The Florida FHA mortgage has become the first option to most first time home buyers in Florida. Florida’s FHA loan program presents several advantages, bearing in mind the funding difficulties of most homeowners who are interested in purchasing their very first home. Compared to other traditional home mortgages, the FHA mortgage loan facilitates the process for the applicant. Furthermore the FHA mortgage loan involves a fairly low down payment, which makes it quite a bit easier for homeowners that may have trouble saving for the sizeable down payment required by customary loans.
What are the big benefits to acquiring an FHA loan in Marathon, FL?
• Secure fixed loan interest rates – One of the big advantages for the Florida FHA loan is the benefit of paying a fixed 15 or 30 year interest rate. Compared to the other basic loans in which the interest rates vary, the rate stays the same for the total span of the mortgage. This timeframe is often for 30 years. Due to this provision the borrower can plan out their fixed monthly installment ahead of time.
• Low down payment – The Government guarantees or backs FHA loans, therefore the applicant has very little charges in the process. FHA mortgage loans need a minimum 3.5% investment from the borrower. The loan does allow for the home seller to pay for all costs of closing, as much as 6% which is typically enough to cover almost any property purchase.
• Easy to Qualify – Pre-Qualifying for a Florida FHA loan is very straight forward. Since it is the FHA that covers the home loan, the loan providers and mortgage lenders make it simple for anybody to qualify when they meet the straightforward requirements. The biggest elements of qualifying usually are history of credit, cash flow and job history.
• Adjustable Interest Rate Option – The FHA home loan began due to limited budget restrictions of first time home owners. That’s the reason the FHA has got an adjustable rate option for home buyers, which has a surprisingly low monthly payment and interest rate.
• There aren’t any cash reserves required – As compared with other conventional home loan programs, Florida’s FHA home loan is a pretty tempting option for Marathon first time home owners that have a small amount of income saved.
First Time purchasers need to know what to expect before beginning the FHA home loan application process. Simply being prepared will always better your chances in successfully getting your FHA mortgage approved. Here we list a few steps and some things to consider.
Prior to application:
1. Debt-to-income ratio
Thorough analysis needs to be done at this point. Mortgage companies fluctuate on precise amounts, but a debts load that is greater than 41 to 45 percent is risky for an FHA loan. You will need 2 years of continuous employment with no unexplainable gaps in employment.
2. Credit History
It is normally the small things that could damage your credit. Look at your earnings, overall credit score, as well as rent history which can show on a credit file. Get all of it taken care of, shooting for a completely clean record.
3. Credit ratings
As of 2013, a credit score of 620 or better is required for the 3.5% downpayment with the FHA. In the event you have had a bankruptcy or foreclosure, you will have to have retained a perfect credit score since then (4 years and 5 years respectively) in spite of recent credit worthiness.
FHA Mortgage Application:
• Complete the Buyer Information request, that lets us know what you have along with what you will want. This will allow the FHA mortgage professional to contact you to discuss your primary goal. Subsequently a full mortgage application should be submitted that highlights all things about yourself, the purchaser, which is used for figuring out whether you are qualified for a mortgage loan or otherwise. The rate and terms of the loan can also be determined largely by the info in the loan application form, credit score, etc.
• In case the application is preapproved, you get the disclosure records that are essentially initial loan records which have all the minute details with regards to the terms and conditions, rates, selling price and monthly payments of the mortgage loan.
• This must be agreed upon and brought back along with other records like you bank statements, IDs, references, etc., for validation purposes. These documents are prepped and readied ahead of the mortgage loan application is sent to the mortgage company.
• The processor reviews all validating written documents and might request absent records and documents from the borrower if needed.
• When completed, the documents will be sent to the loan underwriter.
• The loan underwriter will send a Conditions List of further missing items or documents to the buyer.
• After the buyer completes the desired items on the list, it is delivered back to the mortgage lender for final consent. A closing date is then established.
Note: When you are in contract on a home, the whole loan closure process normally takes around 3 weeks to a month.
Have Questions? Please make 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 home loan can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers living in more rural locations in Florida can learn about the 100% USDA loan at www.usdamortgagesource.com