The Florida FHA mortgage has become the first choice to the majority of first time buyers in the State of Florida. Florida’s FHA home loan program presents several advantages, bearing in mind the budget limitations of most homeowners who are considering purchasing their first home. In comparison to most traditional home mortgages, the FHA mortgage loan facilitates the buying process to the applicant. Also the FHA loan requires a fairly low down payment, which makes it a lot easier for homeowners that may have difficulties saving money for the substantial down payment expected by common mortgage loans.
What are the most valuable benefits to choosing an FHA mortgage loan in White Springs, FL?
• Secure fixed loan interest rates – One of the greatest advantages of a Florida FHA loan is the benefit of having a fixed 15 or 30 year rate of interest. In contrast to other regular loans where the loan interest rates vary, the rate continues to be the same for the entire length of the mortgage loan. This timeframe is commonly for 30 years. Because of this provision the consumer can pre-plan their specific fixed monthly payment up-front.
• Low down payment – The Federal government guarantees or supports FHA loans, therefore the applicant has very minimal fees along the way. FHA secured loans must have a minimum 3.5% financial commitment from the borrower. The mortgage does permit the home seller to pay for all costs of closing, as much as 6% which can be typically enough to take care of just about any property sale.
• Not Difficult to Qualify – Pre-Qualifying for a Florida FHA home loan is quite effortless. Since it is the FHA that covers your mortgage loan, the creditors and banks make it feasible for everyone to qualify that meets the main requirements. The key aspects of qualifying are generally history of credit, income and job history.
• Adjustable Rate Option – The FHA home loan originated mainly because of the limited financial constraints of first-time home buyers. This is exactly why the FHA has an adjustable rate option for home buyers, which has a surprisingly low monthly repayment and interest rate.
• There aren’t cash reserves required – Compared to many conventional loan programs, the Florida FHA mortgage is a highly appealing option for White Springs first-time home owners that have just a little money saved up.
First Time home buyers must know what to expect before beginning the FHA mortgage application process. Simply being prepared will often boost your odds in successfully having your FHA home loan accepted. Below we list a few tips and issues to consider.
Prior to application:
1. Debt-to-income ratio
Cautious examination has to be done at this stage. Lenders vary on precise amounts, still a debts load thatâ€™s more than 41 to 45 percent is risky for an FHA loan. You will need two years of continuous employment without any unexplained gaps in job history.
2. Credit Check
It is normally the small things which may damage your credit history. Check your earnings, credit standing, in addition to rental history which may be displayed on a credit file. Get everything handled, shooting for a clean record.
3. Credit scores
As of 2013, a credit rating of 620 or higher is needed for a 3.5% down payment with the FHA. In the event you came out of a bankruptcy or foreclosure, you would have to have kept a perfect FICO score since that time (4 years and 5 years respectively) regardless of present credit standing.
FHA Mortgage Loan Application:
• Fill out the Buyer Information request, which tells us what you have along with what you require. It will allow the FHA loan professional get in touch with you to discuss your primary goal. Later a full application will have to be submitted that highlights all things about you, the purchaser, which is to be used in deciding whether you are qualified for a mortgage loan or otherwise. The rate and terms of the loan can also be identified largely by the data in your mortgage application form, credit scores, etc.
• In the event the loan application is pre-approved, you will get the disclosure documents which are essentially initial loan records that contain all the minute details in connection with the terms, mortgage rates, selling price and payments of the loan.
• This needs to be agreed upon and brought back along with other records such as your bank account records, IDs, personal references, etc., for validation purposes. These documents are prepared and readied way before the loan application is sent to the mortgage lender.
• The processor double checks all validating papers and might request missing paperwork from the borrower if needed.
• Upon completion, the written documents are sent to the loan underwriter.
• The underwriter will send a Conditions List of additional missing elements or documents to the buyer.
• Whenever the buyer completes the needed items listed, it is delivered back to the mortgage lender for final consent. A closing day is then established.
Note: After in contract on a property, the whole loan closing process takes close to three weeks to a month.
Questions? Please make sure to call us, 7 days a week at 800-871-2636 or simply submit the fast information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA mortgage loan can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers living in more rural locations in Florida can learn more about the 100% USDA home loan at www.usdamortgagesource.com