The Florida FHA mortgage has become the first choice to most first time buyers in the State of Florida. Florida’s FHA mortgage loan program provides several benefits, paying attention to the budget limits of most homeowners who are interested in buying their first home. In comparison with most conventional mortgage loans, the FHA home loan eases the process to the applicant. Additionally the FHA mortgage loan involves a fairly low down payment, which makes it much simpler for homeowners that may have a tough time saving for the sizable down payment required by standard loans.
What are the huge advantages to getting an FHA mortgage loan in Miramar, FL?
• Secure fixed interest rates – One of the leading advantages of your Florida FHA mortgage loan is the provision of paying a fixed 15 or 30 year interest rate. Compared to the other basic loans in which the interest rates change, the rate stays the same for the total span of the loan. This period is often for 30 years. Because of this provision the borrower can map out their predetermined monthly installment beforehand.
• Low down payment – The Government guarantees or backs FHA loans, which means the applicant incurs very minimal charges during the process. FHA secured loans require a minimum 3.5% investment from the borrower. The mortgage does permit the home seller to cover all costs of closing, up to 6% which is generally enough to handle almost any home purchase.
• Quick to Qualify – Pre-Qualifying for a Florida FHA home loan is pretty easy. Since it is the FHA that insures the home loan, the creditors and banks make it simple for anybody to qualify that meets the basic requirements. The most important components of qualifying are usually credit history, income and job history.
• Adjustable Rate Option – The FHA home loan began due to tight financial constraints of first time home buyers. That’s why the FHA has an adjustable rate option for home buyers, which will incorporate a surprisingly low monthly payment and interest rate.
• There are no cash reserves required – In comparison to other standard mortgage programs, the Florida FHA home mortgage is a pretty enticing option for Miramar first-time property owners who have just a little revenue saved up.
First-time home buyers should find out what to expect prior to starting the FHA home loan application process. Being prepared will often improve your chances in successfully getting the FHA loan accepted. Here we have listed a number of steps and some points to consider.
1. Debt-to-income ratio
Thorough evaluation has to be done at this stage. Creditors can vary on precise amounts, still a debts load thatâ€™s greater than 41 to 45 percent is high risk for an FHA loan. You absolutely need two years of steady employment without having any unexplainable interruptions in job history.
2. Credit History
It is normally the small things which may harm your credit history. Examine your income source, credit standing, in addition to rental history which could show on a credit score. Get everything on the up and up, aiming for a spotless record.
3. Credit scores
In 2013, a credit score of 620 or better is needed for the 3.5% down payment with the FHA. In case you came out of a bankruptcy or foreclosure, you will have to have preserved a perfect credit ranking since then (4 years and 5 years respectively) regardless of current credit rating.
FHA Mortgage Loan Application:
• Fill out the Buyer Information request, that tells us what you have along with what you need. This will allow the FHA mortgage loan specialist get in touch with you to discuss your goals. Subsequently a full mortgage application must be submitted that details everything about you, the purchaser, which will be used for trying to figure out whether you are eligible for a loan or otherwise. The rate and terms of the loan may also be identified largely by the details in the application form, credit scores, etc.
• In case the application is pre-approved, you will get the disclosure records which are essentially preliminary loan records that have all the minute details regarding the terms, home interest rates, selling price and installment payments of the mortgage loan.
• This must be signed and brought back along with other documents such as your bank account statements, IDs, personal references, etc., for validation purposes. Usually these documents are prepped and readied ahead of the mortgage loan application is submitted to the lender.
• The processor reviews all verifying written documents and might request missing documentation from you if need be.
• When completed, the docs will be submitted to the loan underwriter.
• The loan underwriter will be sending a Conditions List of further missing elements or docs to the purchaser.
• After the buyer finishes the required items detailed, it is returned to the lender for final consent. A closing date is then scheduled.
Notice: When you are in contract on a home, the full loan closing process normally takes roughly 3 weeks to a month.
Still have questions? Be sure to call us, 7 days a week at 800-871-2636 or just submit the brief info request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that currently have an FHA mortgage 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 about the 100% USDA loan at www.usdamortgagesource.com