The Florida FHA mortgage has become the first solution to the majority of first time buyers in the State of Florida. Florida’s FHA mortgage loan program provides several benefits, bearing in mind the financial limits of many homeowners who are interested in purchasing their first home. In comparison to other conventional mortgage loans, the FHA mortgage loan facilitates the process for the applicant. In addition the FHA loan requires a very low down payment, which makes it a lot easier for homeowners that may have challenges saving for the substantial down payment required by conventional loans.
What are the main benefits in choosing an FHA loan in Mangonia Park?
• Secure fixed loan interest rate – One of the largest advantages for the Florida FHA mortgage loan is the benefit of having a fixed 15 or 30 year interest rate. As compared to other basic loans where the loan interest rates vary, the rate continues to be the same for the full span of the loan. This period is often for 30 years. Because of this provision the consumer can plan their predetermined monthly payment in advance.
• Minimal down payment – The Government guarantees or backs FHA loans, therefore the applicant incurs very minimal charges in the process. FHA mortgages must have a minimum 3.5% financial commitment from the borrower. The mortgage does make it possible for the home seller to pay all costs of closing, up to 6% which is usually enough to handle almost any home sale.
• Quick to Qualify – Prequalifying for a Florida FHA mortgage loan is pretty straight forward. Because it’s the FHA that covers your mortgage loan, the financial institutions and lending institutions make it easy for anyone to qualify when they meet the simple requirements. The biggest components of qualifying are generally credit score, income source and employment.
• Adjustable Rate Option – The FHA loan began due to small budget constraints of first time buyers. That’s the reason the FHA has got an adjustable rate option for home buyers, which has a remarkably low payment amount and interest rate.
• There are not any cash reserves required – In contrast with numerous conventional mortgage programs, the Florida FHA home mortgage is a highly tempting option for Mangonia Park first time homeowners who have a little money in the bank.
First-time home buyers need to know what to expect before beginning the FHA loan application process. Being prepared will often increase your chances in successfully having your FHA mortgage loan accepted. Below we list a number of tips and points to consider.
Prior to application:
1. Debt-to-income ratio
Cautious analysis has to be done at this point. Mortgage lenders can vary on actual amounts, despite the fact that a debt load thatâ€™s higher than 41 to 45 percent is high-risk for an FHA loan. You will need 2 years of consistent employment with no unexplained interruptions in job history.
2. Credit History
It is normally the small things which will damage your credit score. Look at your income source, overall credit score, along with rental history that might be displayed on a credit score. Get all the things on the up and up, aiming towards a clean record.
3. Credit scores
In 2013, a FICO score of 620 or greater is needed for the 3.5% downpayment with the FHA. In the event you came out of a bankruptcy or foreclosure, you will have to have preserved a perfect credit worthiness since then (4 years and 5 years respectively) irrespective of recent credit standing.
FHA Mortgage Loan Application:
• Complete the Buyer Information form, that tells us what you have along with what you may need. It will allow the FHA loan specialist to get hold of you to discuss your primary goal. Later a full application should be filled out that details all about yourself, the borrower, which is used for trying to figure out whether you are qualified to receive a home loan or otherwise. The rate and terms of the loan can also be identified largely by the details in the mortgage application form, credit score, etc.
• In case the application is preapproved, you get the disclosure records which are essentially initial loan documents which have all the minute details in connection with terms, loan rates, selling price and repayments of the mortgage loan.
• This should be agreed upon and returned along with records such as your bank account statements, IDs, references, etc., for validation purposes. These documents are prepared and readied ahead of the loan application is sent to the loan provider.
• The processor reviews all validating records and may ask for absent records from you if need be.
• Upon completion, the docs are submitted to the loan underwriter.
• The loan underwriter will be sending a Conditions List of further missing items or documents to the purchaser.
• After the buyer completes the requested items on the list, it is delivered back to the lender for final affirmation. A closing date is then established.
Note: When you are in contract on a home, the whole loan closure process usually takes close to 3 weeks to a month.
A lot of questions? Please make sure to call us, 7 days a week at 800-871-2636 or simply submit the fast info request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently have an FHA loan can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers located in more rural areas in The state of Florida can learn about the 100% USDA mortgage loan at www.usdamortgagesource.com