The Florida FHA mortgage has become the best solution to the majority of first time home buyers in Florida. Florida’s FHA home loan program gives several benefits, bearing in mind the budget limitations of many homeowners who are interested in purchasing their first home. When compared with most traditional home mortgages, the FHA loan eases the process to the loan applicant. On top of that the FHA loan requires a fairly low down payment, which makes it a lot easier for homeowners that may have a tough time saving for the sizable down payment needed by standard loans.
What are the big benefits to obtaining an FHA loan in Deleon Springs?
• Secure fixed interest rates – One of the biggest advantages for the Florida FHA loan is the benefit of having a fixed 15 or 30 year interest rate. Compared to other conventional loans where the loan interest rates can vary, the rate stays the same for the full lifetime of the loan. This timeframe is generally for 30 years. Because of this provision the borrower can map out their fixed monthly installment beforehand.
• Minimum down payment – The Government insures or backs FHA loans, which means the borrower incurs very minimal charges during the process. FHA secured loans demand a minimum 3.5% financial commitment from the borrower. The mortgage does allow for the property seller to pay for all closing costs, up to 6% which can be normally enough to handle almost any property purchase.
• Not Difficult to Qualify – Prequalifying for a Florida FHA home loan is quite simple. Because it’s the FHA that insures the home loan, the financial institutions and mortgage lenders make it easier for anybody to qualify that meets the simple requirements. The primary aspects of qualifying are credit reports, income source and employment.
• Adjustable Rate Option – The FHA loan originated due to small financial restrictions of first time buyers. This is exactly why the FHA features an adjustable rate option for home buyers, which will incorporate a surprisingly low payment amount and interest rate.
• There won’t be cash reserves required – In contrast to other conventional mortgage programs, the Florida FHA mortgage is a pretty enticing option for Deleon Springs, FL first-time homeowners which have a little bit of revenue saved.
First-time buyers must know what to expect before starting the FHA loan application process. Being prepared will usually increase your opportunities in successfully getting the FHA loan approved. Here we list a number of guidelines and facts to consider.
Prior to application:
1. Debt-to-income ratio
Mindful researching needs to be done here. Mortgage lenders fluctuate on specific amounts, still a debt load that is above 41 to 45 percent is risky for an FHA loan. You should have two years of continuous employment with no unexplained breaks in job history.
2. Credit History
It is all of the tiny problems that may harm your consumer credit. Look at your earnings, credit history, along with rental history that may show on a credit score. Get every aspect taken care of, aiming for a spotless record.
3. Credit worthiness
In 2013, a credit score of 620 or greater is needed for the 3.5% downpayment with the FHA. If you have had a bankruptcy or foreclosure, you would have to have maintained a perfect FICO score since that time (4 years and 5 years respectively) irregardless of present credit rating.
FHA Mortgage Application:
• Complete the Buyer Information request, that lets us know what you have along with what you will want. This will permit the FHA mortgage loan consultant to get hold of you to discuss your objectives. Later on a full mortgage application should be done that details all about yourself, the purchaser, which will be used in deciding whether you are qualified for a mortgage loan or otherwise. The interest rate and loan terms can also be identified largely by the info in your application form, credit rating, etc.
• In the event the application is pre-approved, you will get the disclosure records that are essentially initial loan records that contain all the minute details with regards to the terms, interest levels, selling price and installments of the mortgage loan.
• This needs to be agreed upon and brought back along with other records like you bank statements, IDs, references, etc., for validation purposes. Usually these documents are prepped and readied well before the loan application is sent to the mortgage company.
• The processor double checks all verifying written documents and might request missing paperwork from the borrower if needed.
• Upon completion, the records and documents are submitted to the loan underwriter.
• The loan underwriter will be sending a Conditions List of additional missing items or records to the buyer.
• After the buyer finishes the needed items outlined, it is returned to the lender for final consent. A closing day is then scheduled.
Please Note: Once you are in contract on a home, the entire loan closure process takes roughly three weeks to a month.
A lot of questions? Be sure to call us, 7 days a week at 800-871-2636 or simply submit the quick info request form on the right side of our home page at http://fivestarsmortgage.com. Homeowners that currently have an FHA mortgage loan can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers located in more rural areas in Florida can read about the 100% USDA mortgage loan at www.usdamortgagesource.com