The Florida FHA mortgage has become the best choice to the majority of first time home buyers in the State of Florida. Florida’s FHA home loan program provides several advantages, bearing in mind the financial limitations of most homeowners who are considering buying their very first residence. In comparison with most traditional mortgage loans, the FHA mortgage loan facilitates the buying process for the applicant. On top of that the FHA loan involves a very low down payment, which makes it much simpler for homeowners that may have trouble saving money for the big down payment expected by traditional home loans.
What are the most valuable advantages in getting an FHA mortgage loan in Panama City Beach?
• Secure fixed interest rate – One of the biggest advantages for the Florida FHA mortgage loan is the benefit of paying a fixed 15 or 30 year interest rate. Compared to other regular loans where the interest rates vary, the rate remains the same for the full duration of the mortgage loan. This period is normally for 30 years. Because of this provision the borrower can plan their specific fixed monthly installment in advance.
• Minimal down payment – The Federal government insures or supports FHA loans, which means the applicant incurs very nominal charges during the process. FHA financial loans need a minimum 3.5% investment from the applicant. The loan does support the home seller to pay for all closing costs, up to 6% which can be often enough to cover almost any home sale.
• Simple to Qualify – Pre-Qualifying for a Florida FHA home loan is pretty easy. Because it’s the FHA that insures the home loan, the creditors and mortgage lenders make it feasible for anyone to qualify that meets the simple requirements. The primary elements of qualifying are usually credit ratings, income and employment.
• Adjustable Interest Rate Option – The FHA mortgage loan originated mainly because of the limited financial constraints of first-time buyers. For that reason the FHA has got an adjustable rate option for home buyers, which entails a surprisingly low monthly payment and interest rate.
• There are no cash reserves required – In comparison with most traditional mortgage programs, Florida’s FHA home mortgage is a particularly enticing option for Panama City Beach first time homeowners which have a little income in the bank.
First-time buyers should find out what to expect before starting the FHA mortgage application process. Simply being prepared will usually raise your odds in successfully having your FHA home loan accepted. Here we list some basic steps and points to consider.
1. Debt-to-income ratio
Thorough study has to be done at this point. Mortgage companies vary on exact amounts, despite the fact that a financial debt load thatâ€™s above 41 to 45 percent is risky for an FHA loan. You should have 2 years of continual employment devoid of unexplained gaps in job history.
2. Credit History
It is usually the small things which may hurt your consumer credit. Look at your earnings, credit score, together with rent history which might show up on a credit report. Get everything taken care of, shooting for a fully clean record.
3. Credit scores
In 2013, a FICO score of 620 or better is necessary for a 3.5% down payment with the FHA. In case you have had a bankruptcy or foreclosure, you would need to have retained a perfect credit score since that time (4 years and 5 years respectively) irregardless of current credit score.
FHA Loan Application:
• Complete the Buyer Information request, that lets us know what you have and what you may need. This will permit the FHA mortgage loan specialist to contact you to discuss your goals. Soon after a full application will have to be done that highlights all about yourself, the borrower, which is to be used in deciding whether you are qualified for a home loan or otherwise. The rate and loan terms may also be determined largely by the details in the mortgage application form, credit standing, etc.
• In the event the loan application is preapproved, you will get the disclosure records that are essentially initial loan documents that have all the minute details regarding the terms, rates of interest, selling price and monthly payments of the mortgage.
• This must be signed and returned along with other records like bank statements, IDs, individual references, etc., for validation purposes. Usually these documents are prepared and readied before the loan application is sent to the loan provider.
• The processor double checks all validating papers and might request missing paperwork from the borrower if need be.
• Upon completion, the documents are then submitted to the underwriter.
• The loan underwriter will be sending a Conditions List of more missing elements or docs to the home buyer.
• After the buyer finishes the requested items on the list, it is returned to the lender for final consent. A closing day is then established.
Notice: After in contract on a home, the full loan closure process normally takes around three weeks to a month.
Have Questions? Be sure to call us, 7 days a week at 800-871-2636 or just submit the speedy info request form on the right side of our home page at http://fivestarsmortgage.com. Homeowners that presently have an FHA loan can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers living in more rural locations in Florida can learn more about the 100% USDA mortgage at www.usdamortgagesource.com