The Florida FHA mortgage has become the first option to many first time buyers in the State of Florida. The Florida FHA home loan program offers several advantages, paying attention to the budget constraints of many homeowners who are interested in buying their first residence. In comparison to other traditional mortgage loans, the FHA mortgage loan eases the buying process to the loan applicant. Besides that the FHA mortgage loan involves a very low down payment, which makes it much easier for homeowners that may have difficulties saving for the considerable down payment expected by customary home loans.
What are the key benefits in obtaining an FHA mortgage loan in Caryville?
• Secure fixed loan interest rates – One of the best advantages for the Florida FHA home loan is the provision of having a fixed 15 or 30 year interest rate. When compared with other traditional loans where the loan interest rates vary, the rate remains the same for the full course of the loan. This period is normally for 30 years. Because of this provision the consumer can prepare their specific fixed monthly payment up-front.
• Minimum down payment – The Federal government insures or supports FHA loans, which means the borrower incurs very nominal fees along the way. FHA home loans require a minimum 3.5% financial commitment from the applicant. The mortgage loan does support the home seller to pay all costs of closing, as much as 6% which is generally enough to handle virtually any property purchase.
• Quick to Qualify – Prequalifying for a Florida FHA loan is pretty simple and easy. Since it is the FHA that insures your home loan, the lenders and mortgage lenders make it easier for anyone to qualify when they meet the straightforward requirements. The main elements of qualifying are generally credit ranking, source of income and job history.
• Adjustable Rate Option – The FHA mortgage loan began as a result of stretched financial constraints of first-time home owners. For that reason the FHA has an adjustable rate option for home buyers, which will incorporate a surprisingly low payment amount and interest rate.
• There aren’t any cash reserves required – In comparison to many standard home loan programs, Florida’s FHA home mortgage is a particularly attractive option for Caryville first-time home owners that have a little bit of funds in the bank.
First Time home buyers have to know what to expect prior to starting the FHA home loan application process. Being prepared will often improve your odds in successfully getting the FHA home loan approved. Below we have listed some tips and items to consider.
1. Debt-to-income ratio
Careful assessment needs to be done at this point. Mortgage lenders differ on actual amounts, but a financial debt load that is higher than 41 to 45 percent is high-risk for an FHA loan. You need 2 years of consistent employment with no unexplainable gaps in job history.
2. Credit Check
It is normally the small things that could damage your credit scores. Check your income source, credit history, along with rent history that can show up on a credit report. Get all the things handled, aiming for a good record.
3. Credit score
As of 2013, a credit rating of 620 or better is necessary for the 3.5% down payment with the FHA. For those who have had a bankruptcy or foreclosure, you will have to have retained a perfect FICO score since that time (4 years and 5 years respectively) in spite of current credit rating.
FHA Mortgage Loan Application:
• Complete the Buyer Information form, that tells us just what you have and just what you need. This will allow the FHA loan specialist to call you to discuss your objectives. Later on a full application will need to be filled out that highlights everything about yourself, the applicant, which is to be used in determining whether you are qualified to receive a mortgage or otherwise. The interest rate and terms of the loan may also be identified largely by the information in your application form, credit scores, etc.
• In the event the loan application is pre-approved, you get the disclosure records which are essentially preliminary loan records which have all the minute details with regards to the terms and conditions, rates of interest, selling price and monthly payments of the mortgage.
• This needs to be signed and brought back along with other documents like bank account documents, IDs, personal references, etc., for validation purposes. Usually these documents are prepped and readied before the mortgage loan application is submitted to the mortgage lender.
• The processor reviews all confirming written documents and might request absent records from you if required.
• When completed, the records and documents are then sent to the loan underwriter.
• The loan underwriter will send a Conditions List of other missing elements or records to the purchaser.
• Once the buyer completes the desired items detailed, it is returned to the lender for final authorization. A closing day is then set.
Please Note: When you are in contract on a property, the entire loan closure process usually takes about 3 weeks to a month.
Have Questions? Please make sure to call us, 7 days a week at 800-871-2636 or simply just complete the brief information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that presently have an FHA loan can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers living in more rural locations in The state of Florida can learn more about the 100% USDA loan at www.usdamortgagesource.com