The Florida FHA mortgage has become the first choice to many first time home buyers in Florida. The Florida FHA mortgage loan program features several benefits, paying attention to the budget constraints of many homeowners who are considering buying their very first home. In comparison to other traditional mortgage loans, the FHA mortgage loan facilitates the buying process to the loan applicant. On top of that the FHA mortgage loan involves a very low down payment, which makes it much simpler for homeowners that may have problems saving for the sizeable down payment needed by old fashioned loans.
What are the most important pros to acquiring an FHA loan in Atlantic Beach?
• Secure fixed interest rates – One of the leading advantages for the Florida FHA loan is the benefit of paying a fixed 15 or 30 year interest rate. In contrast with other regular loans in which the loan interest rates change, the rate remains the same for the full span of the loan. This timeframe is commonly for 30 years. Due to this provision the consumer can plan their predetermined monthly installment in advance.
• Minimum down payment – The Federal government guarantees or backs FHA loans, therefore the borrower incurs very minimal charges in the process. FHA loans need a minimum 3.5% financial commitment from the borrower. The loan does permit the property seller to pay all closing costs, up to 6% which can be often enough to cover virtually any property sale.
• Not Hard to Qualify – Pre-Qualifying for a Florida FHA home loan is very easy. Because it’s the FHA that insures your house loan, the loan providers and banks make it feasible for anybody to qualify that meets the basic requirements. The primary elements of qualifying usually are credit scores, income source and job history.
• Adjustable Rate Option – The FHA loan originated mainly because of the tight budget restrictions of first time home buyers. For that reason the FHA has an adjustable rate option for home buyers, which calls for a very low monthly repayment and interest rate.
• No cash reserves required – In contrast with other standard loan programs, Florida’s FHA mortgage is a really attractive option for Atlantic Beach, FL first-time homeowners who have just a little funds saved.
First-time home buyers have to know what to expect before starting the FHA loan application process. Simply being prepared will always boost your opportunities in successfully having your FHA mortgage approved. Here we have listed a few tips and issues to consider.
In advance of application:
1. Debt-to-income ratio
Careful study should be done here. Lenders can vary on specific amounts, but a debt load that is above 41 to 45 percent is high risk for an FHA loan. You should have two years of continual employment with no unexplainable breaks in employment history.
2. Credit History
It is generally the tiny problems which will damage your credit score. Examine your income source, credit worthiness, together with rent history which might show on a credit report. Get all the details on the up and up, shooting for a spotless record.
3. Credit score
As of 2013, a credit score of 620 or better is required for a 3.5% down payment with the FHA. In the event you have had 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 existing credit standing.
FHA Loan Application:
• Complete the Buyer Information request, that lets us know just what you have and what you will want. It will allow the FHA mortgage professional to contact you to discuss your objectives. Afterwards a full application must be filled out that highlights all about you, the applicant, which is used in finding out whether you are qualified for a loan or otherwise. The rate and terms of the loan may also be identified largely by the details in the loan application form, credit report, etc.
• In the event the loan application is pre-approved, you get the disclosure records which are essentially initial loan documents which have all the minute details with regards to the terms and conditions, interest levels, cost and payments of the mortgage.
• This should be agreed upon and returned along with other records such as your bank account statements, IDs, individual references, etc., for validation purposes. These documents are prepped and readied ahead of the loan application is sent to the mortgage company.
• The processor double checks all confirming records and might request absent records and documents from you if need be.
• Upon completion, the documents are then sent to the underwriter.
• The loan underwriter will send a Conditions List of further missing elements or docs to the buyer.
• When the buyer completes the desired items on the list, it is delivered back to the mortgage lender for final consent. A closing date is then established.
Please Note: Once you are in contract on a residence, the whole loan closure process normally takes about three weeks to a month.
Questions or concerns? Please call us, 7 days a week at 800-871-2636 or simply just complete the short information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA mortgage loan can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers living in more rural areas in The state of Florida can read about the 100% USDA home loan at www.usdamortgagesource.com