The Florida FHA mortgage is the best solution to the majority of first time homeowners in the State of Florida. The Florida FHA mortgage loan program features several advantages, bearing in mind the funding difficulties of most homeowners who are interested in buying their first home. When compared with most conventional mortgage loans, the FHA home loan facilitates the purchasing process for the loan applicant. In addition the FHA loan requires a rather low down payment, which makes it a lot easier for homeowners that may have a tough time saving money for the big down payment necessary by customary mortgage loans.
What are the important pros in obtaining an FHA loan in Bristol?
• Secure fixed interest rates – One of the largest advantages of the Florida FHA loan is the provision of paying a fixed 15 or 30 year rate of interest. In contrast to other basic loans where the interest rates vary, the rate remains the same for the entire duration of the mortgage loan. This period is typically for 30 years. Due to this provision the consumer can plan their fixed monthly payment beforehand.
• Low down payment – The Government insures or backs FHA loans, therefore the borrower has very little fees during the process. FHA home loans require a minimum 3.5% investment from the borrower. The mortgage does make it possible for the home seller to cover all costs of closing, as much as 6% which can be usually enough to handle almost any home sale.
• Simple to Qualify – Pre-Qualifying for a Florida FHA loan is quite simple and easy. Because it’s the FHA that covers your mortgage loan, the loan providers and banks make it straightforward for anybody to qualify that meets the basic requirements. The primary aspects of qualifying are generally credit scores, source of income and employment history.
• Adjustable Rate Option – The FHA home loan originated due to tight financial restrictions of first-time home owners. This is why the FHA has got an adjustable rate option for home buyers, which entails a rather low monthly payment and interest rate.
• There won’t be cash reserves required – Compared to most standard loan programs, the Florida FHA mortgage loan is a really enticing option for Bristol first-time home-owners who have a small amount of funds saved.
First Time purchasers have to know what to expect before beginning the FHA loan application process. Simply being prepared will always better your odds in successfully getting the FHA home loan approved. Here we list a few guidelines and factors to consider.
1. Debt-to-income ratio
Careful examination should be done here. Lenders fluctuate on exact amounts, but a financial debt load that is above 41 to 45 percent is high risk for an FHA loan. You will need two years of consistent employment with no unexplainable gaps in job history.
2. Credit History
It is generally the tiny problems that could harm your consumer credit. Check your income, credit score, in addition to rental history which could show up on a credit file. Get all the details handled, aiming towards a thoroughly clean record.
3. Credit score
As of 2013, a credit score of 620 or higher is necessary for the 3.5% down payment with the FHA. For those who came out of a bankruptcy or foreclosure, you would need to have kept a perfect credit worthiness since then (4 years and 5 years respectively) regardless of recent credit score.
FHA Mortgage Application:
• Complete the Buyer Information form, that tells us what you have along with what you want. This will permit the FHA mortgage professional get in touch with you to discuss your primary goal. Afterwards a full mortgage application will need to be submitted that highlights all about you, the purchaser, which will be used in finding out whether you are qualified for a home loan or otherwise. The interest rate and terms of the loan will also be determined largely by the info in the loan application form, credit rating, etc.
• In case the loan application is preapproved, you will get the disclosure docs that are essentially preliminary loan records that contain all the minute details in connection with terms and conditions, mortgage rates, selling price and installment payments of the mortgage.
• This must be signed and returned along with other records like bank account statements, IDs, individual references, etc., for verification purposes. These documents are prepared and readied prior to when the loan application is submitted to the loan provider.
• The processor double checks all validating records and might request absent documents from the borrower if necessary.
• When completed, the docs are submitted to the underwriter.
• The loan underwriter will be sending a Conditions List of even more missing items or documents to the home buyer.
• Whenever the buyer finishes the requested items on the list, it is delivered back to the lender for final acceptance. A closing date is then scheduled.
Note: Once you are in contract on a residence, the entire loan closure process usually takes roughly three weeks to a month.
Questions? Be sure to call us, 7 days a week at 800-871-2636 or simply fill out the quick information request form on the right side of our home page at http://fivestarsmortgage.com. Homeowners that currently have an FHA home loan can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers residing in more rural areas in The state of Florida can learn more about the 100% USDA mortgage loan at www.usdamortgagesource.com