The Florida FHA mortgage has become the best solution to many first time homebuyers in the State of Florida. The Florida FHA mortgage loan program features several advantages, bearing in mind the financial limitations of many homeowners who are interested in buying their very first residence. In comparison to most conventional mortgage loans, the FHA mortgage loan eases the purchasing process to the applicant. Also the FHA mortgage consists of a rather low down payment, which makes it much easier for homeowners that may have challenges saving up the big down payment necessary by old fashioned loans.
What are the most important advantages to getting an FHA mortgage loan in Belleview?
• Secure fixed interest rate – One of the leading advantages of the Florida FHA mortgage loan is the provision of paying a fixed 15 or 30 year rate of interest. In comparison to other standard loans in which the interest rates fluctuate, the rate remains the same for the total length of the loan. This timeframe is generally for 30 years. Because of this provision the consumer can budget their fixed monthly payment before hand.
• Minimal down payment – The Federal government guarantees or supports FHA loans, which means the applicant has very minimal charges in the process. FHA home loans must have a minimum 3.5% investment from the applicant. The mortgage loan does permit the property seller to cover all closing costs, up to 6% which is generally enough to cover just about any home purchase.
• Easy to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is quite easy. Since it is the FHA that covers your home loan, the financial institutions and banks make it simple for anyone to qualify that meets the base requirements. The most important elements of qualifying are usually credit ratings, earnings and job history.
• Adjustable Interest Rate Option – The FHA mortgage loan began because of the small budget restrictions of first-time buyers. For this reason the FHA features an adjustable rate option for home buyers, which will incorporate a really low payment and interest rate.
• There aren’t cash reserves required – In comparison with most standard loan programs, Florida’s FHA home mortgage is a pretty attractive option for Belleview, FL first time property owners who have a little income saved up.
First-time buyers should find out what to expect before beginning the FHA mortgage application process. Simply being prepared will always improve your opportunities in successfully having your FHA mortgage accepted. Below we list some simple steps and facts to consider.
Prior to application:
1. Debt-to-income ratio
Mindful evaluation must be done here. Lenders vary on specific amounts, but a debts load thatâ€™s above 41 to 45 percent is high-risk for an FHA loan. You should have two years of consistent employment without having any unexplained interruptions in job history.
2. Credit Check
It is all of the small things which will harm your consumer credit. Look at your income, credit worthiness, along with rental history which may be displayed on a credit file. Get all things taken care of, focusing on a good record.
3. Credit rating
As of 2013, a FICO score of 620 or better is needed for a 3.5% downpayment with the FHA. For those who came out of a bankruptcy or foreclosure, you would have to have retained a perfect credit score since that time (4 years and 5 years respectively) irregardless of existing credit rating.
FHA Mortgage Application:
• Fill out the Buyer Information form, which tells us just what you have and what you will want. This will permit the FHA loan specialist to call you to discuss your goals. Soon after a full mortgage application should be done that highlights all about you, the applicant, which will be used for finding out whether you are qualified to receive a mortgage loan or otherwise. The rate and loan terms can also be determined largely by the info in your application form, credit standing, etc.
• In case the loan application is pre-approved, you will get the disclosure records which are essentially initial loan documents which have all the minute details with regards to the terms, mortgage rates, cost and installments of the loan.
• This needs to be signed and brought back along with other records like you bank statements, IDs, personal references, etc., for verification purposes. These documents are prepped and readied well before the mortgage loan application is submitted to the lender.
• The processor reviews all validating written documents and may ask for absent docs from the borrower if required.
• Upon completion, the written documents are then sent to the underwriter.
• The loan underwriter will send a Conditions List of even more missing elements or records to the home buyer.
• Once the buyer completes the needed items detailed, it is sent back to the lender for final approval. A closing date is then scheduled.
Note: After in contract on a property, the overall loan closure process can take close to 3 weeks to a month.
Still have questions? Please call us, 7 days a week at 800-871-2636 or simply complete the brief information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA home loan can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers living in more rural areas in Florida can learn about the 100% USDA loan at www.usdamortgagesource.com