The Florida FHA mortgage has become the first choice to most first time homebuyers in Florida. The Florida FHA loan program features several benefits, bearing in mind the funding difficulties of most homeowners who are interested in buying their first home. When compared with most traditional mortgage loans, the FHA loan facilitates the purchasing process for the loan applicant. Besides that the FHA loan consists of a fairly low down payment, which makes it easier for homeowners that may have difficulty saving up the large down payment needed by typical home loans.
What are the important advantages in choosing an FHA loan in Chattahoochee, FL?
• Secure fixed loan interest rate – One of the leading advantages of the Florida FHA loan is the benefit of paying a fixed 15 or 30 year interest rate. Compared with other standard loans in which the interest rates vary, the rate remains the same for the entire lifetime of the mortgage. This timeframe is normally for 30 years. Due to this provision the consumer can plan out their specific fixed monthly installment beforehand.
• Minimum down payment – The Federal government guarantees or supports FHA loans, therefore the applicant incurs very little charges during the process. FHA mortgage loans must have a minimum 3.5% investment from the applicant. The mortgage does permit the home seller to cover all closing costs, all the way to 6% which is usually enough to handle just about any property sale.
• Simple to Qualify – Prequalifying for a Florida FHA home loan is pretty effortless. Since it is the FHA that covers your mortgage loan, the loan providers and mortgage lenders make it simple for anyone to qualify when they meet the primary requirements. The primary components of qualifying are generally credit score, cash flow and employment records.
• Adjustable Interest Rate Option – The FHA mortgage loan originated due to stretched budget constraints of first-time homeowners. For that reason the FHA has an adjustable rate option for home buyers, which entails a remarkably low monthly repayment and interest rate.
• There are no cash reserves required – In comparison with most standard mortgage programs, the Florida FHA home mortgage is a pretty appealing option for Chattahoochee, FL first-time home-owners that have a little bit of income saved up.
First-time buyers need to learn what to expect before beginning the FHA mortgage loan application process. Being prepared will usually improve your opportunities in successfully getting the FHA loan approved. Here we list a few tips and factors to consider.
Prior to application:
1. Debt-to-income ratio
Careful study has to be done here. Lenders can vary on specific amounts, still a debts load thatâ€™s more than 41 to 45 percent is high risk for an FHA loan. You need 2 years of regular employment without having any unexplainable interruptions in employment.
2. Credit Check
It is typically the small things that can damage your credit ratings. Look at your income, credit ranking, in addition to rental history which can show up on a credit report. Get every aspect on the up and up, shooting for a fully clean record.
3. Credit scores
In 2013, a credit rating of 620 or greater is needed for a 3.5% downpayment with the FHA. For those who came out of a bankruptcy or foreclosure, you must have maintained a perfect credit history since then (4 years and 5 years respectively) irrespective of current credit worthiness.
FHA Mortgage Loan Application:
• Complete the Buyer Information request, which tells us just what you have along with what you require. It will allow the FHA mortgage loan specialist to contact you to discuss your primary goal. Afterwards a full mortgage application must be filled out that details all things about yourself, the purchaser, which is used for determining whether you are eligible for a mortgage or otherwise. The rate and terms of the loan will also be driven largely by the info in the application form, credit score, etc.
• In the event the application is preapproved, you get the disclosure records that are essentially initial loan records which have all the minute details with regards to the terms and conditions, rates of interest, cost and monthly payments of the mortgage loan.
• This should be signed and brought back along with other records like bank account statements, IDs, personal references, etc., for validation purposes. These documents are prepared and readied before the mortgage loan application is sent to the mortgage lender.
• The processor double checks all validating records and might request missing documentation from you if necessary.
• Upon completion, the documents are then submitted to the underwriter.
• The underwriter sends a Conditions List of other missing elements or docs to the home buyer.
• Once the buyer completes the necessary items detailed, it is delivered back to the mortgage lender for final authorization. A closing day is then scheduled.
Notice: Once you are in contract on a home, the entire loan closing process usually takes roughly 3 weeks to a month.
Questions? Be sure to call us, 7 days a week at 800-871-2636 or simply just submit the speedy information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently have an FHA home loan can learn about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers located in more rural places in The state of Florida can learn more about the 100% USDA mortgage loan at www.usdamortgagesource.com