The Florida FHA mortgage has become the best option to many first time homebuyers in Florida. The Florida FHA loan program presents several benefits, bearing in mind the budget constraints of most homeowners who are considering buying their first home. In comparison to most traditional mortgage loans, the FHA loan eases the buying process for the loan applicant. On top of that the FHA mortgage requires a rather low down payment, which makes it easier for homeowners that may have a tough time saving money for the sizable down payment needed by standard loans.
What are the most important pros in obtaining an FHA loan in Weeki Wachee, FL?
• Secure fixed interest rate – One of the big advantages for the Florida FHA home loan is the benefit of having a fixed 15 or 30 year interest rate. When compared to other conventional loans in which the loan interest rates can vary, the rate continues to be the same for the total duration of the mortgage. This period is typically for 30 years. Because of this provision the consumer can map out their predetermined monthly payment before hand.
• Minimum down payment – The Government insures or supports FHA loans, therefore the applicant incurs very minimal fees along the way. FHA secured loans require a minimum 3.5% investment from the borrower. The mortgage loan does allow for the property seller to pay for all costs of closing, as much as 6% which can be frequently enough to cover just about any home purchase.
• Not Difficult to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is rather easy. Because it’s the FHA that covers your house loan, the lenders and mortgage lenders make it easy for anyone to qualify that meets the simple requirements. The biggest aspects of qualifying are usually credit ranking, earnings and employment records.
• Adjustable Rate Option – The FHA loan began due to the stretched financial restrictions of first-time home buyers. This is exactly why the FHA features an adjustable rate option for home buyers, which has a remarkably low payment amount and interest rate.
• There aren’t any cash reserves required – In comparison with many conventional loan programs, Florida’s FHA home loan is a particularly attractive option for Weeki Wachee, FL first-time home-owners which have a little bit of income saved up.
First Time purchasers need to know what to expect before starting the FHA mortgage loan application process. Simply being prepared will always increase your chances in successfully having your FHA home loan approved. Here we have listed a number of tips and issues to consider.
In advance of application:
1. Debt-to-income ratio
Mindful evaluation needs to be done here. Creditors differ on exact amounts, but a debts load thatâ€™s higher than 41 to 45 percent is risky for an FHA loan. You absolutely need two years of continuous employment without any unexplained interruptions in job history.
2. Credit Check
It is typically the small things which can damage your credit history. Check your income, credit history, along with rent history which could show on a credit file. Get all the things on the up and up, concentrating on a spotless record.
3. Credit score
As of 2013, a credit score of 620 or higher is required for a 3.5% downpayment with the FHA. In case you have had a bankruptcy or foreclosure, you must have preserved a perfect credit worthiness since that time (4 years and 5 years respectively) irrespective of present credit rating.
FHA Loan Application:
• Fill out the Buyer Information form, that lets us know what you have and just what you require. This will allow the FHA mortgage specialist to call you to discuss your objectives. Later on a full application should be submitted that highlights everything about yourself, the borrower, which is used in determining whether you are eligible for a home loan or otherwise. The interest rate and terms of the loan may also be driven largely by the details in the loan application form, credit report, etc.
• In case the loan application is pre-approved, you get the disclosure records which are essentially preliminary loan documents which have all the minute details regarding the terms and conditions, mortgage rates, cost and installment payments of the home loan.
• This must be signed and returned along with documents like you bank records, IDs, references, etc., for validation purposes. These documents are prepped and readied prior to when the loan application is submitted to the mortgage company.
• The processor double checks all validating papers and may ask for absent docs from you if need be.
• Upon completion, the forms are sent to the underwriter.
• The underwriter sends a Conditions List of other missing items or documents to the purchaser.
• After the buyer finishes the required items listed, it is delivered back to the mortgage lender for final acceptance. A closing date is then scheduled.
Note: When you are in contract on a residence, the entire loan closing process can take about 3 weeks to a month.
Questions or concerns? Please be sure to call us, 7 days a week at 800-871-2636 or just fill out the short information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that currently have an FHA loan can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers residing in more rural places in The state of Florida can read about the 100% USDA mortgage loan at www.usdamortgagesource.com