The Florida FHA mortgage has become the best solution to the majority of first time homeowners in the State of Florida. The Florida FHA home loan program offers several benefits, keeping in mind the financial limitations of most homeowners who are interested in purchasing their very first home. Compared to most conventional home mortgages, the FHA loan eases the purchasing process to the applicant. Besides that the FHA mortgage loan calls for a very low down payment, which makes it simplier and easier for homeowners that may have difficulty saving for the sizeable down payment expected by customary home loans.
What are the most common advantages to choosing an FHA mortgage loan in Sunrise?
• Secure fixed interest rates – One of the greatest advantages for the Florida FHA mortgage loan is the provision of having a fixed 15 or 30 year rate of interest. Compared to the other regular loans where the interest rates can vary, the rate continues to be the same for the entire duration of the mortgage. This timeframe is usually for 30 years. Due to this provision the consumer can budget their specific predetermined monthly installment before hand.
• Minimum down payment – The Government guarantees or supports FHA loans, therefore the applicant has very nominal charges in the process. FHA financial loans call for a minimum 3.5% financial commitment from the borrower. The mortgage loan does make it possible for the property seller to pay for all costs of closing, up to 6% which can be typically enough to take care of virtually any property purchase.
• Simple to Qualify – Prequalifying for a Florida FHA home loan is pretty simple. Because it’s the FHA that covers your house loan, the lenders and lending institutions make it simple for anyone to qualify that meets the base requirements. The key elements of qualifying are generally credit score, income source and employment records.
• Adjustable Interest Rate Option – The FHA mortgage loan originated due to tight budget restrictions of first-time homeowners. This is the reason the FHA features an adjustable rate option for home buyers, which has a very low payment amount and interest rate.
• There are no cash reserves required – When compared to other traditional home loan programs, the Florida FHA home mortgage is a highly appealing option for Sunrise, FL first-time home-owners which have just a little funds saved.
First Time home buyers have to know what to expect before starting the FHA mortgage application process. Being prepared will usually raise your odds in successfully having your FHA mortgage loan approved. Below we have listed a number of tips and some things to consider.
In advance of application:
1. Debt-to-income ratio
Thorough analysis must be done here. Creditors can vary on precise amounts, but a financial debt load that is greater than 41 to 45 percent is high-risk for an FHA loan. You will need two years of regular employment without unexplained breaks in employment history.
2. Credit History
It is typically the tiny problems which will harm your consumer credit rating. Look at your income, credit ranking, as well as rent history that could show up on a credit file. Get all the details taken care of, focusing on a completely clean record.
3. Overall credit score
In 2013, a FICO score of 620 or greater is necessary for the 3.5% down payment with the FHA. In case you came out of a bankruptcy or foreclosure, you would have to have preserved a perfect credit rating since that time (4 years and 5 years respectively) in spite of current credit worthiness.
FHA Loan Application:
• Fill out the Buyer Information request, that lets us know what you have and what you will want. It will allow the FHA loan consultant to contact you to discuss your objectives. Later a full application will need to be done that highlights all things about yourself, the borrower, which will be used in determining whether you are qualified for a mortgage or otherwise. The rate and terms of the loan may also be determined largely by the info in the mortgage application form, credit standing, etc.
• In the event the application is pre-approved, you will get the disclosure docs which are essentially preliminary loan documents that contain all the minute details concerning the terms, loan rates, selling price and installments of the loan.
• This should be agreed upon and returned along with records like you bank account statements, IDs, individual references, etc., for validation purposes. Usually these documents are prepped and readied way before the loan application is submitted to the loan provider.
• The processor double checks all validating papers and might request absent records from the borrower if required.
• When completed, the docs are then submitted to the loan underwriter.
• The underwriter will send a Conditions List of even more missing items or docs to the purchaser.
• When the buyer completes the necessary items listed, it is delivered back to the mortgage lender for final authorization. A closing date is then set.
Please Note: When you are in contract on a home, the overall loan closure process normally takes close to three weeks to a month.
Have Questions? Please be sure to call us, 7 days a week at 800-871-2636 or just complete the quick information request form on the right side of our home page at http://fivestarsmortgage.com. Home owners that presently have an FHA home loan can learn about the FHA streamline refinance program here – http://fivestarsmortgage.com/florida-fha-loan/. Home buyers living in more rural locations in Florida can learn more about the 100% USDA mortgage loan at www.usdamortgagesource.com