The Florida FHA mortgage has become the best choice to most first time homeowners in Florida. Florida’s FHA loan program offers several advantages, bearing in mind the financial limitations of many homeowners who are considering buying their very first home. In comparison with other traditional home mortgages, the FHA home loan eases the buying process for the loan applicant. Aside from that the FHA mortgage involves a fairly low down payment, which makes it quite a bit easier for homeowners that may have challenges saving money for the substantial down payment expected by standard mortgage loans.
What are the biggest benefits to choosing an FHA loan in Dunnellon?
• Secure fixed loan interest rates – One of the greatest advantages of your Florida FHA loan is the benefit of having a fixed 15 or 30 year rate of interest. In comparison to other conventional loans where the interest rates change, the rate remains the same for the entire span of the mortgage loan. This period is typically for 30 years. Due to this provision the consumer can plan out their specific fixed monthly installment up-front.
• Minimal down payment – The Government insures or backs FHA loans, therefore the applicant incurs very minimal fees in the process. FHA secured loans need a minimum 3.5% investment from the borrower. The loan does permit the home seller to cover all costs of closing, anywhere up to 6% which can be usually enough to take care of just about any home sale.
• Easy to Qualify – Prequalifying for a Florida FHA mortgage loan is rather simple. Because it’s the FHA that covers your house loan, the loan providers and lending institutions make it easy for anybody to qualify when they meet the simple requirements. The biggest components of qualifying usually are history of credit, source of income and job history.
• Adjustable Rate Option – The FHA mortgage loan originated mainly because of the stretched financial restrictions of first-time home buyers. This is why the FHA has got an adjustable rate option for home buyers, which has a very low monthly repayment and interest rate.
• There aren’t cash reserves required – In contrast to other traditional loan programs, Florida’s FHA mortgage is a particularly attractive option for Dunnellon first time property owners which have a small amount of revenue in the bank.
First Time purchasers should find out what to expect before beginning the FHA loan application process. Simply being prepared will always better your opportunities in successfully getting your FHA mortgage loan approved. Here we have listed a number of tips and factors to consider.
1. Debt-to-income ratio
Careful study has to be done here. Mortgage lenders can vary on specific amounts, still a financial debt load thatâ€™s above 41 to 45 percent is risky for an FHA loan. You need 2 years of consistent employment without any unexplained breaks in employment history.
2. Credit History
It is usually the tiny problems which could hurt your credit history. Check your income, credit worthiness, in addition to rent history which might show on a credit file. Get every aspect on the up and up, concentrating on a fully clean record.
3. Overall credit score
As of 2013, a credit score of 620 or better is needed for the 3.5% downpayment with the FHA. In the event you came out of a bankruptcy or foreclosure, you would have to have retained a perfect credit history since then (4 years and 5 years respectively) irregardless of existing credit score.
FHA Mortgage Loan Application:
• Complete the Buyer Information form, which lets us know what you have and what you need. It will allow the FHA loan professional to call you to discuss your goals. Later a full mortgage application must be filled out that details all things about you, the purchaser, which is used for determining whether you are qualified for a mortgage or otherwise. The interest rate and terms of the loan can also be identified largely by the details in the loan application form, credit ranking, etc.
• In case the application is pre-approved, you will get the disclosure documents that are essentially initial loan documents that contain all the minute details with regards to the terms, interest rates, cost and installments of the home loan.
• This must be agreed upon and brought back along with other records like bank statements, IDs, individual references, etc., for verification purposes. Usually these documents are prepared and readied well before the mortgage loan application is submitted to the mortgage company.
• The processor reviews all verifying papers and may ask for absent records from you if required.
• Upon completion, the written documents are then submitted to the underwriter.
• The loan underwriter will be sending a Conditions List of additional missing elements or documents to the home buyer.
• When the buyer finishes the desired items listed, it is delivered back to the lender for final approval. A closing date is then set.
Notice: After in contract on a property, the whole loan closure process can take around 3 weeks to a month.
Questions or concerns? Please be sure to call us, 7 days a week at 800-871-2636 or simply just fill out the easy info request form on the right side of our home page at http://fivestarsmortgage.com. Homeowners that currently have an FHA mortgage can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers living in more rural areas in Florida can learn about the 100% USDA mortgage loan at www.usdamortgagesource.com