Florida Mortgage Qualifying is Eazy with FHA Mortgage loans,

FHA mortgage insurance requires a Florida borrower to demonstrate a good repayment history of all debts.  This history serves as the most useful guide in determining a Florida mortgage applicant’s willingness to repay credit obligations and serves as a model in predicting his/her future actions.

When analyzing a Florida mortgage applicant’s credit report, it is important to focus upon the general pattern of credit behavior rather than isolated unexpected temporary occurrences of late payments.  Often times, Florida mortgage applicants will experience a period of financial difficulty in the past and does not necessarily translate into an unacceptable risk.  Reasonable past explanations of the derogatory credit and evidence of offsetting factors (such as a new job or promotion with greater stability and pay, for example) will be necessary.  All recent derogatory credit within the past 2 years must be explained, in writing, by the borrower.

The following is a brief synopsis of the credit underwriting guidelines for FHA mortgage loans:

Lack of credit history: If a Florida mortgage applicant does not have a minimum of 3 trade lines on their credit report, alternative forms of credit may be used.  This would include items such as 12 months canceled rent checks, or verification of rent from a management company, letter from an electric, cell phone, cable, auto insurance payment history or  utility bills, etc, providing proof of a 12 month on time payment history. Included credit obligations: Any installment loans such as student loans, car loans, or other debts with less than 10 months remaining does not need to be included when qualifying for a Florida FHA mortgage loan.  However, consideration is given to a large debt of over $100 a month, regardless of the number of months remaining.  Furthermore, if payments on auto leases with less than 10 months must be included in the qualifying ratios.  The minimum payment on all revolving accounts (i.e. credit cards) is also factored in.  If the borrower has an open revolving account without a balance, $10 per open account should be included when qualifying. Any loan where the Florida mortgage applicant  has co-signed for another party is included with their debts unless the borrower can prove that the other party has made the payments on their own for a minimum of 12 months. Chapter 7 Bankruptcy: Florida FHA mortgage lenders require a minimum of 2 years since the discharge of the Florida bankruptcy.  An explanation of the Florida bankruptcy will be required.  Furthermore, the Florida mortgage applicant should have re-established credit proceeding the bankruptcy with no late payments. Chapter 13 Bankruptcy: Florida FHA mortgage lenders will consider a borrower still paying on a Chapter 13 bankruptcy if the payments to the court have been made for a minimum of 1 year in a satisfactory manner (as verified with the courts) and with the approval of the court trustee. Federal Debts: A mortgage applicant is not eligible for a FHA loan if he/she is delinquent or in default on any federal debt (such as a HUD or VA mortgage, student loans, SBA loans or a tax lien against his/her property).  Florida mortgage applicants  can become eligible by bringing any delinquent accounts current, making satisfactory repayment arrangements with the creditor (generally a 3 month minimum history will be required), or paying the account in full. Judgments: Judgments must be paid or have 12 months of arranged payment history Collection Accounts: Collections do not need to be paid (LOX) needed Foreclosure: A Florida mortgage applicant who has had a property foreclosed upon, or who has given a deed-in-lieu of foreclosure within the previous 3 years, is generally not eligible for a Florida FHA mortgage loan.  However, if it was the result of extenuating circumstances beyond the borrower’s control (such as the death of a spouse, loss of employment, or serious long-term illness, etc.) and the borrower has since re-established good credit, an exception may be granted.  However, extenuating circumstances do not include the inability to sell a house when transferring from one area to another. Non-purchasing Spouse: If a married mortgage applicant is purchasing a property by himself/herself, the credit obligations of the spouse must be included with the application and will be factored in with the borrower’s credit obligations and used to determine the financial capacity of the borrower.  Furthermore, the non-purchasing spouse may be required to sign a security instrument or documentation relinquishing all rights to the property.

eed a Florida mortgage? Consider a FHA mortgage loan

 

FHA mortgage Lender Florida

 Need a Florida mortgage? Consider a FHA mortgage loan

Government-insured Federal Housing Administration loans now make up about 25% of the Florida mortgage market. Here are 5 things you need to know about buying a Florida home with FHA.

 

 1. Chances are good that you’ll come across one. During the heyday of no-money-down lending, you were unlikely to have a Florida buyer using a government-insured Federal Housing Administration (FHA) loan, which lets borrowers purchase a home with a down payment of as little as 3.5%. Now FHAs are the only game in town for anyone who can’t put down the minimum 10% many Florida banks require to get a conventional loan.

About a third of Florida home  buyers have 10% or less saved for a down payment, according to a recent Zillow.com survey. No wonder FHA loans have skyrocketed from 3% to 25% of the Florida mortgage market. While you may not need to take out an FHA mortgage to purchase your next home, there’s a good chance you’ll be selling your Florida home  to someone who does.

2. Borrowers can qualify with any income. Historically FHA mortgage loans have gone mostly to low-income borrowers. But, in fact, there’s no cap on what someone can earn. “The overriding factor that we look at is the ability to make mortgage payments,” says Lemar Wooley of the Department of Housing and Urban Development.

