The Florida FHA mortgage has become the best choice to the majority of first time home buyers in Florida. Florida’s FHA home loan program presents several benefits, paying attention to the budget limitations of many homeowners who are interested in purchasing their first home. In comparison to other traditional mortgage loans, the FHA loan facilitates the buying process for the loan applicant. In addition the FHA mortgage involves a very low down payment, which makes it a lot easier for homeowners that may have trouble saving for the sizeable down payment required by typical loans.
What are the most valuable pros in obtaining an FHA mortgage loan in Grant, FL?
• Secure fixed loan interest rate – One of the greatest advantages for the Florida FHA mortgage loan is the benefit of paying a fixed 15 or 30 year rate of interest. As compared to other basic loans in which the interest rates can vary, the rate stays the same for the entire length of the mortgage loan. This period is often for 30 years. Due to this provision the consumer can budget their specific fixed monthly payment before hand.
• Low down payment – The Federal government insures or backs FHA loans, therefore the borrower has very nominal fees along the way. FHA financial loans require a minimum 3.5% financial commitment from the borrower. The loan does support the property seller to pay for all closing costs, up to 6% which can be often enough to cover almost any home purchase.
• Not Hard to Qualify – Pre-Qualifying for a Florida FHA loan is rather straight forward. Because it’s the FHA that insures your home loan, the financial institutions and banks make it feasible for everyone to qualify that meets the base requirements. The main elements of qualifying usually are credit rating, source of income and job history.
• Adjustable Interest Rate Option – The FHA home loan originated due to small financial restrictions of first-time homeowners. This is exactly why the FHA features an adjustable rate option for home buyers, which entails a surprisingly low monthly payment and interest rate.
• There are not any cash reserves required – In contrast with many conventional home loan programs, Florida’s FHA mortgage loan is a pretty attractive option for Grant, FL first-time homeowners that have a little funds saved up.
First Time purchasers must know what to expect before starting the FHA home loan application process. Simply being prepared will often better your odds in successfully having your FHA loan approved. Here we list a few guidelines and factors to consider.
1. Debt-to-income ratio
Cautious study has to be done at this point. Mortgage lenders can vary on specific amounts, but a financial debt load thatâ€™s higher than 41 to 45 percent is high-risk for an FHA loan. You should have two years of regular employment without unexplained gaps in employment.
2. Credit Check
It is all of the small things that may damage your consumer credit. Check your income, credit standing, as well as rental history which might show up on a credit file. Get all of it on the up and up, focusing on a completely clean record.
3. Credit ratings
In 2013, a credit rating of 620 or higher is required for a 3.5% down payment with the FHA. For those who have had a bankruptcy or foreclosure, you would need to have maintained a perfect credit worthiness since then (4 years and 5 years respectively) in spite of current credit worthiness.
FHA Mortgage Application:
• Fill out the Buyer Information form, which lets us know what you have and what you require. This will permit the FHA mortgage loan professional to get hold of you to discuss your goals. Later a full application must be submitted that highlights everything about yourself, the borrower, which is to be used for trying to figure out whether you are qualified for a mortgage or otherwise. The rate and terms of the loan can also be identified largely by the information in your mortgage application form, credit rating, etc.
• In the event the loan application is pre-approved, you will get the disclosure documents which are essentially preliminary loan records that have all the minute details regarding the terms, mortgage rates, cost and installments of the home loan.
• This must be agreed upon and brought back along with other records like bank documents, IDs, personal references, etc., for verification purposes. Usually these documents are prepped and readied way before the loan application is submitted to the loan provider.
• The processor reviews all verifying documents and may request missing docs from you if needed.
• When completed, the written documents are sent to the underwriter.
• The underwriter sends a Conditions List of additional missing items or records to the home buyer.
• Once the buyer completes the needed items detailed, it is returned to the mortgage lender for final authorization. A closing day is then set.
Notice: Once you are in contract on a property, the whole loan closure process normally takes around 3 weeks to a month.
Questions? Please be sure to call us, 7 days a week at 800-871-2636 or just complete the quick info request form on the right side of our home page at http://fivestarsmortgage.com. Homeowners that currently have an FHA loan can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers located in more rural places in The state of Florida can read about the 100% USDA home loan at www.usdamortgagesource.com