All about FHA Mortgage Insurance Premium and How to Avoid or Get Rid Of It

Monday, April 18th, 2011 at 5:01 pm

Write-up by Mortgage Guru

When you are acquiring a new home, you have often heard this term known as Private mortgage insurance (PMI), which is an insurance you are necessary to pay if you are paying less than 20% of your down payment to a standard lender. Even so, when we speak of FHA mortgages, the down payments are stated to be low, at times as low as three%, but they too need FHA mortgage insurance coverage premium for lowering down payments. Just like any private mortgage insurance the objective of FHA mortgage insurance premium is to protect the lender. When borrowers have minimal equity in their homes, the risk to the lender that the borrower may possibly default is greater as most borrowers will have nothing significantly to shed by walking away and letting the bank foreclose on the house. This write-up focuses on what is FHA mortgage insurance coverage and what are your possibilities for avoiding or getting rid of it.FHA loans have low down payment specifications and much less stringent revenue and credit specifications in comparison to conventional loans, a boon to minority borrowers, 1st time house buyers and borrowers who have troubled credit background. With such less than ideal borrowing characteristics, insurance coverage is a type of guarantee to the borrower that he would at least be capable to recoup the losses in an event exactly where the borrower stops mortgage payments or walks away. It may possibly seem that it is the interest of the borrower that is taken care of and the purchaser is not protected. But without insurance many people won’t be ready to get loans until larger down payments are produced, as banks would view it as high threat. Therefore a lot of people find paying mortgage insurance coverage premiums a far better alternative than waiting many years until they have a high sufficient down payment to prevent it.So how significantly does one pay towards such insurance? FHA calls for an upfront payment of mortgage insurance, which as of 2009 costed you about 1.five% of your total mortgage quantity. You could choose to pay it when you close your loan or roll it with total mortgage quantity. It is recommended to pay this amount upfront since by rolling it with your loan it may be lot high-priced in the long run. It might increase your down payment from three.five% to nearly 5%. Hence you need to save much more before you buy.But if you have rolled it in your loan, you are not obligated to pay the monthly premiums indefinitely. If the term is longer than 15 years, they will end when the loan-to-value hits 78 %, as extended as the borrower has paid the premiums for at least 5 years. If the mortgage term is 15-years or less, and the initial loan-to-worth was 90 % or far more, the premiums finish when the loan-to-worth reaches 78 %, no matter how many premium payments the borrower has made. Once more if property prices enjoy, you may be ready opt for FHA refinancing and your way out of private mortgage insurance coverage. For this to perform, your home’s worth will require to have appreciated enough to give you 22% equity in the house. If you are able to refinance within the very first two to 3 years of the initial acquire, you may be entitled to a partial refund of the up-front mortgage insurance coverage premium.Once again by FHA mortgage refinancing you may refinance from a FHA loan to a standard loan. Lenders who underwrite loans to Fannie Mae or Freddie Mac, the nation’s two biggest government-backed mortgage investors, do not demand mortgage insurance if the loan amount is less than 80 percent of the home’s value. You may possibly take quotes from three to 5 mortgage lenders for your refinancing and compare the options and determine which loan type is very best for you. You might apply with a lender who will give you a very good mixture of low interest and low fees.

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Florida Bad Credit Mortgage, 97% W 530 FICO, Florida Bad Credit home loan

Monday, October 26th, 2009 at 10:16 am

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The Federal Housing Administration (FHA) runs several FHA Bad Credit mortgage programs to promote home ownership in Florida. In most cases, Bad Credit FHA home loans are mortgages obtained with the help of the FHA. With a small down payment today only 3.5%, Florida Bad Credit homebuyers buyers can purchase a home. FHA loans make it easier for Florida Bad Credit homebuyers to qualify for a Florida Bad Credit mortgage,

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price
100% Financing options available
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:

No minimum FICO score or credit score requirements.
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.

