The Florida FHA mortgage has become the best option to many first time homebuyers in Florida. Florida’s FHA mortgage loan program features several benefits, keeping in mind the financial limitations of many homeowners who are considering buying their first residence. In comparison to most conventional home mortgages, the FHA home loan eases the process for the loan applicant. Aside from that the FHA loan consists of a fairly low down payment, which makes it simplier and easier for homeowners that may have challenges saving for the sizeable down payment needed by typical mortgage loans.
What are the key advantages in getting an FHA mortgage loan in Coral Springs?
• Secure fixed interest rate – One of the greatest advantages of your Florida FHA loan is the provision of paying a fixed 15 or 30 year rate of interest. Compared to the other conventional loans where the interest rates can vary, the rate continues to be the same for the entire lifetime of the loan. This period is typically for 30 years. Because of this provision the borrower can map out their specific predetermined monthly installment up-front.
• Minimum down payment – The Federal government guarantees or supports FHA loans, therefore the applicant has very minimal fees during the process. FHA mortgages must have a minimum 3.5% investment from the borrower. The loan does make it possible for the home seller to pay for all costs of closing, up to 6% which can be often enough to handle just about any home sale.
• Not Difficult to Qualify – Pre-Qualifying for a Florida FHA home loan is very simple and easy. Because it’s the FHA that covers your house loan, the financial institutions and banks make it feasible for anyone to qualify that meets the base requirements. The primary components in qualifying are credit score, source of income and employment.
• Adjustable Interest Rate Option – The FHA home loan began as a result of small budget restrictions of first-time home owners. That’s why the FHA features an adjustable rate option for home buyers, which has a surprisingly low monthly repayment and interest rate.
• There are no cash reserves required – In contrast with most standard loan programs, Florida’s FHA home loan is a highly tempting option for Coral Springs, FL first time homeowners that have just a little revenue in the bank.
First Time buyers need to know what to expect before beginning the FHA mortgage application process. Being prepared will often increase your chances in successfully having your FHA mortgage loan accepted. Below we list a few guidelines and issues to consider.
Prior to application:
1. Debt-to-income ratio
Careful analysis must be done at this point. Creditors differ on precise amounts, but a debt load thatâ€™s greater than 41 to 45 percent is high-risk for an FHA loan. You absolutely need 2 years of continual employment with no unexplainable breaks in employment history.
2. Credit Check
It is usually the small things that can hurt your consumer credit rating. Examine your income, credit history, along with rent history that could show up on a credit file. Get all things handled, aiming towards a thoroughly clean record.
3. Credit score
In 2013, a FICO score of 620 or better is necessary for the 3.5% downpayment with the FHA. In the event you have had a bankruptcy or foreclosure, you must have retained a perfect credit worthiness since that time (4 years and 5 years respectively) irrespective of present credit rating.
FHA Mortgage Loan Application:
• Fill out the Buyer Information request, which lets us know just what you have and what you will want. This will permit the FHA loan professional to contact you to discuss your objectives. Later a full mortgage application must be completed that highlights everything about yourself, the purchaser, which is used for deciding whether you are eligible for a mortgage or otherwise. The interest rate and terms of the loan will also be driven largely by the data in the loan application form, credit standing, etc.
• In case the application is pre-approved, you will get the disclosure documents that are essentially preliminary loan records that have all the minute details in connection with the terms and conditions, interest levels, cost and monthly payments of the loan.
• This must be signed and returned along with records like you bank account documents, IDs, personal references, etc., for validation purposes. Usually these documents are prepared and readied prior to when the loan application is submitted to the lender.
• The processor reviews all confirming documents and may request absent records from the borrower if need be.
• When completed, the written documents are sent to the underwriter.
• The loan underwriter sends a Conditions List of additional missing elements or documents to the home buyer.
• Once the buyer completes the requested items outlined, it is returned to the mortgage lender for final affirmation. A closing day is then established.
Please Note: After in contract on a home, the entire loan closure process takes around 3 weeks to a month.
Still have questions? Be sure to call us, 7 days a week at 800-871-2636 or simply submit the easy info request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently 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 places in Florida can learn about the 100% USDA mortgage at www.usdamortgagesource.com