The Florida FHA mortgage has become the first choice to the majority of first time home buyers in Florida. The Florida FHA loan program offers several benefits, keeping in mind the budget limits of many homeowners who are considering purchasing their very first residence. In comparison with other traditional mortgage loans, the FHA mortgage loan eases the buying process to the loan applicant. Furthermore the FHA mortgage consists of a rather low down payment, which makes it simplier and easier for homeowners that may have problems saving up the big down payment needed by old fashioned loans.
What are the main advantages in getting an FHA loan in St. Petersburg?
• Secure fixed loan interest rate – One of the biggest advantages of the Florida FHA mortgage loan is the provision of having a fixed 15 or 30 year interest rate. Compared to other traditional loans where the loan interest rates can vary, the rate stays the same for the entire duration of the mortgage loan. This timeframe is generally for 30 years. Because of this provision the consumer can plan their predetermined monthly payment beforehand.
• Low down payment – The Federal government guarantees or backs FHA loans, which means the applicant incurs very nominal charges in the process. FHA financial loans demand a minimum 3.5% investment from the borrower. The mortgage does allow for the home seller to pay all costs of closing, all the way to 6% which can be generally enough to handle almost any home purchase.
• Not Difficult to Qualify – Pre-Qualifying for a Florida FHA home loan is quite straightforward. Because it’s the FHA that insures your home loan, the creditors and mortgage lenders make it feasible for anyone to qualify that meets the simple requirements. The main components of qualifying usually are credit scores, earnings and employment records.
• Adjustable Rate Option – The FHA loan started as a result of limited budget restrictions of first-time homeowners. For that reason the FHA has an adjustable rate option for home buyers, which entails a really low payment and interest rate.
• There won’t be cash reserves required – In contrast with numerous conventional home loan programs, Florida’s FHA mortgage is a highly tempting option for St. Petersburg first-time property owners which have a little bit of income in the bank.
First-time home buyers need to know what to expect before starting the FHA home loan application process. Simply being prepared will always improve your odds in successfully getting the FHA mortgage accepted. Below we list a number of tips and some points to consider.
1. Debt-to-income ratio
Mindful research must be done at this point. Mortgage lenders differ on actual amounts, despite the fact that a debts load that is above 41 to 45 percent is high risk for an FHA loan. You will need 2 years of continuous employment devoid of unexplained breaks in job history.
2. Credit Check
It is all of the small things that can hurt your credit. Look at your earnings, credit ranking, in addition to rental history which could show on a credit score. Get all the things handled, aiming towards a spotless record.
3. Credit score
As of 2013, a credit rating of 620 or higher is required for a 3.5% downpayment with the FHA. For those who have had a bankruptcy or foreclosure, you must have retained a perfect credit ranking since that time (4 years and 5 years respectively) irrespective of recent credit standing.
FHA Mortgage Loan Application:
• Fill out the Buyer Information request, that tells us just what you have and just what you will want. It will permit the FHA mortgage consultant to contact you to discuss your objectives. Afterwards a full mortgage application should be done that details everything about you, the borrower, which will be used in finding out whether you are qualified to receive a loan or otherwise. The rate and loan terms will also be determined largely by the information in your mortgage application form, credit report, etc.
• In the event the loan application is preapproved, you get the disclosure docs which are essentially preliminary loan records that have all the minute details regarding the terms, rates, cost and monthly payments of the mortgage.
• This has to be signed and returned along with other records like you bank documents, IDs, references, etc., for verification purposes. Usually these documents are prepped and readied before the mortgage loan application is submitted to the mortgage lender.
• The processor reviews all confirming records and may request missing documents from you if needed.
• Upon completion, the records and documents are then sent to the loan underwriter.
• The underwriter sends a Conditions List of further missing elements or records to the buyer.
• Once the buyer finishes the desired items on the list, it is delivered back to the mortgage lender for final approval. A closing day is then set.
Notice: Once you are in contract on a residence, the full loan closure process can take around 3 weeks to a month.
Questions? Please call us, 7 days a week at 800-871-2636 or just submit the short info 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/. Buyers residing in more rural locations in The state of Florida can learn more about the 100% USDA home loan at www.usdamortgagesource.com