Apply today at www.FHAmortgagePrograms.com

www.FHAmortgageFHAloan.com

Bad Credit home loans In Florida

Getting a Florida bad creidt Mortgage with isn’t as easy as it was a year or two ago. However, it isn’t as impossible as some news reports make it seem. Even Bad Credit Floridians with bad credit reports which reveal past financial sins still sometimes get to the promised land of mortgage approval. Most Florida Bad Credit mortgage applicants and Refinance clients do so with the help of a skilled and experienced Florida mortgage lender who specializes in Florida FHA bad credit home mortgages to Refinance or Purchase a Florida home

For the Florida Bad Credit home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Most Florida mortgage applicants didn’t know this but FHA has No minimum credit score requirements. Its the Florida FHA approved mortgage lenders that set minimum credit score requirements. At FHAmortgageprograms.com we can go down to a 530 FICO score when most Florida banks and other Mortgage lenders require a minimum 620 FICO. Some highlights of the Florida Bad Credit FHA mortgage program include:

Minimal Down Payment and Closing costs.

Down payment less than 3.5% 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.
Purchases (Min 530 score)

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements.
FHA will allow a home purchase 2 year after a Bankruptcy.
FHA will allow a home purchase 3 years after a Foreclosure.

Additional Conditions include:

12 month cancelled checks or Management VOR
Must have 3 good recent trade lines Can you ALT CREDIT such as Cable, Cell phone, Electric, Cable, Car Insurance, ect.
Payment shock limited to 1.5 times
33/45 DTI max
No late’s or collection in last 12 months
NO late’s after BK

Bad Credit Florida first time home buyers and other borrowers, the FHA home loans can have key advantages:

Easy Qualification – The FHA loan has No minimum Credit score requirement and insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Down payment Requirements – FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Down payment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan.

FHA Loans Are Fully Assumable - When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

FHA Loans for Bad Credit Florida Mortgage Applicants

If you have what is known in general as bad credit, and you are trying to obtain a home loan in Florida, then we encourage you to work with an experienced Florida Mortgage Lender with a track record of funding even the most difficult bad credit Florida mortgage loans.

As a bad credit FHA mortgage specialist we have been helping borrowers with bad credit find the right lenders, gather their loan documents, and present complete Bad credit loan packages to Florida bad credit lenders for over a decade. Our technique really comes down to understanding what a Florida Bad credit underwriter is looking for and putting together a complete and thorough Bad Credit loan package.

For some Florida mortgage applicants , it’s the only way to get a Bad credit lender to say yes to a home loan. This is especially the case for a borrower with Florida bad credit mortgage issues.

At FHAmortgagePrograms.com, we know that a temporary set back like a job loss or car accident can leave you with damaged credit even though you have worked hard to meet all of your financial obligations for most of a lifetime. This episode can affect credit ratings quickly and adversely affect the loan process when applying for your Florida Bad Credit mortgage.

We feel the Florida mortgage applicant with less than perfect credit is the one who benefits the most from working with an experienced Florida mortgage lender. A good Florida mortgage lender knows which lenders have the best programs for borrowers with poor credit and knows how to present an application truthfully and ethically in the strongest light possible. No, we won’t exaggerate or misrepresent the facts on your behalf; however, we will work to properly represent you and explain why the situation you are in exists.

Your credit report is the key factor for many of the Florida Bad Credit mortgages we offer, but it is not the only factor. With an experienced Bad Credit Florida Mortgage professional from FHA mortgage programs working on your behalf, you may be pleasantly surprised at the Florida bad credit home loan quote you get from our network of quality Florida mortgage lenders.

We can help you take an objective look at your Florida home loan options regardless of your past credit history. Our experienced mortgage pros are very skilled at examining your credit report. And our Florida bad credit home loan specialists are happy to offer you free advice on how to clean up your credit report in preparation for your home loan process.

For some FLoirda bad credit mortgage applicants, the hardest lifting takes place weeks before the mortgage application. It’s never too soon to pay down collections or settle some old judgments to incease your score and purchase a FLorida home. If you have a weak credit report but want to get a Florida mortgage or refinance your existing one, now is the time to get started. As you can see FHA mortgage loans offer Florida mortgage applicants that have had difficulty in the past the ability to qualify for a Florida mortgage.

