Florida Mortgage News

First Time Home Buyer Advice – Orlando, Tampa, Jacksonville

admin — Mon, 23 Apr 2012 15:59:53 +0000

Many expert agree that now is the time to buy a home in Florida. This is especially holds true for Florida’s first time home buyers. Home prices have come down over 40% in some areas of Florida and interest rates are near historic all time lows.

Here are some tips and advice when shopping for a new home in Florida.

Everything starts with the mortgage pre approval and financing. Be sure you are working with a local Florida based lender, this is extremely important for many reasons. Being pre qualified in advance will let you know how much house you can afford, mortgage payments, expenses, etc. This will also let the home seller(s) know you are qualified. So be sure to start your home loan application first and foremost. The government loan programs ( FHA, USDA, VA) are great options for Florida first time home owners. Learn more by clicking here.
Study the actual market, Florida is filled with micro markets - what is happening in Miami can be completely different than Jacksonville for example. Some FL cities are in high demand again and home prices are actually increasing. Work with a highly trained realtor, they can provide all the information needed in your local market. If you need assistance finding a great agent in your area, please contact us – we would be happy to make the connection for you.
Buy a home you can really afford. There are tax advantages to owning a home, but, there are also on-going expenses (electricity, water, decorating, lawn care, trash pickup, etc.) that you may forget in the excitement. It’s a good idea to probably purchase a little less than you think.
Be patient – The contract approval process for distressed sales ( foreclosures and short sales) can take months to complete. Although this process has improved a lot over recent years, it still takes time. Remember that most home sales today in Florida are some form of a distressed sale – this is especially true around the major cities like Tampa, Orlando, Jacksonville and Miami.

Questions? Let us help – just contact us at the number above or submit the quick request form by clicking here

FHA Mortgage Loan MIP change 2012

admin — Tue, 03 Apr 2012 20:17:28 +0000

Thinking about applying for a Florida FHA mortgage soon? You might want to get your application and pre approval started today.

Beginning next week, the Federal Housing Administration (FHA) is changing the mortgage insurance fee chart to U.S. homeowners. For the fourth time since 2010, FHA mortgage insurance premiums are rising for all new home buyers that use FHA financing. For FHA case numbers assigned on, or after, Monday, April 9, 2012, will be two seperate changes. First, FHA Upfront Mortgage Insurance Premiums (UFMIP) will increase by 75 basis points to 1.75%, or $1,750 per $100,000 loan. Upfront Mortgage Insurance Premium is paid at closing, and most commonly added to an FHA borrower’s loan amount. The current FHA upfront mortgage insurance rate is 1%.

Second, annual FHA mortgage insurance premiums are rising ( most people know this as PMI) All new FHA-backed loans will be subject to a 10 basis point increase in annual mortgage insurance premiums, costing homeowners an extra $100 per $100,000 loan per year.

The new FHA annual mortgage insurance premium schedule follows :

15-year loan term, loan-to-value > 90% : 0.60% MIP per year
15-year loan term, loan-to-value <= 90% : 0.35% MIP per year
15-year loan term, loan-to-value <= 78% : 0.00% MIP per year
30-year loan term, loan-to-value > 95% : 1.25% MIP per year
30-year loan term, loan-to-value <= 95% : 1.20% MIP per year

The fun doesn’t stop there, for loans above $625,500, beginning with FHA Case Numbers assigned on, or after, June 11, 2012, there will be an additional 25 basis point increase in annual MIP.

To calculate your monthly MIP obligation as a FHA homeowners, multiply your starting loan size by your insurance rate from the list above, then divide by 12. Please note – the FHA mortgage insurance changes apply to new FHA Case Numbers only. If you have an FHA home loan approval in-process with your lender, or an existing FHA home loan, these MI changes do not impact you. To avoid paying the higher FHA fee’s, start your FHA mortgage application / pre approval today. Once your complete this you will be assigned a FHA Case Number and locked in at the lower premiums.

FHA makes buying a home possible for so many Florida home owners. Since conventional loans require a large down payment, FHA is often the first choice especially for Florida home buyers. One thing remains, FHA is still one of the best (and only) programs for Florida first time home owners. With only 3.5% down payment, secure fixed rates, government backed, the American dream of homeownership is very possible for most. Florida homebuyers looking to purchases just outside of the major cities (Tampa FL, Orlando FL, Jacksonville FL, Tallahassee FL, Gainesville FL) should also look into the government backed USDA home loan. USDA offers 100% financing in selected locations around Florida. Please click here to learn more.

