The Florida FHA mortgage is the best choice to many first time homeowners in Florida. The Florida FHA loan program provides several advantages, keeping in mind the financial constraints of many homeowners who are considering purchasing their first residence. When compared with most traditional home mortgages, the FHA home loan facilitates the purchasing process to the applicant. Also the FHA mortgage loan involves a fairly low down payment, which makes it much easier for homeowners that may have a tough time saving money for the considerable down payment needed by customary loans.
What are the important pros to obtaining an FHA mortgage loan in Clearwater?
• Secure fixed loan interest rate – One of the greatest advantages of your Florida FHA mortgage loan is the provision of paying a fixed 15 or 30 year rate of interest. Compared with other standard loans in which the loan interest rates change, the rate remains the same for the full length of the mortgage loan. This timeframe is typically for 30 years. Because of this provision the consumer can prepare their predetermined monthly payment up-front.
• Small down payment – The Government insures or supports FHA loans, therefore the applicant has very nominal charges in the process. FHA home loans demand a minimum 3.5% investment from the borrower. The mortgage does make it possible for the property seller to pay for all closing costs, all the way to 6% which can be frequently enough to cover just about any home purchase.
• Simple to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is quite simple. Because it’s the FHA that covers your home loan, the lenders and banks make it simple for anybody to qualify when they meet the base requirements. The primary components in qualifying are generally credit score, cash flow and employment records.
• Adjustable Interest Rate Option – The FHA home loan originated mainly because of the stretched financial constraints of first-time homeowners. That’s the reason the FHA features an adjustable rate option for home buyers, which features a really low monthly repayment and interest rate.
• There are not any cash reserves required – When compared to other traditional loan programs, Florida’s FHA home mortgage is a really enticing option for Clearwater, FL first-time home-owners that have just a little funds in the bank.
First-time home buyers must know what to expect prior to starting the FHA mortgage loan application process. Simply being prepared will often increase your chances in successfully getting your FHA mortgage loan accepted. Below we list some steps and things to consider.
Prior to application:
1. Debt-to-income ratio
Thorough research should be done here. Mortgage lenders vary on actual amounts, still a debt load thatâ€™s more than 41 to 45 percent is high risk for an FHA loan. You will need 2 years of regular employment without unexplained breaks in employment history.
2. Credit Check
It is all of the tiny problems which may hurt your credit score. Check your income, credit history, along with rent history that might be displayed on a credit file. Get all the details taken care of, concentrating on a clean record.
3. Credit scores
In 2013, a credit score of 620 or higher is required for the 3.5% down payment with the FHA. In the event you came out of a bankruptcy or foreclosure, you will have to have retained a perfect credit worthiness since that time (4 years and 5 years respectively) in spite of present credit standing.
FHA Mortgage Loan Application:
• Complete the Buyer Information request, that tells us just what you have and what you will want. It will permit the FHA loan consultant to contact you to discuss your primary goal. Subsequently a full application will need to be done that highlights all about yourself, the applicant, which is to be used for determining whether you are qualified to receive a mortgage loan or otherwise. The interest rate and loan terms can also be determined largely by the information in your application form, credit ranking, etc.
• In the event the application is pre-approved, you get the disclosure documents which are essentially initial loan records that have all the minute details in connection with terms and conditions, mortgage rates, cost and installment payments of the loan.
• This must be agreed upon and returned along with other records like bank account records, IDs, individual references, etc., for validation purposes. Usually these documents are prepped and readied ahead of the mortgage loan application is submitted to the mortgage lender.
• The processor reviews all verifying records and may ask for absent records from the borrower if necessary.
• When completed, the docs will be sent to the loan underwriter.
• The loan underwriter sends a Conditions List of other missing items or docs to the buyer.
• Whenever the buyer completes the needed items detailed, it is delivered back to the lender for final approval. A closing day is then scheduled.
Notice: Once you are in contract on a residence, the entire loan closing process usually takes close to three weeks to a month.
Questions or concerns? Please make sure to call us, 7 days a week at 800-871-2636 or simply complete the fast information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently have an FHA mortgage can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers living in more rural areas in The state of Florida can learn more about the 100% USDA mortgage loan at www.usdamortgagesource.com