The Florida FHA mortgage is the first option to many first time homeowners in Florida. Florida’s FHA mortgage loan program offers several advantages, bearing in mind the funding difficulties of many homeowners who are interested in purchasing their first residence. In comparison with most traditional home mortgages, the FHA home loan facilitates the purchasing process for the applicant. In addition the FHA loan involves a very low down payment, which makes it simplier and easier for homeowners that may have problems saving money for the sizable down payment required by common mortgage loans.
What are the important benefits to choosing an FHA mortgage loan in Jupiter Inlet Colony, FL?
• Secure fixed loan interest rate – One of the leading advantages for the Florida FHA loan is the provision of having a fixed 15 or 30 year interest rate. In comparison to other conventional loans where the interest rates change, the rate stays the same for the entire lifetime of the loan. This timeframe is normally for 30 years. Because of this provision the borrower can plan out their predetermined monthly payment beforehand.
• Minimum down payment – The Federal government insures or backs FHA loans, which means the borrower incurs very minimal charges along the way. FHA financial loans need a minimum 3.5% investment from the applicant. The loan does permit the home seller to cover all closing costs, up to 6% which is normally enough to handle almost any home sale.
• Quick to Qualify – Pre-Qualifying for a Florida FHA mortgage loan is very simple and easy. Since it is the FHA that covers the home loan, the lenders and lending institutions make it easier for anyone to qualify when they meet the primary requirements. The biggest components in qualifying are generally credit scores, source of income and employment.
• Adjustable Rate Option – The FHA loan started mainly because of the stretched financial constraints of first time home owners. This is why the FHA features an adjustable rate option for home buyers, which will incorporate a remarkably low monthly repayment and interest rate.
• There are no cash reserves required – In contrast with other standard home loan programs, Florida’s FHA mortgage loan is a highly enticing option for Jupiter Inlet Colony first time home owners which have a small amount of income in the bank.
First Time buyers should find out what to expect before beginning the FHA home loan application process. Being prepared will usually improve your odds in successfully getting the FHA mortgage accepted. Here we list a number of tips and some things to consider.
In advance of application:
1. Debt-to-income ratio
Cautious researching should be done here. Mortgage companies differ on precise amounts, but a financial debt load that is higher than 41 to 45 percent is high-risk for an FHA loan. You need 2 years of continual employment without unexplainable gaps in employment history.
2. Credit Check
It is typically the tiny problems which will harm your credit ratings. Examine your income, credit score, in addition to rental history which may show on a credit file. Get everything taken care of, shooting for a fully clean record.
3. Credit score
As of 2013, a credit score of 620 or higher is necessary for a 3.5% down payment with the FHA. In the event you came out of a bankruptcy or foreclosure, you would need to have preserved a perfect FICO score since that time (4 years and 5 years respectively) regardless of present credit worthiness.
FHA Mortgage Application:
• Fill out the Buyer Information form, that lets us know just what you have and just what you will want. It will permit the FHA loan professional to contact you to discuss your objectives. Later a full application must be completed that highlights all things about yourself, the borrower, which is used in finding out whether you are eligible for a mortgage loan or otherwise. The interest rate and terms of the loan may also be determined largely by the details in your loan application form, credit standing, etc.
• In case the application is pre-approved, you will get the disclosure documents that are essentially initial loan records that contain all the minute details in connection with terms and conditions, mortgage rates, cost and installments of the loan.
• This must be signed and brought back along with documents such as your bank statements, IDs, references, etc., for validation purposes. Usually these documents are prepared and readied way before the loan application is submitted to the lender.
• The processor double checks all validating papers and may ask for missing records and documents from you if need be.
• Upon completion, the forms are then sent to the underwriter.
• The underwriter will send a Conditions List of further missing items or documents to the buyer.
• Once the buyer completes the required items outlined, it is delivered back to the lender for final authorization. A closing date is then set.
Notice: When you are in contract on a residence, the full loan closure process can take around three weeks to a month.
Questions or concerns? Please make sure to call us, 7 days a week at 800-871-2636 or just submit the quick information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA loan can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers located in more rural locations in Florida can learn more about the 100% USDA mortgage loan at www.usdamortgagesource.com