Questions? please call us at 800-871-2636 or just submit the short request by clicking here.

Getting started – First Time Buyers

admin — Thu, 29 Mar 2012 15:24:36 +0000

First time home buyers in FL are often faced with the same question… “ how and where do I start” Below we have outlined some basic info and suggestions before you make that big leap towards homeownership. We have listed these items in order of importance, so start with #1 before proceeded to #2, etc.

Mortgage & Financing – Nearly all first time buyers must figure out finances before anything happens. Everything starts with the mortgage loan application and loan pre approval process. First thing you need to do is talk to your trusted loan advisor about the mortgage programs that best fits your needs. The most popular home loans today for first time buyers are the government backed programs like FHA, USDA and VA. To use the 100% VA loan you need to past or present military. To use the 100% USDA home loan you must be located in a Florida rural eligible area and have income under the county specific income cap. FHA is a great option without these restrictions, but you must put down a 3.5% down payment with the FHA home loan. All these programs have different “twists” to them, your loan advisor will help sort out the differences and determine what program fits you the best. Once you have chosen the mortgage program that fits your needs, it’s time for application. The application process is pretty quick, generally takes under 30 min to complete. Once you application is complete, your loan originator can discuss your qualifying amount, interest, payments, etc. Assuming you are pre qualified, you will also receive a letter stating the amount and terms.
Home search - Now that you are done with the mortgage application process, it’s time to find your prefect home! Purchasing a home involves many details and we highly recommend you have your own buyer’s agent (realtor) to have navigate through the process. Your realtor will set up showing appointments for you, check the market comps and insure the proper contract is written when the time comes. We work closely with many highly trained buyers agents throughout the state of Florida, our agents specialize with assisting first time home buyers in Florida. If you need assistance just contact us and we will be happy to make the connection for you.
After contract - Once you have picked out the perfect home and your offer has been accepted, the inspections and mortgage underwriting process start. The mortgage processing generally takes around 3-6 weeks to complete – depending on what type of loan you are doing. During this time you will work closely with your loan advisor and realtor to complete all necessary paper work and appraisal, inspections. Once everything is complete the closing happens.

Five Stars is Florida’s leading First Time Buyer resource. Please click here to learn more and to get started. Serving the entire state of FL including Ocala, Tallahassee, Gainesville, Ormond Beach, Tampa, Lakeland, Deland, Orlando.

VA home loan mortgage basics

admin — Wed, 28 Mar 2012 03:45:47 +0000

The Florida VA guaranteed home loan in one of the best loans for our active and non-active military hero’s. The VA mortgage requires No down payment and there is no PMI (Private Mortgage Insurance) saving the VA borrowers thousands during the life of the loan.

The VA loan program can be used for both home purchases and refinancing existing home loans.

Did you know that more than 27 million veterans and active service personnel are eligible for VA financing? Yet many don’t realize that they can use this benefit to buy a home – and they can reuse the benefit to buy another home as well, even if used prior.

Additional, the Veteran’s Administration (VA) does not make loans themselves. The VA simply guarantees a loan made by the participating lender to a Veteran. It is a great benefit because the Guarantee means that they will pay the lender a percentage of the loan balance in the event of loan default. And that allows lenders to offer that great deal – 100% financing with no monthly MI.

Be mindful that the word GUARANTY does not actually guarantee the veteran will qualify for a VA home loan; a common misconception.

The VA (as with all loan programs today) does not have a minimum credit score and criteria that is required for a VA loan approval. Since 2009, many VA lenders in the U.S. have tightened their lending and credit score requirements. As a result, getting a loan without a down payment is more difficult, though one of the few remaining options for 100% financing is a VA loan. Major lending groups have generally required a minimum credit score requirement at 620.

Below we have outlined some benefits and common Q&A for the Florida VA mortgage.

100% financing
No monthly private mortgage insurance is required
Most closing costs can be paid by the home seller.
30 year fixed rates with no pre payment penalty.

Frequently asked VA loan questions:

Q: What is required to prove my record of military service?

You will be required to use Standard Form 180, Request Pertaining to Military Records, to apply for proof of military service.

Q: My spouse who has passed away was an eligible veteran. I am eligible for the home loan benefit myself?

A surviving spouse is eligible if they have not remarried, and the eligible veteran died during active duty service or as a result of a service-related disability.

Q: Is a VA loan better than a conventional mortgage?

