The Florida FHA mortgage has become the best option to many first time homebuyers in Florida. The Florida FHA loan program gives several benefits, paying attention to the budget difficulties of many homeowners who are interested in purchasing their first home. In comparison with other traditional home mortgages, the FHA home loan eases the process to the applicant. Besides that the FHA mortgage loan involves a fairly low down payment, which makes it less difficult for homeowners that may have trouble saving for the considerable down payment required by common home loans.
What are the big benefits to getting an FHA loan in Mary Esther, FL?
• Secure fixed interest rates – One of the largest advantages for the Florida FHA home loan is the provision of paying a fixed 15 or 30 year interest rate. As compared to other conventional loans where the interest rates change, the rate remains the same for the full course of the loan. This period is generally for 30 years. Due to this provision the consumer can pre-plan their fixed monthly payment in advance.
• Low down payment – The Federal government insures or supports FHA loans, therefore the borrower has very minimal charges along the way. FHA home loans must have a minimum 3.5% investment from the applicant. The mortgage does allow for the home seller to pay all costs of closing, anywhere up to 6% which can be normally enough to take care of almost any home sale.
• Not Hard to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is quite straightforward. Because it’s the FHA that insures the home loan, the lenders and mortgage lenders make it straightforward for anyone to qualify when they meet the standard requirements. The most important aspects of qualifying are generally credit history, income and employment records.
• Adjustable Rate Option – The FHA loan started due to the stretched financial constraints of first time homeowners. This is the reason the FHA has an adjustable rate option for home buyers, which features a very low monthly repayment and interest rate.
• There won’t be cash reserves required – In comparison to numerous traditional home loan programs, Florida’s FHA mortgage loan is a very tempting option for Mary Esther, FL first-time home owners which have a little revenue saved up.
First Time buyers must know what to expect before beginning the FHA home loan application process. Being prepared will often better your chances in successfully getting the FHA loan approved. Below we list a few simple steps and aspects to consider.
Prior to application:
1. Debt-to-income ratio
Careful research has to be done at this stage. Mortgage companies differ on precise amounts, but a debts load thatâ€™s above 41 to 45 percent is high-risk for an FHA loan. You absolutely need two years of continual employment without any unexplained interruptions in employment.
2. Credit Check
It is typically the small things which can damage your credit scores. Look at your income, credit history, along with rent history which could be displayed on a credit report. Get all the details taken care of, aiming for a clean record.
3. Credit scores
In 2013, a FICO score of 620 or higher is necessary for a 3.5% downpayment with the FHA. In the event you came out of a bankruptcy or foreclosure, you will have to have preserved a perfect FICO score since that time (4 years and 5 years respectively) irregardless of current credit score.
FHA Loan Application:
• Complete the Buyer Information request, that tells us what you have and just what you want. This will permit the FHA mortgage specialist get in touch with you to discuss your primary goal. Soon after a full mortgage application should be completed that highlights all things about yourself, the applicant, which is used for trying to figure out whether you are qualified to receive a home loan or otherwise. The rate and terms of the loan may also be determined largely by the data in the mortgage application form, credit score, etc.
• In case the loan application is preapproved, you will get the disclosure documents that are essentially initial loan records that have all the minute details regarding the terms, interest rates, cost and monthly payments of the mortgage loan.
• This needs to be agreed upon and returned along with records like bank statements, IDs, personal references, etc., for validation purposes. Usually these documents are prepared and readied before the loan application is sent to the lender.
• The processor double checks all verifying papers and may request missing records from the borrower if necessary.
• Upon completion, the written documents will be submitted to the loan underwriter.
• The underwriter will be sending a Conditions List of further missing items or documents to the home buyer.
• Whenever the buyer completes the needed items listed, it is returned to the lender for final consent. A closing date is then set.
Note: When you are in contract on a home, the whole loan closure process takes roughly 3 weeks to a month.
Questions or concerns? Please be sure to call us, 7 days a week at 800-871-2636 or simply complete the brief information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that currently have an FHA loan can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers living in more rural areas in Florida can read about the 100% USDA loan at www.usdamortgagesource.com