The Florida FHA mortgage is the best option to most first time home buyers in Florida. The Florida FHA mortgage loan program provides several benefits, paying attention to the budget limits of most homeowners who are considering buying their very first residence. Compared to other conventional mortgage loans, the FHA mortgage loan eases the buying process to the loan applicant. On top of that the FHA mortgage loan calls for a fairly low down payment, which makes it less difficult for homeowners that may have difficulty saving up the big down payment necessary by traditional home loans.
What are the most common advantages in obtaining an FHA loan in Anthony?
• Secure fixed interest rates – One of the biggest advantages of a Florida FHA home loan is the provision of paying a fixed 15 or 30 year interest rate. Compared with other traditional loans where the interest rates fluctuate, the rate continues to be the same for the total duration of the loan. This period is commonly for 30 years. Due to this provision the borrower can map out their specific fixed monthly payment before hand.
• Small down payment – The Federal government insures or supports FHA loans, therefore the applicant incurs very minimal fees along the way. FHA mortgages demand a minimum 3.5% financial commitment from the applicant. The mortgage loan does make it possible for the property seller to pay all costs of closing, up to 6% which is typically enough to cover virtually any property sale.
• Simple to Qualify – Pre-Qualifying for a Florida FHA loan is quite simple and easy. Since it is the FHA that insures your home loan, the loan providers and mortgage lenders make it easy for anyone to qualify that meets the central requirements. The key elements of qualifying are generally credit score, income and employment history.
• Adjustable Interest Rate Option – The FHA loan began as a result of tight budget constraints of first-time home owners. For this reason the FHA features an adjustable rate option for home buyers, which will incorporate a rather low payment amount and interest rate.
• There are no cash reserves required – When compared to many traditional loan programs, Florida’s FHA mortgage loan is a pretty appealing option for Anthony first-time property owners which have a small amount of funds saved up.
First Time purchasers should find out what to expect before starting the FHA mortgage application process. Simply being prepared will often boost your odds in successfully getting the FHA mortgage loan accepted. Here we have listed some simple steps and issues to consider.
1. Debt-to-income ratio
Cautious examination needs to be done at this stage. Lenders vary on specific amounts, despite the fact that a financial debt load that is higher than 41 to 45 percent is risky for an FHA loan. You should have two years of regular employment without any unexplainable interruptions in employment.
2. Credit History
It is usually the tiny problems that could damage your credit scores. Look at your income source, credit worthiness, as well as rental history that can be displayed on a credit file. Get all the details handled, shooting for a good record.
3. Credit scores
In 2013, a FICO score of 620 or higher is needed for the 3.5% down payment with the FHA. In case you came out of a bankruptcy or foreclosure, you will have to have maintained a perfect credit standing since then (4 years and 5 years respectively) in spite of current credit standing.
FHA Loan Application:
• Fill out the Buyer Information form, which lets us know what you have and what you need. It will permit the FHA mortgage loan professional to call you to discuss your primary goal. Soon after a full application must be filled out that highlights all things about you, the borrower, which is to be used in figuring out whether you are eligible for a home loan or otherwise. The interest rate and terms of the loan may also be identified largely by the info in the mortgage application form, credit scores, etc.
• In case the loan application is pre-approved, you get the disclosure docs which are essentially preliminary loan documents which have all the minute details regarding the terms, interest rates, selling price and installments of the home loan.
• This should be signed and brought back along with other records like bank documents, IDs, references, etc., for validation purposes. These documents are prepped and readied prior to when the mortgage loan application is sent to the mortgage company.
• The processor reviews all verifying documents and may request absent records and documents from you if required.
• Upon completion, the records are sent to the underwriter.
• The underwriter will be sending a Conditions List of even more missing elements or records to the buyer.
• When the buyer finishes the requested items on the list, it is sent back to the mortgage lender for final affirmation. A closing date is then scheduled.
Please Note: Once you are in contract on a home, the full loan closure process can take around three weeks to a month.
Questions or concerns? Be sure to call us, 7 days a week at 800-871-2636 or simply just submit the speedy info request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently have an FHA mortgage can learn about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers located in more rural locations in The state of Florida can read about the 100% USDA mortgage loan at www.usdamortgagesource.com