Depends on many variables like savings, credit, etc. VA guaranteed loans offer a lower interest rate than conventional mortgages, especially with a borrower that has less than a perfect credit and is not planning on a large down payment like 20%. VA loans do not require monthly private mortgage insurance when borrowing more than 80% of a home’s value like conventional or FHA loans.

Q: How long does it take to get approved for a VA loan?

About the same as other home loan options like conventional and FHA mortgages. 30 days is the typically closing time.

Questions? Please visit us at www.FiveStarsMortgage.com for more information.

FHA STREAMLINE REFINANCING CHANGES

admin — Wed, 07 Mar 2012 01:55:42 +0000

Today, Acting Federal Housing (FHA) Commissioner Carol Galante announced significant price cuts to FHA’s Streamline Refinance Program that could benefit millions of borrowers whose mortgages are currently insured by FHA. Beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers.

To qualify, borrowers must be current on their existing FHA-insured mortgages which were endorsed on or before May 31, 2009. Late last month, FHA also announced it will increase its upfront premiums on most other loans by 75 basis points to 1.75 percent. In addition, FHA will raise annual premiums 10 basis points and 35 basis points on mortgages higher than $625,500

“This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates,” said Galante. “By significantly reducing costs for these borrowers, we can make certain they cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process.” This will provide much needed help to Florida homeowners especially.

Currently, 3.4 million households with loans endorsed on or before May 31, 2009, pay more than a five percent annual interest rate on their FHA-insured mortgages. By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year or $250 per month. FHA’s new discounted prices assume no greater risk to its Mutual Mortgage Insurance (MMI) Fund and will allow many of these borrowers to refinance into a lower cost FHA-insured mortgage without requiring additional underwriting. FHA-insured homeowners should contact their existing lender to determine their eligibility.

Last month, the Obama Administration announced a broad package of actions and legislative proposals to help responsible homeowners save thousands of dollars through refinancing. This includes the changes announced today that will benefit current FHA borrowers – particularly those whose loan value may exceed the current value of their home. By lowering monthly mortgage costs for home-owners, FHA hopes to help more borrowers stay in their homes, thereby decreasing the potential for future default and reducing losses to the Mutual Mortgage Insurance (MMI) Fund.

The changes outlined in today’s mortgagee letter apply to all mortgages insured under FHA’s Single Family Mortgage Insurance Programs except:

Title I

Home Equity Conversion Mortgages (HECM)
Section 247 (Hawaiian Homelands)
Section 248 (Indian Reservations)
Section 223(e) (Declining Neighborhoods)

Read FHA’s Mortgagee Letter on new premium changes.

The FHA streamline refinance program only applies to FHA home loans. Florida homeowners with conventional loans, please click here to learn more about the Florida HARP refinance relief program. Five Stars is Florida’s leading home loan information resource, proudly serving Jacksonville FL, Orlando FL, Tampa FL, West Palm Beach FL, Daytona Beach FL, Tallahassee FL, Gainesville FL. Learn more at www.FiveStarsMortgage.com

FHA Mortgage Insurance Going Up

admin — Wed, 29 Feb 2012 19:41:53 +0000

FHA home loans currently require a 1% onetime funding fee, plus monthly insurance (PMI) to be paid on all FHA mortgages. FHA has announced the costs of both the funding fee and monthly premiums are going up starting April 1^st

Effective April 1st

10 bps increase in annual premium for single family to 1.25% (.25 bps increase for loans above $625,500 to 1.5%)

75 bps increase in upfront premium to 1.75% (currently 1% funding fee)

Streamline FHA Refinance Change?

There is speculation of a considerable reduction in the streamline refinance premium! It would apply to FHA loans made prior to May 2009. HUD may make an announcement in the next couple of weeks.

FHA also announced possible changed coming to their seller concession policy. This is the amount or percentage of closing costs a seller can pay for a buyer. The current cap is 6% concessions towards buyers closing costs and pre paid escrow items.

Last Thursday HUD published a request for comment (30 day period) on the proposed changes to current FHA seller concession policy. Here is a summary of the anticipated changes:

Reduce the amount of permitted seller concessions to 3% or $6,000, whichever is greater

Further limits seller concessions to never exceed the borrower’s actual closing costs

Redefines what can be considered as acceptable closing costs to be paid by seller concessions to: closing costs, prepaid items, discount points, up-front MIP, and any interest rate buydown. No longer permitted are “payment supplements” such as HOA/condo fees, mortgage interest payments, and mortgage protection plans.

