The Florida FHA mortgage is the best solution to many first time home buyers in Florida. The Florida FHA mortgage loan program offers several advantages, paying attention to the financial difficulties of many homeowners who are considering purchasing their first home. Compared to other traditional mortgage loans, the FHA loan facilitates the buying process to the applicant. In addition the FHA loan calls for a very low down payment, which makes it easier for homeowners that may have challenges saving up the considerable down payment needed by typical home loans.
What are the most important benefits in choosing an FHA mortgage loan in Bowling Green, FL?
• Secure fixed interest rate – One of the leading advantages of a Florida FHA home loan is the provision of having a fixed 15 or 30 year rate of interest. When compared with other traditional loans where the loan interest rates fluctuate, the rate stays the same for the entire length of the loan. This period is normally for 30 years. Because of this provision the borrower can budget their specific fixed monthly payment beforehand.
• Small down payment – The Government insures or supports FHA loans, therefore the applicant incurs very minimal charges in the process. FHA secured loans demand a minimum 3.5% investment from the borrower. The loan does allow for the home seller to pay for all closing costs, all the way to 6% which is usually enough to take care of almost any home sale.
• Easy to Qualify – Pre-Qualifying for a Florida FHA loan is pretty straight forward. Because it’s the FHA that insures your house loan, the loan providers and mortgage lenders make it simple for anyone to qualify that meets the standard requirements. The main components in qualifying are generally credit history, income and employment history.
• Adjustable Interest Rate Option – The FHA loan began as a result of stretched financial restrictions of first time homeowners. For this reason the FHA has an adjustable rate option for home buyers, which has a very low monthly repayment and interest rate.
• There won’t be cash reserves required – In contrast with numerous standard mortgage programs, the Florida FHA home mortgage is a highly appealing option for Bowling Green first time home-owners who have a little bit of revenue saved.
First Time buyers must know what to expect before starting the FHA mortgage loan application process. Being prepared will always raise your opportunities in successfully getting the FHA loan accepted. Here we have listed some simple steps and points to consider.
1. Debt-to-income ratio
Careful study should be done here. Loan providers differ on actual amounts, but a financial debt load thatâ€™s higher than 41 to 45 percent is risky for an FHA loan. You absolutely need two years of continuous employment with no unexplained breaks in job history.
2. Credit History
It is all of the tiny problems which can harm your consumer credit. Examine your earnings, credit standing, as well as rent history that might be displayed on a credit report. Get all the details handled, shooting for a clean record.
3. Credit score
As of 2013, a credit rating of 620 or greater is required for the 3.5% down payment with the FHA. In case 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) regardless of present credit rating.
FHA Loan Application:
• Complete the Buyer Information request, that lets us know just what you have and just what you require. It will allow the FHA mortgage loan consultant get in touch with you to discuss your goals. Soon after a full mortgage application must be filled out that highlights all things about you, the applicant, which will be used in figuring out whether you are eligible for a home loan or otherwise. The interest rate and terms of the loan may also be identified largely by the info in your mortgage application form, credit score, etc.
• In the event the application is pre-approved, you will get the disclosure records which are essentially initial loan records which have all the minute details with regards to the terms, rates of interest, cost and repayments of the home loan.
• This must be signed and returned along with other records such as your bank account statements, IDs, individual references, etc., for validation purposes. These documents are prepped and readied well before the loan application is submitted to the lender.
• The processor reviews all verifying documents and may request absent documentation from you if required.
• When completed, the records and documents are then submitted to the loan underwriter.
• The loan underwriter will send a Conditions List of additional missing items or documents to the purchaser.
• After the buyer finishes the required items detailed, it is sent back to the mortgage lender for final acceptance. A closing date is then established.
Notice: Once you are in contract on a residence, the whole loan closure process usually takes about 3 weeks to a month.
Questions? Please be sure to call us, 7 days a week at 800-871-2636 or just submit the speedy information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that presently 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 loan at www.usdamortgagesource.com