The Florida FHA mortgage is the first solution to many first time home buyers in Florida. The Florida FHA home loan program provides several advantages, keeping in mind the budget limitations of most homeowners who are considering buying their first home. In comparison with most conventional mortgage loans, the FHA mortgage loan facilitates the process for the loan applicant. Aside from that the FHA mortgage requires a fairly low down payment, which makes it a lot easier for homeowners that may have difficulty saving up the substantial down payment required by common home loans.
What are the most important advantages to obtaining an FHA mortgage loan in Bartow?
• Secure fixed loan interest rates – One of the biggest advantages of your Florida FHA home loan is the benefit of paying a fixed 15 or 30 year rate of interest. Compared with other standard loans where the interest rates vary, the rate remains the same for the total span of the mortgage loan. This period is often for 30 years. Because of this provision the consumer can map out their predetermined monthly payment beforehand.
• Minimum down payment – The Government guarantees or supports FHA loans, therefore the applicant has very little fees along the way. FHA loans call for a minimum 3.5% financial commitment from the applicant. The mortgage does allow for the property seller to cover all costs of closing, up to 6% which can be normally enough to take care of just about any property sale.
• Not Hard to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is quite straight forward. Since it is the FHA that insures your home loan, the lenders and banks make it simple for everyone to qualify when they meet the straightforward requirements. The most important components of qualifying usually are credit ratings, source of income and employment history.
• Adjustable Interest Rate Option – The FHA mortgage loan started due to stretched financial restrictions of first time home buyers. Because of this the FHA features 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 – When compared to other standard home loan programs, the Florida FHA home loan is a pretty appealing option for Bartow first-time homeowners which have a little bit of money saved.
First-time purchasers need to learn what to expect before beginning the FHA mortgage application process. Being prepared will usually raise your opportunities in successfully having your FHA mortgage loan accepted. Here we list a number of basic steps and some points to consider.
In advance of application:
1. Debt-to-income ratio
Careful analysis must be done at this point. Creditors differ on precise amounts, but a debts load thatâ€™s above 41 to 45 percent is high-risk for an FHA loan. You absolutely need two years of steady employment with no unexplained gaps in employment.
2. Credit Check
It is generally the tiny problems which may hurt your credit rating. Check your income source, credit history, together with rent history that may show up on a credit file. Get all the details on the up and up, focusing on a fully clean record.
3. Overall credit score
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 kept a perfect credit score since that time (4 years and 5 years respectively) irregardless of recent credit rating.
FHA Mortgage Loan Application:
• Complete the Buyer Information form, that tells us just what you have and just what you require. This will permit the FHA loan specialist get in touch with you to discuss your goals. Soon after a full application should be submitted that details all things about you, the purchaser, which is used for trying to figure out whether you are qualified to receive a mortgage or otherwise. The interest rate and loan terms may also be driven largely by the information in your application form, credit report, etc.
• In the event the application is preapproved, you will get the disclosure records which are essentially initial loan documents that contain all the minute details concerning the terms and conditions, rates, selling price and installments of the mortgage.
• This must be agreed upon and returned along with other documents like bank records, IDs, references, etc., for verification purposes. These documents are prepped and readied before the mortgage loan application is submitted to the mortgage company.
• The processor reviews all confirming documents and may request absent records from the borrower if required.
• When completed, the docs are submitted to the underwriter.
• The loan underwriter will send a Conditions List of additional missing elements or records to the home buyer.
• After the buyer completes the needed items on the list, it is delivered back to the mortgage lender for final affirmation. A closing day is then set.
Please Note: Once you are in contract on a home, the full loan closing process takes close to 3 weeks to a month.
Questions? Please call us, 7 days a week at 800-871-2636 or just submit the brief information request form on the right side of our home page at http://fivestarsmortgage.com. Homeowners that presently have an FHA mortgage loan can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers located in more rural areas in Florida can learn about the 100% USDA mortgage loan at www.usdamortgagesource.com