The Florida FHA mortgage has become the best solution to many first time homebuyers in Florida. The Florida FHA home loan program features several advantages, paying attention to the funding constraints of many homeowners who are considering purchasing their very first home. When compared with other conventional home mortgages, the FHA mortgage loan facilitates the purchasing process to the loan applicant. Aside from that the FHA mortgage loan requires a fairly low down payment, which makes it much easier for homeowners that may have problems saving for the sizable down payment required by traditional loans.
What are the huge benefits in getting an FHA mortgage loan in Virginia Gardens?
• Secure fixed interest rates – One of the biggest advantages of the Florida FHA home loan is the benefit of having a fixed 15 or 30 year rate of interest. As compared with other conventional loans where the interest rates can vary, the rate remains the same for the full span of the mortgage loan. This period is commonly for 30 years. Because of this provision the borrower can pre-plan their specific predetermined monthly payment ahead of time.
• Lowest down payment – The Federal government guarantees or backs FHA loans, which means the applicant incurs very minimal fees during the process. FHA home loans must have a minimum 3.5% investment from the borrower. The loan does allow for the property seller to cover all closing costs, anywhere up to 6% which can be typically enough to cover just about any home sale.
• Easy to Qualify – Prequalifying for a Florida FHA home loan is quite simple. Because it’s the FHA that covers your house loan, the loan providers and lending institutions make it straightforward for everyone to qualify when they meet the necessary requirements. The main components in qualifying are usually credit reports, cash flow and employment history.
• Adjustable Interest Rate Option – The FHA mortgage loan began due to limited financial restrictions of first time homeowners. This is the reason the FHA has got an adjustable rate option for home buyers, which features a very low monthly payment and interest rate.
• No cash reserves required – In comparison to numerous conventional loan programs, the Florida FHA mortgage loan is a pretty tempting option for Virginia Gardens, FL first time homeowners that have a small amount of income saved.
First-time buyers must know what to expect before beginning the FHA mortgage loan application process. Being prepared will usually raise your opportunities in successfully getting your FHA mortgage loan approved. Here we list a number of tips and issues to consider.
1. Debt-to-income ratio
Cautious researching has to be done at this point. Lenders can vary on actual amounts, still a debt load that is greater than 41 to 45 percent is risky for an FHA loan. You should have 2 years of continual employment with no unexplained interruptions in job history.
2. Credit Check
It is usually the small things that could damage your credit ratings. Examine your income, credit history, as well as rent history that can show on a credit file. Get every aspect on the up and up, shooting for a good record.
3. Credit ratings
In 2013, a credit rating of 620 or greater is necessary for the 3.5% down payment with the FHA. In the event you came out of a bankruptcy or foreclosure, you will have to have kept a perfect FICO score since that time (4 years and 5 years respectively) irregardless of present credit rating.
FHA Mortgage Application:
• Fill out the Buyer Information request, that lets us know just what you have and just what you will want. It will permit the FHA mortgage loan specialist get in touch with you to discuss your objectives. Soon after a full mortgage application must be submitted that highlights everything about you, the purchaser, which is to be used in figuring out whether you are eligible for a loan or otherwise. The interest rate and loan terms will also be driven largely by the details in the mortgage application form, credit score, etc.
• In the event the application is pre-approved, you will get the disclosure docs that are essentially preliminary loan records that have all the minute details in connection with the terms, rates of interest, selling price and monthly payments of the mortgage loan.
• This should be signed and returned along with documents like you bank account statements, IDs, individual references, etc., for verification purposes. Usually these documents are prepared and readied well before the mortgage loan application is submitted to the loan provider.
• The processor double checks all confirming written documents and may ask for absent records and documents from you if needed.
• When completed, the written documents are then sent to the loan underwriter.
• The loan underwriter will send a Conditions List of even more missing items or records to the purchaser.
• Once the buyer finishes the needed items outlined, it is delivered back to the lender for final consent. A closing day is then set.
Note: Once you are in contract on a home, the overall loan closure process normally takes around 3 weeks to a month.
Have Questions? Be sure to call us, 7 days a week at 800-871-2636 or simply just fill out the quick information request form on the right side of our home page at http://fivestarsmortgage.com. Property owners that currently have an FHA mortgage loan can read about the FHA streamline refinancing program here – http://fivestarsmortgage.com/florida-fha-loan/. Homebuyers living in more rural places in Florida can learn more about the 100% USDA loan at www.usdamortgagesource.com