Borrowing limits may be higher than you think too: Though the max is $271,050 in areas where real estate is cheap, Florida buyers can take up to $729,750 in high-priced markets like California or New York.

3. Expect a tough appraisal. The Florida home will need a clean bill of health from a government-approved mortgage appraiser, and the seller must fix any issues before a buyer can close on the loan. A few years ago the FHA eased up on repair requirements for minor problems like missing handrails or cracked windows. But it still won’t budge on leaky roofs or mold damage.

If you’re selling a Florida home, know that an FHA appraisal stays on record for six months, even if the deal goes kaput or the Florida buyer switches lenders. “Get one low FHA appraisal and you’re stuck with it.

4. FHA home loans are not FREE. Nominal rates on FHA mortgages are comparable to those on conventional loans. But y fees on the FHA variety up the cost. There’s a 1.75% upfront charge as well as a 0.55% annual insurance premium for five years and until the principal balance hits 78% of the sales price or the Florida home’s appraised value.

If you’re buying, ask if the seller to pay up to 6% of your closing cost and prepaid taxes and insurance. According to FHA rules, sellers can pay closing costs up to 6% of the home price.

5. They’ve gotten easier to obtain. FHAs home loan  once had a well-deserved rep for onerous paperwork and a longer, more difficult closing than conventional home  loans. But thanks to a new automatic underwriting system and the looser repair requirements, FHA mortgages take only a few days longer than conventional loans to close,.

FHA loans still require written documentation of income, including pay stubs and tax returns. But stricter underwriting across the board means that you will probably need such paperwork no matter what type of loan you get.  

 

FHA Mortgage Lender,

FHA mortgage and FHA home loans in Florida

FHA mortgage and FHA home loans in Florida

 Other FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price Gift for down payment and closing costs allowed. No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 500. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase  3 years after a Foreclosure

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.

http://www.fhamortgagefhaloan.com/

Maybe you are buying your first home in Florida, or perhaps you’re relocating to Florida from another state. Then again, you may be a long-time Florida resident who is looking to either refinance your current Florida mortgage or take out a home equity loan for Florida home improvements. Regardless of your mortgage application status, it’s important that you educate yourself on Florida FHA home loans before shopping for a Florida home and/or Florida mortgage. This Summary explains the benefits and what you will need to know before seeking a FHA home loan in Florida:

 

The median price of a home in Florida is $249,500. Recently, homes in Florida have been appreciating at rates well above the national average. As a result, income levels in many parts of Florida are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Florida are below the national average, Florida has one of the lowest levels of home affordability in the nation.

In Florida, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Property Disclosure Statement. This disclosure, completed by the seller of the Florida home, requires the Florida home seller to list all of the property that will be included in the purchase including refrigerator, stove, fans, blinds alarm system, etc. and explain aspects and conditions of both the included property and of the Florida home itself. This document requires the seller to disclose any material defect that may affect the value of the home and potential problems that may discourage the Florida home buyer from putting an offer in on the home.

Florida Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, Florida mortgage applicants who are issued large FHA mortgage amounts are guaranteed a fixed rate mortgage. Florida law also prohibits the charging of interest more than one day prior to the recording of the FHA mortgage even if the borrower received the loan prior to that time.

In December of 2001, Florida law enacted a set of anti-predatory lending laws in order to help protect Florida homebuyers from predatory mortgage lenders. Some of the provisions of this new set of Florida mortgage laws include the prohibition of a Florida lender charging points and fees in excess of 8% of the total principal financed amount, the prohibition of the Florida FHA mortgage company issuing an FHA loan to a mortgage applicant in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance.

If you’re buying a Florida home in the state of Florida , you qualify for both federal and state FHA, USDA, and VA loans. Florida First-time home buyers qualify for Florida FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for an FHA home loan in order to cover down payment and closing, prepaid tax and insurance costs. Teachers and other Florida mortgage applicants and professionals who work in an educational capacity may qualify for Florida Extra Credit Teacher Home Purchase Program, a down payment assistance loan with low rate interest.

In addition to FHA loans, the state of Florida also offers comparable programs to persons with disabilities or Florida mortgage applicants who live with and care for people in Florida with disabilities. The state o Florida also offers several unconventional loans designed to aid Florida mortgage applicants with the costs of their monthly mortgage payment. For example, Florida’s Interest Only FHA mortgage loan provides qualified FHA mortgage appointments and other Florida homebuyers with a 100% financing 40year FHA mortgage loan that only requires payments toward the accrued interest on the FHA mortgage for the first five years of the FHA mortgage loan — Florida mortgage applicants who do not have to pay toward the principal amount borrowed until after the first five years. The criteria for each of these Florida home loans vary depending on the area and county of Florida in which you are applying for the FHA mortgage. Specific FHA home loan  requirements can be obtained through the Florida FHA Housing Finance Agency.

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