The Florida FHA mortgage is the first solution to many first time home buyers in the State of Florida. The Florida FHA home loan program offers several benefits, bearing in mind the financial limits of most homeowners who are interested in buying their very first residence. Compared to other traditional home mortgages, the FHA home loan facilitates the purchasing process to the loan applicant. Also the FHA mortgage requires a fairly low down payment, which makes it quite a bit easier for homeowners that may have difficulties saving money for the big down payment needed by typical home loans.
What are the key pros to getting an FHA loan in Fort White, FL?
• Secure fixed interest rate – One of the best advantages of your Florida FHA mortgage loan is the provision of having a fixed 15 or 30 year rate of interest. Compared to other traditional loans where the interest rates fluctuate, the rate remains the same for the full span of the mortgage loan. This timeframe is commonly for 30 years. Due to this provision the consumer can budget their fixed monthly payment before hand.
• Small down payment – The Federal government guarantees or backs FHA loans, therefore the borrower has very minimal fees during the process. FHA home loans require a minimum 3.5% financial commitment from the borrower. The mortgage loan does allow for the home seller to cover all costs of closing, as much as 6% which is frequently enough to take care of just about any property sale.
• Simple to Qualify – Pre-Qualifying for a Florida FHA home loan is quite straight forward. Because it’s the FHA that covers your house loan, the creditors and lending institutions make it simple for anyone to qualify when they meet the primary requirements. The key aspects of qualifying are generally history of credit, income source and employment records.
• Adjustable Rate Option – The FHA loan originated mainly because of the tight budget restrictions of first-time home owners. This is why the FHA has got an adjustable rate option for home buyers, which calls for a relatively low payment and interest rate.
• There aren’t any cash reserves required – In contrast with many standard home loan programs, Florida’s FHA home loan is a really tempting option for Fort White, FL first-time property owners which have a small amount of income in the bank.
First Time buyers need to know what to expect prior to starting the FHA mortgage loan application process. Being prepared will usually enhance your odds in successfully having your FHA loan approved. Below we list a few tips and items to consider.
Prior to application:
1. Debt-to-income ratio
Mindful assessment should be done at this point. Creditors fluctuate on specific amounts, still a debt load that is above 41 to 45 percent is high-risk for an FHA loan. You absolutely need two years of continuous employment without unexplainable gaps in employment history.
2. Credit Check
It is normally the small things which will damage your credit ratings. Look at your earnings, credit, as well as rental history which may show on a credit file. Get all things on the up and up, aiming towards a good record.
3. Credit rating
In 2013, a FICO score of 620 or greater is necessary for the 3.5% downpayment with the FHA. In case you came out of a bankruptcy or foreclosure, you will have to have kept a perfect credit ranking since then (4 years and 5 years respectively) in spite of recent credit standing.
FHA Mortgage Loan Application:
• Complete the Buyer Information form, that tells us just what you have and just what you need. It will permit the FHA mortgage loan consultant to call you to discuss your primary goal. Later a full mortgage application will have to be filled out that highlights all about you, the applicant, which is used for figuring out whether you are qualified for a loan or otherwise. The interest rate and terms of the loan can also be determined largely by the details in your mortgage application form, credit rating, etc.
• In the event the loan application is preapproved, you will get the disclosure docs which are essentially initial loan records that have all the minute details in connection with the terms, rates, cost and installments of the loan.
• This needs to be agreed upon and returned along with other documents like bank account records, IDs, personal references, etc., for verification purposes. These documents are prepared and readied before the mortgage loan application is submitted to the mortgage company.
• The processor reviews all verifying papers and might request absent documents from you if need be.
• Upon completion, the docs are then submitted to the underwriter.
• The underwriter sends a Conditions List of additional missing elements or documents to the home buyer.
• Once the buyer finishes the needed items listed, it is returned to the lender for final consent. A closing date is then scheduled.
Note: Once you are in contract on a residence, the full loan closure process normally takes roughly three weeks to a month.
Have Questions? Be sure to call us, 7 days a week at 800-871-2636 or simply just fill out the speedy information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA home loan can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers residing in more rural places in Florida can learn about the 100% USDA mortgage loan at www.usdamortgagesource.com