The Florida FHA mortgage is the first solution to the majority of first time home buyers in the State of Florida. Florida’s FHA mortgage loan program gives several benefits, bearing in mind the budget constraints of most homeowners who are considering buying their first home. In comparison with other traditional home mortgages, the FHA loan eases the buying process to the loan applicant. Also the FHA mortgage requires a very low down payment, which makes it simpler for homeowners that may have a tough time saving for the large down payment needed by traditional home loans.
What are the huge benefits to obtaining an FHA mortgage loan in Georgetown?
• Secure fixed interest rate – One of the biggest advantages of a Florida FHA home loan is the benefit of having a fixed 15 or 30 year interest rate. As compared with other standard loans in which the interest rates vary, the rate stays the same for the entire lifetime of the loan. This period is often for 30 years. Due to this provision the consumer can prepare their specific predetermined monthly installment ahead of time.
• Small down payment – The Government guarantees or backs FHA loans, which means the applicant incurs very nominal charges during the process. FHA financial loans require a minimum 3.5% financial commitment from the borrower. The loan does permit the home seller to pay all costs of closing, anywhere up to 6% which can be typically enough to handle almost any home sale.
• Easy to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is rather straight forward. Because it’s the FHA that covers the home loan, the lenders and banks make it straightforward for everyone to qualify that meets the standard requirements. The biggest components in qualifying usually are credit scores, earnings and job history.
• Adjustable Rate Option – The FHA home loan originated due to stretched financial restrictions of first-time home buyers. That’s the reason the FHA has got an adjustable rate option for home buyers, which calls for a relatively low payment and interest rate.
• No cash reserves required – When compared to numerous standard home loan programs, Florida’s FHA home mortgage is a highly enticing option for Georgetown first-time home owners who have a small amount of money in the bank.
First-time buyers should find out what to expect before starting the FHA loan application process. Simply being prepared will always boost your chances in successfully having your FHA home loan approved. Here we have listed some steps and issues to consider.
In advance of application:
1. Debt-to-income ratio
Cautious examination must be done at this point. Mortgage lenders can vary on exact amounts, still a financial debt load thatâ€™s above 41 to 45 percent is risky for an FHA loan. You absolutely need two years of consistent employment without unexplained gaps in employment.
2. Credit History
It is usually the tiny problems which will harm your credit ratings. Check your income source, credit standing, together with rental history that could show up on a credit report. Get all the things handled, aiming for a clean record.
3. Credit scores
As of 2013, a credit rating of 620 or better is needed for a 3.5% down payment with the FHA. For those who have had a bankruptcy or foreclosure, you would have to have retained a perfect FICO score since that time (4 years and 5 years respectively) irrespective of present credit score.
FHA Mortgage Application:
• Complete the Buyer Information form, which tells us just what you have and just what you need. It will allow the FHA mortgage specialist to contact you to discuss your primary goal. Later on a full application will need to be filled out that details all things about yourself, the applicant, which is to be used for figuring out whether you are eligible for a home loan or otherwise. The rate and loan terms may also be driven largely by the info in your application form, credit rating, etc.
• In case the loan application is preapproved, you will get the disclosure records which are essentially preliminary loan records that contain all the minute details in connection with terms and conditions, rates of interest, selling price and installment payments of the loan.
• This has to be agreed upon and returned along with other documents such as your bank account documents, IDs, personal references, etc., for validation purposes. These documents are prepped and readied way before the loan application is sent to the mortgage lender.
• The processor double checks all confirming written documents and may ask for absent records from you if necessary.
• When completed, the docs are sent to the loan underwriter.
• The loan underwriter will be sending a Conditions List of more missing items or documents to the purchaser.
• Whenever the buyer completes the required items outlined, it is sent back to the lender for final approval. A closing day is then set.
Notice: When you are in contract on a residence, the whole loan closing process usually takes around three 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 speedy info request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that currently have an FHA home loan can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers located in more rural areas in Florida can learn more about the 100% USDA mortgage at www.usdamortgagesource.com