It’s actually better for borrowers with bad credit right now than it was before 1990. Before 1990, if a borrower did not qualify for a conventional or government loan, he or she was out of home loan options. The emergence of lenders willing to serve those with poor credit has been a godsend for the borrower who recognizes that a Florida bad credit home loan is a temporary loan.

Used properly with good financial planning, a subprime home loan serves the bad credit borrower for 2-4 years while he or she demonstrates the discipline to pay financial obligations on time. Once the healthier financial pattern yields a higher middle credit score, the borrower can apply for a government insured FHA home mortgage or a fixed rate conventional mortgage.

Even for mortgage borrowers with bad credit, 1st Continental Mortgage has found ways to secure financing for a decade.

30 year fixed rate mortgages for persons with damaged credit to purchase homes;
Fixed rate mortgages with one, three, or five year Interest Only periods;
Limited opportunities on loans for purchasing or refinancing single and doublewide Mobile Homes on land for buyers with low FICO scores in Polk County and the other Florida counties we serve;
A range of Jumbo and Super Jumbo home loans for those borrowers seeking to purchase executive homes

Article Source:http://www.articlesbase.com/mortgage-articles/florida-bad-credit-mortgage-97-w-530-fico-florida-bad-credit-home-loan-1381514.html

Florida Bad Credit Home Loan, FLorida Bad Credit Mortgage, 97% W/530

Wednesday, October 7th, 2009 at 11:59 pm

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Bad Credit FHA Mortgage In Florida

At FHAmortgageFHALoan.com its our goal is to make your Bad credit FHA home loan east- even if you have bad credit from past credit problems. That’s why http://www.FHAmortgageprograms.com has partnered with several preferred, nationally recognized FHA mortgage lending partners that offer a range of FHA mortgage loan programs for Florida mortgage applicants with varying credit histories. We have helped many people across Florida with less than perfect credit get the home loan they need

Getting a Bad Credit Florida Mortgage with bad credit isn’t as easy as it was a year or two ago. However, it is not impossible to get approved for a bad credit mortgage in Florida.. Even Bad credit Floridians with bad credit reports which reveal past financial troubles still qualify for a Bad credit Florida FHA mortgage. Most Florida FHA mortgage applicants get approved to purchase or refinance a Florida home with the help of a skilled and experienced Bad Credit Florida mortgage lender who specializes in Florida FHA bad credit home mortgages.

Florida FHA Loans Under 620 Credit Score

Refinance’s ( Min 530 score)

o 0×30 on Mortgage

o 35/45 MAX DTI

o No cash in hand

o Tangible net benefit

o NO late’s after BK

o NO consumer lates in last 6 mths

http://www.FHAmortgagePrograms.com

you are like millions of others Floridians to keep up with credit card bills, car payments and a student loan on a reduced, or non-existent income, you may think that a FHA home loan is out of reach. In truth, loans are more difficult to obtain these days, but you may be surprised that there are still ways to get a FHA home loan in Florida with bad credit.

Why buy a Florida home Now?
Now could be your best chance ever to own a Florida home. There is a ton of Florida homes on the market about 11 months worth as of July 2009, so there is a wide selection of Florida home to choose among, especially if you are flexible about where you are willing to live. And Florida homes have depreciated across the board an average of 24 percent since 2006, so there are lots of great deals at discount prices. And, on top of it add to that the lowest interest rates, and you have a perfect storm of opportunity for the Florida home buyer.

You can’t get an FHA loan if you don’t apply. But where should you look if you have Bad Credit? And you want to buy a Florida home?

Read on for a Few steps to get a FHA mortgage loan in Florida , even if you have bad credit.

