The Florida FHA mortgage is the best choice to most first time buyers in the State of Florida. Florida’s FHA mortgage loan program provides several advantages, paying attention to the budget limitations of most homeowners who are considering purchasing their very first home. When compared with most conventional home mortgages, the FHA home loan facilitates the buying process to the loan applicant. Besides that the FHA loan consists of a rather low down payment, which makes it quite a bit easier for homeowners that may have problems saving money for the huge down payment necessary by old fashioned mortgage loans.
What are the most valuable benefits in choosing an FHA mortgage loan in Delray Beach, FL?
• Secure fixed interest rates – One of the greatest advantages of a Florida FHA mortgage loan is the benefit of having a fixed 15 or 30 year rate of interest. When compared to other regular loans in which the loan interest rates vary, the rate remains the same for the entire course of the mortgage loan. This timeframe is typically for 30 years. Due to this provision the consumer can pre-plan their predetermined monthly payment before hand.
• Small down payment – The Government insures or supports FHA loans, therefore the borrower has very minimal charges during the process. FHA financial loans call for a minimum 3.5% investment from the applicant. The mortgage loan does allow for the home seller to pay all costs of closing, all the way to 6% which is frequently enough to take care of virtually any property sale.
• Easy to Qualify – Pre-Qualifying for a Florida FHA loan is very simple and easy. Since it is the FHA that covers your house loan, the creditors and banks make it easy for everyone to qualify that meets the simple requirements. The most important components of qualifying are usually credit reports, source of income and employment records.
• Adjustable Interest Rate Option – The FHA home loan originated due to the limited budget restrictions of first-time homeowners. That’s why the FHA has an adjustable rate option for home buyers, which calls for a really low monthly repayment and interest rate.
• There aren’t any cash reserves required – In contrast with many standard loan programs, the Florida FHA home loan is a pretty enticing option for Delray Beach, FL first time home-owners which have a small amount of funds saved up.
First Time home buyers should find out what to expect prior to starting the FHA home loan application process. Being prepared will always improve your chances in successfully having your FHA home loan approved. Below we have listed a few guidelines and facts to consider.
1. Debt-to-income ratio
Thorough assessment should be done at this point. Mortgage lenders can vary on actual amounts, but a financial debt load that is greater than 41 to 45 percent is high-risk for an FHA loan. You should have 2 years of regular employment with no unexplainable breaks in job history.
2. Credit History
It is usually the tiny problems that could damage your credit rating. Look at your income, credit ranking, together with rent history which may show on a credit report. Get all of it on the up and up, aiming for a good record.
3. Credit ratings
In 2013, a FICO score of 620 or greater is required for the 3.5% downpayment with the FHA. If you came out of a bankruptcy or foreclosure, you must have preserved a perfect FICO score since that time (4 years and 5 years respectively) regardless of existing credit rating.
FHA Mortgage Loan Application:
• Complete the Buyer Information form, which lets us know just what you have along with what you require. It will allow the FHA mortgage consultant to call you to discuss your goals. Later on a full mortgage application will have to be filled out that details all about yourself, the applicant, which is to be used for deciding whether you are eligible for a home loan or otherwise. The interest rate and loan terms can also be determined largely by the information in the loan application form, credit report, etc.
• In case the application is pre-approved, you get the disclosure docs which are essentially preliminary loan documents which have all the minute details in connection with terms and conditions, loan rates, cost and repayments of the mortgage loan.
• This must be signed and returned along with records like bank account documents, IDs, references, etc., for validation purposes. These documents are prepared and readied well before the loan application is submitted to the mortgage lender.
• The processor reviews all confirming written documents and may request missing documentation from the borrower if required.
• When completed, the records and documents will be submitted to the loan underwriter.
• The underwriter will be sending a Conditions List of further missing elements or records to the buyer.
• Once the buyer completes the desired items listed, it is sent back to the mortgage lender for final acceptance. A closing date is then scheduled.
Notice: After in contract on a residence, the overall loan closing process usually takes close to three weeks to a month.
Have Questions? Please make sure to call us, 7 days a week at 800-871-2636 or simply complete the speedy information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that presently have an FHA mortgage can learn about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers living in more rural locations in The state of Florida can learn more about the 100% USDA loan at www.usdamortgagesource.com