Redefines “interested third party” by adding lender, mortgage broker and settlement company to the list. So any contribution by these parties must be included in the amount of seller concessions.

Remember FHA mortgages require a min 3.5% down payment, plus the cost of any closing costs the sellers is not paying. Closing costs and pre paid escrow items are generally 3-5% depending on the purchase price of the home.

Buyers located the outlying areas of Florida may also want to look closer at the 100% USDA home loan. USDA Rural Housing offers 100% financing in select locations with minimal mortgage insurance. You can learn more about the NO money down USDA loan by visiting www.UsdaMortgageSource.com

Click on this link here to learn about FHA loan in Florida. Serving all of Florida 7 days a week, including Jacksonville, Orlando, Lakeland, Tampa, Daytona Beach, Gainesville – please visit www.FiveStarsMortgage.com

Home title seasoning requirement – FHA /USDA

admin — Sun, 19 Feb 2012 21:03:53 +0000

We are frequently asked questions about the FHA and USDA requirements regarding the 90 days title seasoning rule. First a little background on what title seasoning is for those that do not know –

Title seasoning refers to the amount of time a homeowner has been on the deed or held ownership in a property. Title seasoning guidelines exist to limit property flipping by investors. Most mortgages today have title seasoning guidelines (generally 90 days min) to prevent real estate investors from taking advantage of homebuyers for profit.

USDA Rural Housing Loans -

USDA does not have any specific requirements regarding title seasoning. An investor can purchase a home and turn around and re sell /flip it to you the buyer within a 90 days period. However…. the lender could require that two separate appraisals be performed on the property to insure the home value is true and accurate. Again, this is all done in an effort to protect the lender and especially the home buyer interest.

FHA Loans-

FHA states there is no 90 days seasoning requirements for investor flip properties. Please click here for more information.

However, what we find is most FHA lenders will have their own rules in ADDITION to what FHA says. This is called a “lender overlays” and it’s very common among most banks and lenders.

Example – FHA states they will insure 96.5% loans with credit scores down to 580. However, it would be difficult to find any banks or mortgage lenders willing to accept them with credit score below 600 or even 620. Same thing applies to the title seasoning requirements. FHA states that this is ok, but most FHA underwriting lenders will not accept them due to the possible incurred risk.

Keep in mind that USDA Guarantee and FHA loans are underwritten through approved lenders, not the actual FHA or USDA.

For more info on USDA mortgages in Florida, please visit www.UsdaMortgageSource.com , for FHA mortgages please visit www.FhaMortgageSource.com

Serving all of Florida 7 days week including -

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, FL

FHA Home Loan Details

admin — Wed, 15 Feb 2012 22:41:46 +0000

The FHA home loan is a mortgage that is insured by the Federal Housing Administration. The FHA does not provide money directly to borrowers; rather they insure the mortgage against a default. This makes Federal Housing Administration borrowers particularly attractive to lenders. The lenders know that if the borrower fails to pay, they can come after the FHA for a portion of their money.

Borrowers who pay a down payment of less than 20% of the principal of their home are expected to buy private mortgage insurance (PMI). FHA home loans also require a 1% funding fee that is included in the borrower new loan.

A little FHA History:

The Federal Housing Administration was conceived in 1934. In 1965, it joined with the Department of Housing and Urban Development (HUD). During its lifetime, the Federal Housing Administration has insured more than 30 million mortgages. About 800,000 people who currently hold mortgages have a loan through the Federal Housing Administration. The Federal Housing Administration operates from the proceeds of PMI purchased by home buyers whose down payment was less than 20% of the principal of the home.

Who Qualifies for the FHA Home Loan?

When most people think of a Federal Housing Administration loan, they think of the first time home buyer. Certainly the FHA enables first time home owners in Florida to purchase their home with little money down, but an FHA loan may be an option for you even if you have bought a home before. Many “move up” buyers find the FHA to be an attractive loan option.

Requirements for qualifying for a Federal Housing Administration Loan:

1. Decent credit record – generally at least a 640 credit score is required.

2. Down payment – as little as 3.5% down.

3. Job History – generally 2 year min.

3. Housing costs that equal no more than 29% of your gross annual income (if you are a first time home buyer, this rule ensures that you do not purchase too much house and get into trouble with debt)

Types of Federal Housing Loans:

By far, the most popular type of loan is the fixed rate loan (203B). This loan allows for a low down payment (3.5%), and also allows moneys used for closing to come from gifts.

