The Florida FHA mortgage is the best solution to the majority of first time home buyers in the State of Florida. The Florida FHA loan program presents several advantages, paying attention to the financial limitations of many homeowners who are interested in buying their first residence. In comparison to other traditional mortgage loans, the FHA mortgage loan facilitates the process for the loan applicant. Furthermore the FHA loan calls for a fairly low down payment, which makes it quite a bit easier for homeowners that may have trouble saving up the sizable down payment required by customary mortgage loans.
What are the main advantages in obtaining an FHA loan in Springfield?
• Secure fixed interest rate – One of the big advantages of your Florida FHA loan is the benefit of having a fixed 15 or 30 year rate of interest. In contrast with other standard loans where the loan interest rates vary, the rate remains the same for the entire length of the mortgage loan. This period is generally for 30 years. Due to this provision the consumer can pre-plan their predetermined monthly payment beforehand.
• Minimum down payment – The Federal government guarantees or supports FHA loans, therefore the applicant has very minimal fees in the process. FHA secured loans demand a minimum 3.5% investment from the borrower. The loan does permit the home seller to pay for all closing costs, as much as 6% which is generally enough to take care of virtually any home purchase.
• Easy to Qualify – Prequalifying for a Florida FHA home loan is quite simple and easy. Because it’s the FHA that covers the home loan, the creditors and mortgage lenders make it straightforward for anyone to qualify when they meet the basic requirements. The most important elements of qualifying are credit reports, income and employment history.
• Adjustable Rate Option – The FHA loan originated due to small financial constraints of first-time home buyers. That’s the reason the FHA features an adjustable rate option for home buyers, which has a surprisingly low payment and interest rate.
• There are no cash reserves required – In comparison to numerous standard loan programs, the Florida FHA home loan is a pretty appealing option for Springfield first time homeowners that have a little money saved up.
First-time home buyers must know what to expect before beginning the FHA mortgage loan application process. Being prepared will always increase your opportunities in successfully having your FHA home loan accepted. Here we have listed some simple steps and items to consider.
Prior to application:
1. Debt-to-income ratio
Cautious evaluation should be done at this point. Lenders differ on precise amounts, still a debt load that is higher than 41 to 45 percent is risky for an FHA loan. You absolutely need two years of regular employment without having any unexplained gaps in employment history.
2. Credit Check
It is normally the small things which can harm your credit scores. Check your income source, credit score, together with rent history that may be displayed on a credit file. Get every aspect handled, aiming for a fully clean record.
3. Credit score
In 2013, a FICO score of 620 or higher is required for the 3.5% down payment with the FHA. In the event you have had a bankruptcy or foreclosure, you must have maintained a perfect credit score since then (4 years and 5 years respectively) irregardless of recent credit score.
FHA Mortgage Loan Application:
• Fill out the Buyer Information form, which lets us know what you have along with what you may need. This will allow the FHA loan specialist to call you to discuss your primary goal. Subsequently a full mortgage application should be filled out that highlights everything about yourself, the purchaser, which is used for determining whether you are qualified for a home loan or otherwise. The interest rate and loan terms will also be determined largely by the details in your loan application form, credit history, etc.
• In case the application is preapproved, you get the disclosure records which are essentially initial loan documents which have all the minute details in connection with the terms and conditions, interest rates, selling price and payments of the loan.
• This needs to be signed and brought back along with documents like you bank account statements, IDs, personal references, etc., for verification purposes. Usually these documents are prepped and readied ahead of the loan application is submitted to the loan provider.
• The processor reviews all validating documents and may request absent paperwork from the borrower if required.
• Upon completion, the records and documents are submitted to the loan underwriter.
• The loan underwriter sends a Conditions List of even more missing elements or docs to the purchaser.
• After the buyer completes the requested items on the list, it is returned to the lender for final consent. A closing day is then set.
Notice: After in contract on a property, the whole loan closing process can take roughly 3 weeks to a month.
Still have questions? Be sure to call us, 7 days a week at 800-871-2636 or simply just fill out the fast information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that presently 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 places in The state of Florida can learn about the 100% USDA loan at www.usdamortgagesource.com