Get in the Game
First, consider an FHA backed home loan. FHA loans are designed for Florid a mortgage applicants with less than stellar credit, and the interest rates at historic lows FHA loans are usually less expensive than rates on sub-prime loans, sometimes up to three percentage points less. Our database includes Bad Credit Florida FHA lenders.; reaching out to them is free and they can give you free advice and a quote or Florida mortgage pre-qualification.
Look for Help from Experts in Bad Credit Florida Mortgage Loans
While you are online, use one or more comparison shopping sites for bad credit Florida mortgage lenders. Typically, you enter your information just once for access by multiple Florida bad Credit mortgage lenders. Since these FHA mortgage lenders are focused on bad credit loans, they know the ins and outs of qualifying Florida mortgage applicants with low 500+FICO scores and which Florida mortgage lenders will accept which kinds of Florida Bad credit problems.
Improve your Odds by Forgoing Jumbo Loans
If your a Bad credit mortgage applicant , conventional mortgage lenders won’t touch you with a ten-foot pole unless you have a huge down payment, more than 40%. Then you can get a loan of up to $417,000 and it can be underwritten electronically rather quickly. Otherwise, stay within FHA loan limits in your Florid area of choice.. That means a fairly modest Florida home is your best bet if you have a low down payment and some past credit problems Jumbo home loan financing is out there–but it’s very hard to get– you have to prove you can afford the higher monthly mortgage payments, a bad credit Florida mortgage lender that specializes in jumbo loans charges much higher mortgage rates.
Understand New versus Existing Florida Home Prices and Sales
There are two kinds of Florida homes on the market: you will fid existing homes and new Florida homes. Traditionally, the percentage of sales is about the same for both while the supply of existing Florida homes is larger. That may not be true in some areas. Florida , for example, is offering a $8,000 tax credit to those who buy newly-constructed Florida homes. In distressed Florida housing markets, deal-seekers may have to decide between negotiating with a struggling Florida developer or a bank entertaining a short sale. The short sale might be a better price but these transactions often take months and often fall through. If the Florida developer is still the legal owner of the new home the construction might be a faster way to go.
Understand the Appraisal
Appraisals are independent evaluations of the value of the Florida home. If an appraisal comes in lower than your offer, you can still go forward with your Florida home purchase–but you are in an excellent position to negotiate a lower price on the Florida home of your choice.. If you are getting a Florida FHA mortgage loan, your purchase contract explicitly states via “HUD/FHA amendatory Clause” that you cannot be forced to complete a transaction if the Florida home appraises for less than the purchase price. If your Florida home appraisal comes in higher than the sales price, you still get to buy at the lower price if you have a valid Florida real estate contract and have obtained FHA mortgage financing.
Understand Interest Rates and Timing
Florida Bad credit mortgage loans are going to cost a few points more than loans for Florida mortgage applicants with solid credit history, so interest rates are especially important to those Florida Bad Credit applicants with poor credit. Currently, FHA interest rates are relatively low right now, they are fluid, which means that Florida bad credit mortgage applicants could end up with a higher interest rate if they dont act fast. One good thing about today’s soft Florida real estate market is that, rather than asking for a price reduction from a Florida home owner, you can ask for them to pay enough points to buy your FHA bad credit mortgage loan rate down to something manageable. It shouldn’t matter to the seller if they drop the price 5% or pay 5% to get you a good interest rate.

Remember, you can’t win if you don’t get in the game. so forget about rejection and start filling out some bad credit Florida mortgage loan applications.

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http://www.fhamortgageprograms.com/florida/Dade-County/
http://www.fhamortgagefhaloan.com/
http://www.fhamortgageprograms.com/faq/fha.shtml
http://www.fhamortgageprograms.com/florida/Broward-County/

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Hot Mortgage Terms You Need To Know

Sunday, August 9th, 2009 at 2:11 am

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Are you considering purchasing a new home? If you are, you should know that this may very well be a very good time to buy a house. The housing market is sluggish, which means that prices tend to be lower and so do interest rates. Also, there are more houses from which to choose. This surplus of houses on the market is good for the buyer; basic laws of supply and demand dictate that the more there is of something (in this case houses), the less it tends to cost.

