The Florida FHA mortgage is the best solution to most first time buyers in the State of Florida. The Florida FHA mortgage loan program offers several benefits, keeping in mind the financial difficulties of many homeowners who are considering purchasing their very first residence. In comparison with other traditional home mortgages, the FHA home loan facilitates the process to the loan applicant. Furthermore the FHA loan calls for a fairly low down payment, which makes it a lot easier for homeowners that may have difficulties saving money for the huge down payment needed by customary loans.
What are the biggest benefits to acquiring an FHA mortgage loan in Fruitland Park, FL?
• Secure fixed loan interest rates – One of the biggest advantages of the Florida FHA mortgage loan is the benefit of having a fixed 15 or 30 year rate of interest. In comparison with other regular loans where the loan interest rates vary, the rate stays the same for the full span of the mortgage loan. This period is usually for 30 years. Due to this provision the consumer can pre-plan their fixed monthly payment beforehand.
• Small down payment – The Federal government guarantees or supports FHA loans, which means the borrower has very little charges along the way. FHA home loans require a minimum 3.5% investment from the borrower. The loan does support the home seller to pay all closing costs, anywhere up to 6% which is frequently enough to take care of almost any home purchase.
• Simple to Qualify – Prequalifying for a Florida FHA loan is pretty easy. Because it’s the FHA that covers the home loan, the loan providers and mortgage lenders make it easier for anybody to qualify when they meet the simple requirements. The main elements of qualifying usually are credit scores, earnings and job history.
• Adjustable Interest Rate Option – The FHA mortgage loan began because of the limited budget constraints of first-time buyers. For this reason the FHA has got an adjustable rate option for home buyers, which will incorporate a very low payment and interest rate.
• No cash reserves required – As compared with numerous traditional home loan programs, the Florida FHA mortgage loan is a pretty attractive option for Fruitland Park first-time homeowners who have a little bit of revenue saved.
First Time purchasers must know what to expect before beginning the FHA loan application process. Being prepared will usually improve your chances in successfully getting the FHA home loan accepted. Here we list a number of basic steps and issues to consider.
In advance of application:
1. Debt-to-income ratio
Thorough evaluation needs to be done here. Mortgage companies can vary on specific amounts, still a debt load thatâ€™s above 41 to 45 percent is risky for an FHA loan. You will need two years of continuous employment without any unexplainable gaps in employment history.
2. Credit History
It is normally the small things which can harm your credit scores. Look at your income, overall credit score, together with rental history which may show up on a credit file. Get all of it on the up and up, aiming towards a completely clean record.
3. Overall credit score
As of 2013, a FICO score of 620 or better is required for the 3.5% downpayment with the FHA. If you came out of a bankruptcy or foreclosure, you will have to have retained a perfect credit ranking since then (4 years and 5 years respectively) in spite of current credit score.
FHA Mortgage Loan Application:
• Fill out the Buyer Information form, that lets us know just what you have and just what you will want. This will allow the FHA mortgage consultant to call you to discuss your objectives. Subsequently a full mortgage application will have to be filled out that highlights everything about yourself, the applicant, which is used for figuring out whether you are eligible for a mortgage loan or otherwise. The rate and terms of the loan will also be determined largely by the info in the mortgage application form, credit history, etc.
• In the event the loan application is pre-approved, you get the disclosure records which are essentially initial loan documents that have all the minute details in connection with terms and conditions, loan rates, cost and payments of the mortgage loan.
• This needs to be signed and brought back along with records like you bank account documents, IDs, personal references, etc., for validation purposes. Usually these documents are prepared and readied ahead of the loan application is submitted to the mortgage company.
• The processor reviews all confirming papers and may ask for absent paperwork from you if needed.
• Upon completion, the docs are then sent to the loan underwriter.
• The loan underwriter will be sending a Conditions List of more missing items or documents to the home buyer.
• After the buyer completes the necessary items detailed, it is delivered back to the mortgage lender for final acceptance. A closing date is then scheduled.
Notice: When you are in contract on a home, the whole loan closing process normally takes roughly 3 weeks to a month.
Still have questions? Please call us, 7 days a week at 800-871-2636 or simply just fill out the fast info request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that currently have an FHA mortgage can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers located in more rural locations in The state of Florida can learn about the 100% USDA mortgage loan at www.usdamortgagesource.com