The Florida FHA mortgage has become the best option to most first time homebuyers in Florida. Florida’s FHA mortgage loan program offers several benefits, bearing in mind the budget limitations of many homeowners who are interested in purchasing their first residence. In comparison with most traditional mortgage loans, the FHA loan eases the process to the loan applicant. Aside from that the FHA mortgage loan requires a fairly low down payment, which makes it easier for homeowners that may have problems saving money for the substantial down payment needed by old fashioned home loans.
What are the key advantages in obtaining an FHA mortgage loan in Highland Beach, FL?
• Secure fixed loan interest rate – One of the leading advantages of your Florida FHA mortgage loan is the benefit of having a fixed 15 or 30 year rate of interest. When compared to other conventional loans in which the interest rates change, the rate remains the same for the entire duration of the mortgage. This period is typically for 30 years. Because of this provision the borrower can map out their specific fixed monthly payment up-front.
• Lowest down payment – The Federal government guarantees or backs FHA loans, therefore the applicant incurs very little fees in the process. FHA loans need a minimum 3.5% investment from the applicant. The mortgage loan does make it possible for the home seller to pay for all costs of closing, all the way to 6% which is often enough to handle virtually any property purchase.
• Not Difficult to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is very easy. Since it is the FHA that insures your home loan, the loan providers and banks make it easier for anybody to qualify when they meet the main requirements. The key components of qualifying are usually credit ratings, cash flow and employment.
• Adjustable Rate Option – The FHA mortgage loan started because of the stretched budget constraints of first time homeowners. This is exactly why the FHA features an adjustable rate option for home buyers, which features a remarkably low payment amount and interest rate.
• There aren’t any cash reserves required – In comparison with numerous conventional mortgage programs, the Florida FHA home mortgage is a really enticing option for Highland Beach first time home-owners that have a small amount of money in the bank.
First Time purchasers need to know what to expect before starting the FHA home loan application process. Being prepared will always increase your opportunities in successfully getting the FHA mortgage loan accepted. Below we list some tips and aspects to consider.
Prior to application:
1. Debt-to-income ratio
Thorough analysis should be done at this point. Creditors vary on specific amounts, still a debts load thatâ€™s above 41 to 45 percent is high risk for an FHA loan. You will need 2 years of regular employment without having unexplained gaps in job history.
2. Credit History
It is usually the small things which could harm your consumer credit. Check your earnings, credit worthiness, as well as rental history which can show on a credit file. Get all the details taken care of, aiming towards a clean record.
3. Credit worthiness
In 2013, a credit rating of 620 or better is needed for a 3.5% down payment with the FHA. In the event you have had a bankruptcy or foreclosure, you would have to have maintained a perfect FICO score since that time (4 years and 5 years respectively) irrespective of recent credit rating.
FHA Mortgage Application:
• Complete the Buyer Information request, that tells us just what you have along with what you need. It will allow the FHA mortgage consultant to call you to discuss your objectives. Afterwards a full mortgage application will have to be done that highlights all things about yourself, the applicant, which is to be used in finding out whether you are qualified for a loan or otherwise. The rate and terms of the loan will also be identified largely by the data in the loan application form, credit rating, etc.
• In the event the application is preapproved, you get the disclosure records which are essentially initial loan documents that have all the minute details with regards to the terms and conditions, rates of interest, cost and installments of the mortgage loan.
• This must be agreed upon and returned along with records like you bank statements, IDs, references, etc., for validation purposes. These documents are prepared and readied prior to when the loan application is submitted to the mortgage lender.
• The processor double checks all confirming papers and may ask for absent documents from you if needed.
• When completed, the records will be submitted to the loan underwriter.
• The underwriter will send a Conditions List of additional missing items or docs to the home buyer.
• When the buyer completes the needed items listed, it is returned to the mortgage lender for final consent. A closing day is then established.
Notice: After in contract on a home, the entire loan closing process can take roughly three weeks to a month.
Have Questions? Please make sure to call us, 7 days a week at 800-871-2636 or simply just fill out the fast information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA mortgage loan can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers residing in more rural areas in The state of Florida can learn more about the 100% USDA loan at www.usdamortgagesource.com