If you are going to purchase soon, however, it is important that you understand the terminology used regularly in the real estate world. Common mortgage terms include interest rates, length or term of loan, closing costs, variable rate loans, origination fees, document taxes, home equity, acceleration, amortization, conventional financing, down payment, FHA loans, fixed rate loans, points, and private mortgage insurance (PMI).

The interest rate is the amount of money the lender is charging you in order to borrow the loan. This is expressed in terms of percent. Of course, the lower the interest rate, the less the cost of the loan.

The term of the loan is also referred to as the length of the loan. This is how long you will be expected to make payments on the mortgage. In years past, most mortgages were twenty years. Now, thirty years is most common.

Closing costs are any fees associated with the actual transaction of buying and selling a home. These include realtor’s fees, title insurance fees, document stamp taxes, the cost of necessary repairs to the home (if the repair company has agreed to be paid at closing), points, and other miscellaneous costs.

Variable rate loans are the “opposite” of fixed rate loans. With a variable rate loan, the percent you pay in interest can go up and down according to the prime interest rate. With fixed rate loans, the interest percent remains the same throughout the life of the loan.

Points, also called loan discount points, are fees that are charged to the buyer from the lender. These fees are prepaid interest and can add quite a bit of cost to your closing. One point is equal to one percent of the loan amount. If you are borrowing $100,000 and are assessed one point by the lender, you will have to pay $1000 of prepaid interest when all the paperwork is done at your closing.

Private mortgage insurance (PMI) is a type of insurance that allows the buyer to put down a smaller down payment on the home. Many lenders will require that you purchase PMI if you are putting less than twenty percent down.

A down payment is the amount of money you are paying out of your own pocket toward the purchase of your new home. The selling price of the home (plus all fees and other costs) minus the amount of the mortgage is equal to your down payment. Most lenders require you to have a down payment of twenty percent or carry PMI.

Marcilio David is a Cardiologist and Internet Entrepreneur. Learn more tips and tricks about choosing the best mortgage, and a FREE Mortgage Ebook download at The Mortgage Guide

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Florida FHA Loan Information from a Florida FHA mortgage lender

Monday, August 3rd, 2009 at 4:03 am

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Florida FHA loan Information from an FHA lender

An FHA loan is a federal insured mortgage loan that is made by a private Florida mortgage lender that is insured by the Federal Housing Administration. The FHA loans are only provided by federally qualified lenders.

FHA loans have historically allowed lower income Floridians to borrow money for the purchase of a home that they would not otherwise be able to afford. The FHA mortgage program originated during the Great Depression of the 1930s to stimulate the economy and get people buying homes again when the rates of foreclosures and defaults rose sharply. The FHA loan program provides lenders with sufficient insurance to protect against loss in a case of default. Some FHA loan were subsidized by the government, but the goal was to make it self-supporting, based on insurance premiums paid by Florida borrowers.

Over time, private Florida mortgage insurance (PMI) companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI.

On August 31, 2007, the FHA added a new refinancing program called FHA-Secure to help borrowers hurt by the 2007 subprime mortgage financial crisis.

The history of FHA loans

The National Housing Act of 1934 created FHA or Federal Housing Administration which was established primarily to increase home construction, reduce unemployment, and operate various FHA loan insurance programs. FHA does not loans, nor does it plan or build houses. As in the Veterans Administration’s VA loan program, the Florida mortgage applicant must qualify for the loan though a private Florida lending institution. This financial organization then may ask if the borrower wants FHA insurance on the loan or may insist that the borrower apply for it. The federal government, through the Federal Housing Administration, investigates the applicant and, having decided that the risk is favorable, insures the lending institution against loss of principal in case the borrower fails to meet the terms and conditions of the mortgage. The borrower, who pays an insurance premium 1/2 percent on declining balances for the lender’s protection, receives two benefits: a careful appraisal by an FHA inspector and a lower interest rate on the mortgage than the lender might have offered without the protection.

