The Florida FHA mortgage has become the first option to most first time homebuyers in Florida. Florida’s FHA home loan program features several advantages, bearing in mind the funding constraints of many homeowners who are interested in buying their very first home. Compared to other traditional home mortgages, the FHA loan facilitates the process to the applicant. Furthermore the FHA loan involves a rather low down payment, which makes it easier for homeowners that may have difficulty saving money for the sizeable down payment necessary by standard home loans.
What are the primary advantages in obtaining an FHA mortgage loan in Carrabelle, FL?
• Secure fixed interest rate – One of the big advantages for the Florida FHA home loan is the benefit of paying a fixed 15 or 30 year rate of interest. Compared to other regular loans in which the interest rates can vary, the rate remains the same for the entire span of the mortgage loan. This timeframe is usually for 30 years. Because of this provision the borrower can plan out their specific fixed monthly payment ahead of time.
• Minimal down payment – The Government guarantees or supports FHA loans, therefore the borrower has very nominal fees along the way. FHA financial loans must have a minimum 3.5% investment from the applicant. The mortgage loan does allow for the home seller to pay all closing costs, all the way to 6% which can be frequently enough to cover almost any property purchase.
• Quick to Qualify – Prequalifying for a Florida FHA home loan is rather straight forward. Since it is the FHA that covers your mortgage loan, the lenders and mortgage lenders make it simple for anybody to qualify when they meet the necessary requirements. The primary components of qualifying usually are credit rating, income and employment history.
• Adjustable Interest Rate Option – The FHA home loan originated due to stretched financial restrictions of first time home owners. For this reason the FHA has an adjustable rate option for home buyers, which calls for a remarkably low payment amount and interest rate.
• There aren’t any cash reserves required – As compared with other standard mortgage programs, the Florida FHA mortgage loan is a very tempting option for Carrabelle first time home-owners who have a small amount of revenue saved.
First-time home buyers should find out what to expect before beginning the FHA loan application process. Being prepared will usually better your opportunities in successfully getting the FHA loan accepted. Here we list a number of guidelines and facts to consider.
1. Debt-to-income ratio
Thorough assessment needs to be done at this stage. Loan providers can vary on exact amounts, despite the fact that a debts load that is above 41 to 45 percent is risky for an FHA loan. You should have 2 years of steady employment without having unexplainable breaks in employment history.
2. Credit Check
It is usually the small things that could harm your consumer credit. Check your income source, overall credit score, along with rental history that may show up on a credit file. Get all of it taken care of, concentrating on a thoroughly clean record.
3. Credit score
In 2013, a credit score of 620 or greater is necessary for a 3.5% downpayment with the FHA. In case you came out of a bankruptcy or foreclosure, you would need to have retained a perfect FICO score since that time (4 years and 5 years respectively) in spite of present credit rating.
FHA Loan Application:
• Fill out the Buyer Information request, that lets us know what you have along with what you require. It will permit the FHA mortgage consultant to call you to discuss your objectives. Later a full application will need to be completed that highlights all things about you, the borrower, which is used for trying to figure out whether you are eligible for a loan or otherwise. The rate and terms of the loan can also be driven largely by the information in your mortgage application form, credit report, etc.
• In the event the loan application is preapproved, you will get the disclosure records which are essentially initial loan documents that have all the minute details concerning the terms and conditions, rates of interest, cost and installment payments of the mortgage.
• This should be signed and returned along with records like you bank account statements, IDs, references, etc., for validation purposes. These documents are prepared and readied way before the loan application is submitted to the lender.
• The processor reviews all verifying written documents and may ask for missing documents from the borrower if required.
• Upon completion, the records and documents are submitted to the underwriter.
• The underwriter sends a Conditions List of additional missing items or docs to the home buyer.
• After the buyer completes the required items on the list, it is returned to the mortgage lender for final affirmation. A closing day is then established.
Please Note: Once you are in contract on a residence, the entire loan closing process normally takes close to 3 weeks to a month.
Questions? Please be sure to call us, 7 days a week at 800-871-2636 or just fill out the brief info request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently have an FHA home loan can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers residing in more rural places in The state of Florida can learn more about the 100% USDA mortgage at www.usdamortgagesource.com