans of FHA and Conventional loans.  If you are a homebuyer planning to do an FHA loan, be sure to take a close look at the USDA loan option simply for the cheaper mortgage insurance costs.
  • Fixed secure 30 year interest rates. No adjustable rates (ARM)  or pre payment penalties to be concerned about.
  • USDA loan pre approvals take only 20 minutes, no big obstacles to jump through.  No special class or schooling, grants, etc, needed.  Just contact below to get started today.

Contact Five Stars at ph: 800-871-2636 or visit  http://www.fivestarsmortgage.com/usda-rural-loan to learn more.

Serving all central Florida including  – Highlands County 7 days a week including Avon Park, Lake Placid, Leisure Lakes, Lorida, Sebring and Venus Okeechobee County , Cypress Quarters and Okeechobee. Highlands, Okeechobee County USDA Loan Provider


West Palm Beach FHA Mortgage Refinance Guide


West Palm Beach FHA refinance

Many West Palm Beach residents  are trying to figure out a way to trim monthly expenses as we begin 2015.  The new year is always a great time to think up new ways to reduce all your monthly reoccurring costs.  Cell phone, Cable/internet, Credit card interest, and of course your mortgage.  Taking a few minutes to compare these costs could end up saving you hundreds each month.  If you haven’t considering a refinance on your FHA mortgage, now be the time, especially if you received a FHA in the last few year.  Why?  Recent FHA mortgage insurance reductions and super low interest rates.

FHA just announced last week that starting at the end of the month, the monthly mortgage insurance rate ( MI or PMI rate) will be reduced from 1.35% to .85%.   Please read more about  FHA plans to reduce mortgage insurance here.  This is huge for West Palm Beach homeowners that received a FHA over the last few years at the higher 1.35% MIP rate. This is especially big news for West Palm Beach homeowners that have higher FHA loan amount – over $225,000 as their savings for be much more.  The reduction in just mortgage insurance will save the average Florida homeowner  $900 per year.  Add to this that home loan interest rates happen to be at the lowest point over a year and refinancing makes even more sense. The monthly savings of a streamline FHA refinance could amount to possibly hundreds a month.

West Palm Beach homeowners that currently have a FHA loan do not need to worry about equity requirements as homeowners can still refinance if they are upside down on their mortgage.  The FHA streamline makes refinancing easy and lifts many of the “equity barriers” with traditional mortgage programs.  No appraisal or home inspections is needed. Furthermore, the documentation process is greatly reduced and “streamlined”

Also homeowners that do have equity can inquire about the FHA cash out refinance options available in 2015. Home interest rates are so low it often makes sense to cash out equity to pay off higher interest debt like credit cards, car loans, etc.

All Florida homeowner are encouraged to contact us for more information, 7 days week. For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

Five Stars Mortgage is Florida’s local FHA loan resource serving  Palm Beach County 7 days a week –  Atlantis, Belle Glade, Boca Raton, Boynton Beach, Delray Beach, Glen Ridge, Golf, Greenacres, Gulf Stream,  Juno Beach, Jupiter, Lake Park, Lake Worth, Lantana, Loxahatchee, Manalapan, Mangonia Park, North Palm Beach, Ocean Ridge, Pahokee, Palm Beach, Palm Beach Gardens, Palm Beach Shores, Palm Springs, Riviera Beach, Royal Palm Beach, Tequesta, Wellington and West Palm Beach FL

West Palm Beach FHA Mortgage Refinance Guide

FHA Mortgage Insurance MI Going Down

FHA lower MI

FHA  (Federal Housing Administration) announced this week its plan to lower mortgage insurance premiums, a day after President Obama unveiled the effort to kick start first time buyer home purchases.  This is wonderful news for Florida first time buyers in 2015. For 30-year mortgages with less than a 5 %, the mandatory annual mortgage insurance rate of 1.35 percent of the loan balance will be cut to 0.85 percent. For FHA-insured loans with more than a 5 percent down payment, the previous 1.30 percent rate will be reduced to 0.80 percent. The chart to the left shows how much an average borrower with a $200,000 mortgage will save over the life of their loan.