For the Florida 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 Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3.5% 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.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or visit www.FHAmortgagePrograms.com

For Florida first time home buyers and other borrowers, the FHA home loans can have key advantages:

Easy Qualification – The FHA loan insures Florida mortgage lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify than any other mortgage program..

Minimal Down payment Requirements – Florida FHA loans work with as little as 3.5% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your loan officer can point you to many Down payment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Miami, Jacksonville, Fort Lauderdale or any Florida city we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, FHA/HUD can allow the lender to place past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an Florida FHA loan.

Options for Manufactured Housing – Under certain conditions, you can even finance a Florida Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

FHA Home Loans for Purchasing a Florida Home

Although Florida FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Florida is not much different from applying for conventional financing. In fact, for many Florida mortgage applicants learn that the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.

At 1st Continental Mortgage, we have been working with the FHA program for many years. We’re experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It’s one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.

You may be surprised at how flexible Florida sellers are in the current market and how many programs there are that provide Down payment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!

The FHA loan program offers excellent fixed rate options and never a prepayment penalty. If other Florida mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call to compare the costs of getting an FHA home loan for your home purchase. Call 1-800-570-0448 to speak with an FHA loan expert before accepting any conventional mortgage quote as the best you can do!

History of FHA loans

Until the latter half of the 1960s, the Federal Housing Administration served mainly as an insuring agency for loans made by private lenders. However, in recent years this role has been expanded as the agency became the administrator of interest rate subsidy and rent supplement programs. Important subsidy programs such as the Civil Rights Act of 1968 were established by the United States Department of Housing and Urban Development.

In 1974 the Housing and Community Development Act was passed. Its provisions significantly altered federal involvement in a wide range of housing and community development activities. The new law made a variety of changes in FHA activities, although it did not involve (as had been proposed) a complete rewriting and consolidation of the National Housing Act. It did, however, include provisions relating to the lending and investment powers of federal savings and loan associations, the real estate lending authority of national banks, and the lending and depositary authority of federal credit unions.

Further changes occurred in the 1977 Housing and Community Development Act, which raised ceilings on single-family loan amounts for savings and loan association lending, federal agency purchases, FHA insurance, and security for Federal Home Loan Bank advances. In 1980 the Housing and Community Development Act was passed; it permitted negotiated interest rates on certain FHA loans and created a new FHA rental subsidy program for middle-income families.

On March 6, 2008, the Florida “FHA Forward” program was initiated. This is the part of the stimulus package that President Bush had in place to raise the loan limits for Florida FHA loans.

Thomas Martin
Florida FHA Loan specialist

http://www.fhamortgageprograms.com/florida/,

http://www.fhamortgageprograms.com/florida/Miami/
http://www.fhamortgageprograms.com/florida/Jacksonville/
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Florida FHA Loan, Florida FHA home loan, ((NO MIN FICO))

Sunday, July 26th, 2009 at 11:09 am

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Florida FHA Loan Qualifying

In General it’s easier to qualify for Florida FHA home loan compared to conventional loans and have lower down payment requirements. Unlike a conventional mortgage that is credit score driven; FHA loans do not have a minimum credit score requirement. This helps first time home buyers and other Florida buyers with bad credit qualify. The FHA loan limits in Florida vary deposing on the county and how much FHA will allow you to borrower depends upon your income. FHA loans typically will all a Florida mortgage applicant to spend up to 1/3 of his or her Gross monthly income towards the housing expense. So if you bring in $3000 per month before taxes. FHA loans allow you to spend up to $1000 or 1/3 of your gross monthly income (before taxes) on your Florida home expenses. The housing expense includes the mortgage payment plus the monthly taxes and insurance. Not to worry so much about past credit issuers, you should have a reasonable credit history for the past 12 months and have stable predicable income likely to continue in order to qualify for a low FHA mortgage rate in Florida.

