For those borrowers in Florida who are out to get a mortgage loan but have poor credit, can not meet the 3 percent down payment requirement or both, and are looking for loans that are no larger than the program’s loan size limit, then the FHA mortgage loan program is the best option for you.
FHA defined
FHA stands for the Federal Housing Administration. It is governed by the Department of Housing and Urban Development (HUD) and insured by the US government, but is not issued by them. What the HUD does is collect the mortgage insurance from the borrowers, and in case the borrowers suddenly back out, they guarantee the lenders full payment. FHA mortgage loans were developed to support low-income housing loans so they have more lenient standard qualifications regarding credit history and down payment capacity compared to conventional loans.
Major advantages
Typically in an FHA mortgage loan, payments do not exceed 29 percent of the gross monthly income of the borrower and the total debt is not more than 41 percent of his gross income. What is the best about FHA loans is that you can get a loan with as little as 1 percent down payment. Conventional mortgages usually require a 26 to 28 percent and 33 to 36 percent down payment to qualify. Because of the less stringent measures to qualify for an FHA mortgage loan, it is fairly easy to take a loan. What’s more, the income of co-borrowers who do not live in the house can be included in measuring the adequacy of income. In special circumstances, FHA mortgage loans even allow gifts in paying for settlement costs.
Terms
In Florida, the current market offers FHA loans at about the same interest rates and points as traditional mortgage loans and also with the same terms. However, there could be a difference in mortgage insurance premiums. FHA mortgage loans are usually on a fixed-rate mortgage and have tenures of thirty years. The mortgage insurance premium for an FHA mortgage loan of a thirty-year period is 1.5 percent of the total loan amount paid from the beginning, and an additional 0.5 percent of the loan balance to be paid monthly.
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FHA Mortgage loan COMPENSATING FACTORS
Compensating factors are factors that give your FHA home loan request that extra push needed for approval.
For the home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the FHA loan program include:
Minimal Down Payment and Closing costs.
Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.
Easier Credit Qualifying Guidelines such as:
No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.
http://www.fhamortgagefhaloan.com/
Compensating Factors
On FHA home loans where the ratio exceeds FHA guidelines (other that Approved/Eligible findings), the underwriter must list on the MCAW the compensating factors that lead to the approval of the FHA home loan. Any compensating factor used to justify mortgage approval must be supported by documentation. The following are a list of eligible factors per FHA home loan approvals:
A. The borrower has successfully demonstrated the ability to pay housing expenses equal to or greater than the proposed monthly housing expense for the new mortgage over the past 12-24 months.
B. The borrower makes a large down payment (ten percent or more toward the purchase of the property.
C. The borrower has demonstrated an ability to accumulate savings and a conservative attitude toward the use of credit.
D. Previous credit history shows that the borrower has the ability to devote a greater portion of income to housing expenses.
E. The borrower receives documented compensation or income not reflected in effective income, but directly affecting the ability to pay the mortgage, including food stamps and similar public benefits.
F. There is only a minimal increase in the borrower(s)housing expense.
G. The borrower has substantial documented cash reserves (at least three months= worth or payments) after closing. In determining if an asset can be included as cash reserves or cash to close, the lender must judge whether or not the asset is liquid or readily convertible to cash and can be done so absent retirement or job termination.
H. The borrower has substantial nontaxable income (if no adjustment was made previously in the ratio computations).
I. The borrower has a potential for increased earnings, as indicated by job training or education in the borrower=s profession.
J. The home is being purchased as a result of relocation of the primary wage earner, and the secondary wage-earner has an established history of employment, is expected to return to work, and reasonable prospects exist for securing employment in a similar occupation in the new area. The underwriter must document the availability of such possible employment.
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FHA Loan for Florida homebuyers FHA loans are backed by the Government and insured by HUD, the FHA loan program is a safe secure way to buy a Florida home!
FHA loan Program Overview
Easier qualification than any other home loan! Lowest down payment’s! Only 3.5% down required! You do NOT have to be a Florida first time home buyer to use the FHA mortgage program! Government Backed Mortgage! HUD Insured! Higher debt ratios for home buyers. Low Interest fixed rate and adjustable interest rates. No income restrictions! Finance single family, condo, town house and mobile homes. Seller able to pay up to 6% closing costs. Down payment gifts and grants allowed!
Apply today at http://www.fhamortgagefhaloan.com/
Have Questions? Fill out a Quick Response form or Call 954-667-9110 or (Apply Now) and get Approved Today.
The FHA loan program was designed for Florida first time home buyers and current homeowners to help keep dream of home ownership alive. The FHA loan is a godsend for many people who would never have thought they would qualify for the purchase of a Florida home. If you’re in the market to purchase a new Florida home or existing Florida home, the FHA loan is a great program for you to consider.
The government FHA Loan is insured by HUD and is designed to make the dream of home ownership more affordable for all Florida home seekers. The FHA loan has underwriting guidelines that are designed to make it easier to qualify for than conventional Florida loans. Since the FHA mortgage is government backed and insured, is comes with lower interest rates and terms that are designed to protect you.
The greatest advantage with the FHA mortgage is the fact it does not ask that you have a great credit score to get the best rate and maximum amount financed. In fact, under FHA guidelines mortgage applicants credit score should not be used as a factor in underwriting an FHA loan. What does this mean for the Florida homebuyer? People with lower credit scores can use the Florida FHA mortgage program to attain 96.5% financing and a great low interest rate! Have great credit? That’s OK, you’ll still get a great low interest rate and you’ll be able to finance up to 96.5% of the purchase price, you wont find that with a conventional Florida home purchase!
So what types of Florida properties may be purchased using an FHA mortgage? Almost any – single family homes, mobile&modular homes, condominiums, town homes To learn more about properties you can finance with our many FHA loan programs, call 1-954-667-9110
Take a look the full range of benefits you receive as a Florida FHA Loan applicant:
Lower down payment options as low as 3% Easier qualification Up to 6% in seller concessions towards closing costs Credit score not a factor – only credit quality 30 year and 15 year mortgage financing terms Higher debt ratios than conventional loans Fully assumable Non-occupying co-borrowers permitted Streamline refinance at a later date Low interest rates compared to conventional mortgage programs Adjustable and fixed rate loan options 2/1 buy down option Everyone is eligible Lowest down payment for an open ended mortgage program – as low as 3.5% (USDA has income caps and significant property restrictions) Rehab a property with a 203k loan Reverse your mortgage during retirement
We are experts in the government backed HUD insured Florida FHA loan and can help guide you through the process of becoming a Florida homeowner! Contact us today to get started! Have Questions? Fill out a Quick Response form or Call 954-667-9110 or (Apply Now) and get Approved Today.