The Florida FHA mortgage has become the first choice to the majority of first time buyers in Florida. The Florida FHA home loan program provides several benefits, bearing in mind the funding difficulties of most homeowners who are interested in buying their very first home. In comparison to other conventional mortgage loans, the FHA home loan facilitates the process to the loan applicant. Additionally the FHA mortgage requires a very low down payment, which makes it quite a bit easier for homeowners that may have trouble saving for the big down payment required by common loans.
What are the main advantages in choosing an FHA loan in Chipley?
• Secure fixed interest rate – One of the biggest advantages of the Florida FHA loan is the benefit of paying a fixed 15 or 30 year rate of interest. Compared to the other conventional loans in which the interest rates fluctuate, the rate remains the same for the entire course of the loan. This period is commonly for 30 years. Due to this provision the borrower can plan their specific predetermined monthly payment ahead of time.
• Minimal down payment – The Federal government guarantees or backs FHA loans, which means the applicant incurs very nominal charges during the process. FHA mortgages require a minimum 3.5% investment from the applicant. The mortgage does support the home seller to cover all costs of closing, all the way to 6% which can be often enough to handle virtually any home sale.
• Quick to Qualify – Prequalifying for a Florida FHA loan is rather simple. Since it is the FHA that covers the home loan, the creditors and mortgage lenders make it straightforward for anyone to qualify when they meet the basic requirements. The most important components of qualifying usually are credit scores, income source and employment records.
• Adjustable Rate Option – The FHA mortgage loan began as a result of limited budget constraints of first-time buyers. This is exactly why the FHA has got an adjustable rate option for home buyers, which entails a really low monthly payment and interest rate.
• No cash reserves required – When compared to many standard loan programs, the Florida FHA mortgage is a very tempting option for Chipley first time homeowners that have just a little income saved up.
First Time home buyers need to learn what to expect before beginning the FHA home loan application process. Simply being prepared will often increase your opportunities in successfully getting your FHA loan approved. Here we list some simple steps and considerations.
In advance of application:
1. Debt-to-income ratio
Mindful study needs to be done at this point. Loan providers differ on exact amounts, still a debt load thatâ€™s higher than 41 to 45 percent is risky for an FHA loan. You should have two years of consistent employment without having unexplainable breaks in employment history.
2. Credit Check
It is normally the tiny problems that can hurt your credit ratings. Look at your income, credit, in addition to rent history that could show up on a credit report. Get all of it handled, aiming towards a completely clean record.
3. Credit rating
In 2013, a credit rating of 620 or better is necessary for a 3.5% down payment with the FHA. If you have had a bankruptcy or foreclosure, you must have preserved a perfect credit standing since that time (4 years and 5 years respectively) regardless of existing credit standing.
FHA Mortgage Loan Application:
• Fill out the Buyer Information request, that tells us just what you have along with what you want. This will permit the FHA mortgage loan professional get in touch with you to discuss your goals. Afterwards a full application will have to be completed that highlights all about yourself, the applicant, which is to be used in finding out whether you are eligible for a mortgage loan or otherwise. The rate and loan terms may also be driven largely by the data in the loan application form, credit rating, etc.
• In case the application is pre-approved, you will get the disclosure docs that are essentially initial loan records that have all the minute details in connection with terms and conditions, rates, selling price and installment payments of the home loan.
• This has to be agreed upon and brought back along with other records such as your bank account documents, IDs, individual references, etc., for verification purposes. Usually these documents are prepared and readied ahead of the mortgage loan application is sent to the mortgage company.
• The processor double checks all confirming documents and might request absent records and documents from you if need be.
• Upon completion, the written documents are submitted to the underwriter.
• The loan underwriter sends a Conditions List of more missing items or documents to the home buyer.
• After the buyer finishes the desired items listed, it is sent back to the lender for final affirmation. A closing day is then established.
Notice: When you are in contract on a home, the entire loan closing process takes roughly 3 weeks to a month.
Still have questions? Please be sure to call us, 7 days a week at 800-871-2636 or simply just fill out the easy information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA mortgage can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers living in more rural locations in The state of Florida can read about the 100% USDA mortgage loan at www.usdamortgagesource.com