The Florida FHA mortgage has become the first option to most first time home buyers in the State of Florida. The Florida FHA mortgage loan program features several benefits, keeping in mind the financial limitations of many homeowners who are considering purchasing their first home. When compared with most traditional home mortgages, the FHA home loan facilitates the purchasing process for the loan applicant. On top of that the FHA mortgage loan involves a very low down payment, which makes it easier for homeowners that may have problems saving up the substantial down payment necessary by typical home loans.
What are the most important advantages to choosing an FHA loan in Lake Hamilton?
• Secure fixed interest rates – One of the leading advantages of a Florida FHA home loan is the benefit of having a fixed 15 or 30 year rate of interest. As compared to other standard loans where the loan interest rates can vary, the rate stays the same for the total course of the mortgage. This timeframe is generally for 30 years. Because of this provision the consumer can plan their fixed monthly payment up-front.
• Lowest down payment – The Government insures or supports FHA loans, therefore the applicant incurs very nominal charges during the process. FHA mortgages must have a minimum 3.5% investment from the borrower. The mortgage does permit the property seller to cover all costs of closing, up to 6% which is usually enough to take care of just about any property sale.
• Not Difficult to Qualify – Prequalifying for a Florida FHA loan is rather easy. Since it is the FHA that covers your home loan, the creditors and mortgage lenders make it straightforward for everyone to qualify that meets the standard requirements. The key elements of qualifying are credit ranking, cash flow and job history.
• Adjustable Rate Option – The FHA home loan began as a result of tight financial restrictions of first-time home owners. This is why the FHA features an adjustable rate option for home buyers, which has a relatively low payment amount and interest rate.
• There are no cash reserves required – When compared to many traditional loan programs, the Florida FHA home loan is a really appealing option for Lake Hamilton, FL first time homeowners that have a small amount of revenue saved up.
First-time home buyers have to know what to expect before beginning the FHA loan application process. Simply being prepared will always enhance your chances in successfully having your FHA home loan approved. Here we have listed a number of basic steps and considerations.
In advance of application:
1. Debt-to-income ratio
Thorough assessment should be done at this point. Mortgage companies differ on actual amounts, still a debts load that is above 41 to 45 percent is high risk for an FHA loan. You will need 2 years of regular employment without having any unexplainable interruptions in employment.
2. Credit History
It is generally the tiny problems which can damage your consumer credit. Check your income source, credit standing, together with rental history that might show up on a credit score. Get all of it taken care of, shooting for a spotless record.
3. Credit score
As of 2013, a credit rating of 620 or better is required for a 3.5% down payment with the FHA. For those who have had a bankruptcy or foreclosure, you must have retained a perfect FICO score since then (4 years and 5 years respectively) regardless of existing credit score.
FHA Mortgage Loan Application:
• Fill out the Buyer Information request, which tells us what you have and just what you require. This will allow the FHA mortgage loan professional get in touch with you to discuss your goals. Later a full mortgage application must be submitted that highlights all about you, the purchaser, which is to be used in deciding whether you are qualified for a mortgage or otherwise. The interest rate and loan terms may also be identified largely by the info in the loan application form, credit history, etc.
• In the event the application is preapproved, you will get the disclosure records that are essentially preliminary loan records that have all the minute details in connection with the terms, home interest rates, selling price and installments of the home loan.
• This needs to be signed and brought back along with documents like you bank account statements, IDs, personal references, etc., for verification purposes. Usually these documents are prepared and readied before the mortgage loan application is sent to the mortgage lender.
• The processor double checks all validating papers and may request absent records and documents from the borrower if needed.
• Upon completion, the records and documents will be sent to the loan underwriter.
• The underwriter will be sending a Conditions List of more missing elements or documents to the purchaser.
• When the buyer completes the necessary items outlined, it is returned to the lender for final authorization. A closing date is then set.
Notice: After in contract on a home, the whole loan closing process takes around 3 weeks to a month.
Still have questions? Please make sure to call us, 7 days a week at 800-871-2636 or just 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 refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers residing in more rural places in Florida can learn more about the 100% USDA mortgage loan at www.usdamortgagesource.com