But the reduced rates will not apply to borrowers with 15-year mortgages, according to a letter issued to mortgage lenders by FHA. The insurance rates on that loan product, which range from 0.45 percent to 0.95 percent of the loan balance, remain the same. The lower insurance rates on 30-year mortgages will take effect 1/26/2015. FHA said it will temporarily allow FHA purchase loan and refinancing applications now in process and that have a case number but have not closed to be canceled. Then, borrowers can restart the process and get new case numbers assigned on or after Jan. 26.  We encouraged Florida borrowers to contact us to review their options.

Below is the new mortgage insurance chart as of Jan 26, 2015 –

NEW FHA MI chart


Homeowners that have existing FHA home loans are encouraged to contact us to discuss FHA streamline refinance options.  Refinancing may make sense for many Florida homeowners stuck with the FHA higher 1.35% mortgage insurance over the last few years.  Lower mortgage insurance combined with near historic low rates could mean huge savings on monthly mortgage payments.

Call us 7 days a week at ph: 800-871-2636.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to visit www.FiveStarsMortgage.com for the latest mortgage info.

FHA Mortgage Insurance MI Going Down 2015

Teacher Home Mortgage Incentives

Florida Teacher Mortgage


Florida teachers have an assortment of home loan financing options available to them in 2015.  Many of these mortgage options are government backed programs – FHA and USDA being the most popular.  Florida teachers also have a verify down payment assistance programs available through county and city agencies and can be used in conjunction with FHA and USDA loans.  Let’s looks a breakdown of the most popular mortgage options being used to help teachers purchase a home today.

  • USDA Mortgage Financing: USDA home loans are very popular among FL Teachers and other public service workers like Police, Firefighters and EMT.  Mainly in part because USDA is the only mortgage financing option in Fla that still permits 100 percent financing.  Unless you have military benefits, USDA Rural Housing is the only $0 down payment option.  Since the program is 100% financing,  no down payment assistance is required or needed. In addition no “fist time homeowners” class or school is required.  The USDA loan pre approval process is quick, applicants can generally complete their application and pre approval in under 30 min.  Other USDA benefits include:  Seller paid closing costs up to 6%.  The USDA program is NOT limited to just first time home buyers, however, homeowners that currently own a home will face additional financing restrictions.
  • 100% financing, no first time buyers class, etc – sounds like the perfect program?  The only real down fall of the USDA loan is the program does have (2) key eligibility criteria that must be met.   First, the home you purchase must be rural eligible, and located in a approved area.  See the USDA map area here.   Second, the income for the household must be below a certain limit based on the county and number of people living in the household.   You can find the 2015 USDA household  income limits here.  If you have questions about the USDA program please contact us anytime at 800-871-2636 or just submit the request info form on this screen.
  • FHA Home Loans: FHA loans remain the most popular loan available to Florida home buyers.  FHA loans are  available for any move in condition homes, regardless of where the house is located. Like the USDA RD loan, borrowers are not required to be first time home buyers or required to take any first time buyers class, etc.   There are no income restrictions (limits) with the FHA home loan. However,  FHA loans do require a small down payment of 3.5% – but this down payment can be in the form of a gift from family, etc. Teachers can also use the verity of acceptable down payment assistance programs to pay the required 3.5% down payment and closing costs. SHIP among other down payment incentive programs can be used. Contact us today for a list of approved down payment assistance programs.
  • FHA also has the special HUD $100 down program. This FHA program is only for HUD owned homes, please see the list of HUD homes for sale here. The big advantage with the HUD 100 program is buyers can move into their home for only $100.00

Five Stars has been showing Florida Teacher the path to homeownership since 2006. Need assistance? For fast service please submit the “Request Information” form at the top right side.  Mobile users can find the short Request Info Form here.  Be sure to also visit www.FiveStarsMortgage.com for the latest mortgage info.

Serving all of Florida Teachers, including North East Florida  – Duval, Nassau, Clay, St. Johns, Baker, Bradford, Columbia, Flagler County. Teacher Home Mortgage Incentives