The Florida FHA mortgage is the best option to the majority of first time homebuyers in Florida. The Florida FHA mortgage loan program gives several benefits, keeping in mind the financial limits of most homeowners who are interested in purchasing their first residence. In comparison to other traditional mortgage loans, the FHA home loan facilitates the buying process to the loan applicant. In addition the FHA mortgage involves a very low down payment, which makes it much easier for homeowners that may have difficulties saving for the huge down payment needed by conventional home loans.
What are the biggest advantages to acquiring an FHA mortgage loan in Cedar Key, FL?
• Secure fixed interest rate – One of the leading advantages of the Florida FHA mortgage loan is the provision of paying a fixed 15 or 30 year rate of interest. When compared to other standard loans where the interest rates vary, the rate remains the same for the full lifetime of the mortgage loan. This timeframe is often for 30 years. Due to this provision the borrower can plan their specific fixed monthly installment beforehand.
• Lowest down payment – The Federal government guarantees or supports FHA loans, which means the applicant has very minimal fees along the way. FHA financial loans need a minimum 3.5% financial commitment from the borrower. The mortgage loan does support the home seller to cover all closing costs, all the way to 6% which is generally enough to handle almost any property sale.
• Easy to Qualify – Prequalifying for a Florida FHA loan is pretty straight forward. Because it’s the FHA that covers your home loan, the lenders and lending institutions make it straightforward for everyone to qualify that meets the primary requirements. The primary components of qualifying are usually credit ranking, source of income and employment.
• Adjustable Rate Option – The FHA loan began mainly because of the tight financial constraints of first time buyers. That’s the reason the FHA has got an adjustable rate option for home buyers, which will incorporate a surprisingly low monthly payment and interest rate.
• There are not any cash reserves required – In contrast to many standard mortgage programs, the Florida FHA home loan is a very appealing option for Cedar Key, FL first time property owners who have a little income in the bank.
First Time home buyers should find out what to expect prior to starting the FHA home loan application process. Being prepared will always boost your chances in successfully getting the FHA mortgage loan approved. Here we have listed a number of simple steps and issues to consider.
Prior to application:
1. Debt-to-income ratio
Thorough evaluation has to be done at this stage. Mortgage companies fluctuate on actual amounts, despite the fact that a debts load that is more than 41 to 45 percent is high-risk for an FHA loan. You should have 2 years of steady employment without having any unexplained breaks in employment history.
2. Credit History
It is typically the tiny problems which can damage your credit ratings. Examine your income source, credit, along with rent history that may show up on a credit report. Get every aspect handled, aiming for a good record.
3. Credit worthiness
As of 2013, a credit score of 620 or better is required for a 3.5% downpayment with the FHA. In case you came out of a bankruptcy or foreclosure, you would have to have retained a perfect credit ranking since then (4 years and 5 years respectively) in spite of present credit standing.
FHA Mortgage Loan Application:
• Complete the Buyer Information request, that tells us just what you have along with what you want. This will permit the FHA mortgage loan consultant get in touch with you to discuss your primary goal. Subsequently a full mortgage application will need to be submitted that details all about you, the applicant, which is to be used for figuring out whether you are eligible for a mortgage loan or otherwise. The rate and loan terms can also be driven largely by the data in the application form, credit report, etc.
• In the event the loan application is pre-approved, you will get the disclosure records which are essentially initial loan records that contain all the minute details with regards to the terms, interest levels, selling price and payments of the loan.
• This needs to be signed and returned along with other records like bank account statements, IDs, individual references, etc., for verification purposes. Usually these documents are prepped and readied ahead of the mortgage loan application is sent to the loan provider.
• The processor double checks all verifying documents and may ask for missing paperwork from the borrower if necessary.
• When completed, the written documents are then submitted to the loan underwriter.
• The underwriter sends a Conditions List of even more missing elements or records to the purchaser.
• Once the buyer completes the required items listed, it is delivered back to the lender for final authorization. A closing day is then established.
Notice: Once you are in contract on a property, the full loan closing process takes close to three weeks to a month.
Still have questions? Be sure to call us, 7 days a week at 800-871-2636 or just complete the speedy information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently have an FHA home loan can learn about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers residing in more rural locations in The state of Florida can learn more about the 100% USDA mortgage at www.usdamortgagesource.com