The Florida FHA mortgage is the best option to most first time buyers in Florida. Florida’s FHA loan program offers several advantages, bearing in mind the budget limits of many homeowners who are interested in buying their first residence. Compared to other conventional home mortgages, the FHA mortgage loan eases the purchasing process for the loan applicant. Also the FHA loan requires a rather low down payment, which makes it a lot easier for homeowners that may have a tough time saving for the sizable down payment needed by typical home loans.
What are the most important benefits to getting an FHA mortgage loan in Sopchoppy?
• Secure fixed loan interest rate – One of the leading advantages of a Florida FHA loan is the benefit of paying a fixed 15 or 30 year rate of interest. In comparison to other conventional loans where the loan interest rates change, the rate remains the same for the total lifetime of the loan. This timeframe is generally for 30 years. Due to this provision the borrower can budget their predetermined monthly payment before hand.
• Small down payment – The Federal government guarantees or supports FHA loans, therefore the borrower has very nominal fees during the process. FHA home loans call for a minimum 3.5% investment from the applicant. The mortgage does make it possible for the home seller to cover all costs of closing, up to 6% which is frequently enough to handle just about any home purchase.
• Not Difficult to Qualify – Pre-Qualifying for a Florida FHA home loan is pretty straight forward. Since it is the FHA that insures your mortgage loan, the lenders and banks make it easier for anyone to qualify when they meet the basic requirements. The most important aspects of qualifying are usually history of credit, cash flow and employment records.
• Adjustable Interest Rate Option – The FHA mortgage loan began due to the small budget restrictions of first time homeowners. This is the reason the FHA has got an adjustable rate option for home buyers, which has a surprisingly low monthly repayment and interest rate.
• No cash reserves required – Compared to numerous standard home loan programs, the Florida FHA home mortgage is a really tempting option for Sopchoppy, FL first time property owners that have a little income in the bank.
First-time home buyers need to learn what to expect before beginning the FHA loan application process. Being prepared will always boost your chances in successfully getting the FHA mortgage approved. Below we have listed a number of basic steps and things to consider.
Prior to application:
1. Debt-to-income ratio
Careful evaluation needs to be done here. Mortgage lenders vary on precise amounts, still a debts load that is more than 41 to 45 percent is high-risk for an FHA loan. You need 2 years of steady employment without having unexplainable interruptions in job history.
2. Credit History
It is all of the small things that could hurt your credit score. Check your earnings, credit worthiness, in addition to rental history which may show up on a credit report. Get every aspect on the up and up, concentrating on a thoroughly clean record.
3. Overall credit score
In 2013, a FICO score of 620 or greater is needed for a 3.5% down payment with the FHA. In the event you came out of a bankruptcy or foreclosure, you will have to have retained a perfect credit score since that time (4 years and 5 years respectively) irrespective of current credit worthiness.
FHA Mortgage Application:
• Complete the Buyer Information request, that tells us just what you have and what you require. This will allow the FHA mortgage professional get in touch with you to discuss your goals. Afterwards a full application will have to be done that highlights all things about yourself, the borrower, which is to be used in trying to figure out whether you are qualified for a home loan or otherwise. The interest rate and loan terms can also be determined largely by the info in your application form, credit scores, etc.
• In case the application is pre-approved, you get the disclosure records that are essentially preliminary loan records that contain all the minute details in connection with terms and conditions, interest rates, selling price and repayments of the loan.
• This has to be signed and brought back along with records like bank statements, IDs, references, etc., for validation purposes. These documents are prepped and readied way before the mortgage loan application is sent to the loan provider.
• The processor double checks all confirming documents and may ask for missing paperwork from you if need be.
• When completed, the forms are then sent to the loan underwriter.
• The loan underwriter sends a Conditions List of even more missing elements or records to the home buyer.
• Whenever the buyer finishes the necessary items listed, it is returned to the mortgage lender for final approval. A closing date is then established.
Notice: Once you are in contract on a home, the overall loan closing process can take about three weeks to a month.
Have Questions? Please call us, 7 days a week at 800-871-2636 or simply just complete the brief information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA loan can learn 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 mortgage at www.usdamortgagesource.com