Five Stars is Florida’s leading home loan information resource – serving all Florida home buyers 7 days a week. Questions about FHA loans in Florida ? Please call visit our FHA loan page here

Orlando FL, Tampa FL, Jacksonville, Daytona Beach, West Palm Beach, Miami Dade

100% USDA Rural Housing Highlights

admin — Tue, 14 Feb 2012 00:34:25 +0000

Florida first time homebuyers and current home owners should take a close look the no money down USDA mortgage.

USDA Loan Program highlights:

No Down Payment – Florida’s only true 100% home loan
Low Monthly Mortgage Insurance – Keeps your monthly payment low
No Cash Reserve Requirement
USDA 100% Financing is a top choice among Florida First Time Home Buyers
No Limitation to the purchase price or loan amount- loan is based on qualifying.
Can finance up to 102% of the appraised value
Down Payment Assistance can be used from non profits– can be used to put money down to lower loan amount.
No limits to the concessions the seller can make – seller paid closing costs
Rates are typically the same as FHA Home Loans or Conventional Mortgages

Many popular locations around Jacksonville, Tallahassee, Gainesville, Orlando, Tampa qualify for Rural Housing. Learn more by visiting www.UsdaMortgageSource.com or calling 904-302-6060

First Time Homeowners advice 2012

admin — Tue, 24 Jan 2012 04:38:12 +0000

So you are thinking about taking that big step towards first time homeownership in Florida. For many first time homebuyers the process can be overwhelming and you will have many question. This is to be expected from any first time homebuyer and to help we have outlined some tips and advice to consider before taking the plunge and purchasing your first home in Florida.

First and foremost you must remember that buying a home is the most important financial decision you will ever make. It’s important to insure you have true professionals assisting you along the way. The home buying process will generally always start with the mortgage pre approval. You must determine if you are qualified and for how much before you start looking for that special home. What type of first time buyer program mortgage will best fit your needs? FHA loan? 100% no money down USDA Rural ? Maybe if you are military the VA home loan option will be the best choice. What type of down payment or cash would be needed from you? This is an example of some of the questions involved in the mortgage loan prequalification process.

Tip #1

Insure you speak to a trained mortgage professional before contacting a realtor to show you property. Generally any home sellers will require to see that the homebuyer is pre approved for their mortgage before considering any offers. Most real estate agents will also require you have loan approval before working with you. Remember, everything starts with the mortgage financing and all parties need to insure you are qualified to close on the transaction. Take time to understand the different first time buyer programs available to you like FHA, 100% USDA Rural Housing, etc

Tip #2

Work with a local mortgage professional. If you are looking to purchase a property in Florida, insure you work with a mortgage professional located here in Florida and not a toll free call center located in Michigan. Each state has different “twists and turns” on the way mortgage financing works. Working with a mortgage advisor in your state will help insure you have smooth transaction as they know the requirements related to taxes, insurance, closing costs, etc.

Tip #3

Your realtor – this is another important part of the process for many reasons, especially for first time homeowners. Keep in mind, if you find a house you want to see, you are not required to work with the realtor that has the listing. Many first time buyers assume they must call only the realtor that is listed on the sign – this is false. Some even argue that this is bad idea as the listing realtor generally represents the home sellers interest first and foremost. We recommend that you have your own licensed Florida realtor that is representing you and only you. Your realtor can show you any home that is listed in your area regardless of the real estate company that has the sign in the yard. They can even assist you with new homebuilders. You realtor will assist you with scheduling all home showings, contract negotiations, etc. If you need assistance finding a great real estate agent in your city, just contact us and we will be happy to make the connection for you.

Tip #4

Many properties listed for sale on the market today in Florida are some form of a distressed sales or short sale, etc. These properties will require full approval by the bank before anything happens. Remember to never pay for any upfront costs like home inspection, appraisal, etc until your home contract is fully approved by the selling investor or bank. The only exception to this is the customary earnest money or “good faith” deposit. Getting the full bank approval can sometimes take months to complete depending on the bank or investor that owns the home. For short sales especially, the current home owners approval only is NOT a full approval when secondary bank approval is required. This is important to remember.

USDA Mortgage Source works with first time buyers throughout the state of Florida. 100% USDA Rural Development, FHA and VA home mortgages. Please contact us 7 days a week at 904.302.6060 and visit www.UsdaMortgageSource.com for all the latest USDA mortgage eligibility requirements here in Florida.