The Florida FHA mortgage is the best choice to most first time home buyers in Florida. Florida’s FHA home loan program gives several advantages, bearing in mind the funding constraints of most homeowners who are interested in buying their first residence. When compared with most traditional home mortgages, the FHA home loan facilitates the purchasing process for the loan applicant. Aside from that the FHA loan involves a very low down payment, which makes it much easier for homeowners that may have challenges saving up the large down payment required by traditional home loans.
What are the most valuable advantages in obtaining an FHA mortgage loan in Port Richey?
• Secure fixed interest rates – One of the largest advantages of your Florida FHA mortgage loan is the benefit of paying a fixed 15 or 30 year rate of interest. In contrast to other standard loans in which the loan interest rates can vary, the rate remains the same for the total length of the mortgage loan. This timeframe is generally for 30 years. Due to this provision the borrower can plan out their predetermined monthly installment up-front.
• Small down payment – The Federal government insures or supports FHA loans, which means the borrower has very little fees along the way. FHA mortgage loans require a minimum 3.5% investment from the borrower. The mortgage does permit the property seller to pay for all closing costs, all the way to 6% which can be generally enough to handle just about any property sale.
• Quick to Qualify – Prequalifying for a Florida FHA mortgage loan is very easy. Since it is the FHA that covers your house loan, the financial institutions and lending institutions make it easy for anybody to qualify when they meet the primary requirements. The main aspects of qualifying usually are credit rating, earnings and job history.
• Adjustable Rate Option – The FHA loan began due to the tight budget restrictions of first-time home buyers. For this reason the FHA has an adjustable rate option for home buyers, which will incorporate a really low payment amount and interest rate.
• There aren’t cash reserves required – In contrast with numerous conventional mortgage programs, the Florida FHA mortgage loan is a very tempting option for Port Richey first time home-owners that have a small amount of revenue saved up.
First-time buyers need to know what to expect before beginning the FHA loan application process. Being prepared will always enhance your odds in successfully having your FHA mortgage accepted. Below we list a number of simple steps and issues to consider.
1. Debt-to-income ratio
Cautious assessment has to be done at this stage. Mortgage companies fluctuate on precise amounts, still a debt load that is more than 41 to 45 percent is risky for an FHA loan. You absolutely need 2 years of continuous employment without unexplainable interruptions in employment history.
2. Credit History
It is generally the small things which can damage your consumer credit rating. Examine your earnings, credit worthiness, in addition to rent history that may show on a credit report. Get all the things handled, shooting for a clean record.
3. Credit scores
As of 2013, a credit rating of 620 or better is required for the 3.5% down payment with the FHA. For those who came out of a bankruptcy or foreclosure, you must have preserved a perfect credit worthiness since then (4 years and 5 years respectively) irregardless of existing credit standing.
FHA Loan Application:
• Fill out the Buyer Information form, that tells us just what you have and just what you want. This will permit the FHA loan specialist to call you to discuss your goals. Subsequently a full application will need to be submitted that details all things about you, the applicant, which is to be used in figuring out whether you are qualified to receive a mortgage or otherwise. The rate and terms of the loan can also be identified largely by the information in your loan application form, credit scores, etc.
• In the event the loan application is preapproved, you will get the disclosure docs which are essentially preliminary loan records which have all the minute details with regards to the terms and conditions, mortgage rates, selling price and repayments of the mortgage.
• This must be agreed upon and brought back along with other documents such as your bank records, IDs, individual references, etc., for validation purposes. Usually these documents are prepared and readied well before the mortgage loan application is submitted to the lender.
• The processor reviews all verifying documents and may ask for absent docs from you if necessary.
• When completed, the forms will be sent to the underwriter.
• The loan underwriter will be sending a Conditions List of other missing items or docs to the purchaser.
• When the buyer completes the needed items outlined, it is returned to the lender for final acceptance. A closing date is then established.
Please Note: When you are in contract on a residence, the full loan closing process can take close to 3 weeks to a month.
Still have questions? Be sure to call us, 7 days a week at 800-871-2636 or just fill out the short information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that currently have an FHA mortgage can read about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Buyers residing in more rural areas in The state of Florida can learn about the 100% USDA home loan at www.usdamortgagesource.com