Benefits of FHA loans are:

Only 3.5% down payment requirement or $3500 down payment per every 100K.
Seller can pay up to 6% of your prepaid taxes, insurance, doc stamps mortgage stamps, intangibles, title insurance and all other closing coast associated with your home purchase.
No Income Minimum or Limits
Tax deductible interest write-off payments on mortgage when you file
Acquire equity in you home over time
FHA loan closing costs are regulated
Lenient credit criteria

The Ins and Outs of a Florida FHA Mortgage

FHA/HUD approved private Florida FHA mortgage lenders like www.FHAMortgagePrograms.com to originate FHA aka Federal Housing Administration (FHA) loans in Florida. Florida FHA mortgages are popular with first time homebuyers and Florida buyers with less than perfect credit because under current FHA guidelines FHA does not even consider credit as a factor when approving Florida FHA loan. Florida FHA loans are based on the lower of purchase price or the appraisal value. Federal housing Administration loan limits are based on the location of the property. FHA loan limits vary in Florida, depending on the county and are available at fixed interest rates of either 15 or 30 year terms.

Benefits of Florida FHA loans:

No Min FICO!
Low down payments
Minimal closing costs
Gifts and Down payment assistance OK
Liberal credit requirements
No cash reserves required

The Federal Housing Administration (FHA) in Florida administers education to homeowners in Florida. These FHA Mortgage programs operate through lending institutions approved by FHA. FHA/HUD and the Florida Mortgage Association conduct a training programs and loss mitigation seminars to reduce the amount of Florida FHA loan defaults.

Florida FHA Loan

First time homebuyers and moving up buyers with good or bad credit can take advantage of FHA home loans in Florida. FHA Home Loans to help Florida homebuyers overcome financial barriers that prevent most from purchasing a Florida home. FHA home loans are easier and less expensive for Florida mortgage applicants with less than perfect credit.

FHA credit underwriting make it easy to obtain a Florida FHA loan:

Judgments don’t have to be a paid off.
Lack of credit history. If you do not have a minimum of 3 trade lines in the credit report, you may use an alternative credit form. These include rental history, utility bills, auto insurance payment history etc.
Bankruptcy. If you are in bankruptcy, you have to wait for 2 years in order to obtain FHA loans in Florida. The bankruptcy must be offset by credit being reestablished with no late payments.
Foreclosure. Ensure you do not have a property foreclosure in the previous 3 years. However, a FHA home loan in Florida may be granted, if the foreclosure is the result of extenuating circumstances.
Non-purchasing spouse. The credit obligations of a non-purchasing spouse should be included with the application. A non-purchasing spouse also may be asked to sign a security instrument.
Federal debt. Ensure you do not have any federal debts. Federal debts include VA mortgage, student loans and SBA loans.

http://www.fhamortgageprograms.com/florida/
http://www.fhamortgageprograms.com/florida/Orlando/
http://www.fhamortgageprograms.com/florida/Arcadia/
http://www.fhamortgageprograms.com/florida/Cape-Coral/
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml

Article Source:http://www.articlesbase.com/mortgage-articles/florida-fha-loan-florida-fha-home-loan-no-min-fico-1070058.html

Florida FHA loan, Florida FHA Mortgage ((Down to 530 FICO))

Monday, July 20th, 2009 at 4:08 am

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Florida FHA Loan, Florida FHA home loan down to 530O

Under 620 Credit Score

Purchases (Min 530 score)

12 month cancelled checks or Management VOR
Must have 3 good recent trade lines
Payment shock limited to 1.5 times
33/45 DTI max
No late’s or collection in last 12 months
NO late’s after BK

Refinance’s (NO Min score)

o 0×30 on Mortgage

o 35/45 MAX DTI

o No cash in hand

o Tangible net benefit

o NO late’s after BK

With the Help of HUD/FHA Florida mortgage applicants can now own a home with less than stellar credit. The fact is, there is a wide range for FHA loan programs available to Florida mortgage applicants with a minimum credit score of 530. The real truth is, FHA/HUD loan programs do not consider your credit score. Many Florida mortgage applicants find this very difficult to believe that under HUD/FHA guidelines that there are NO MINIMUM CREDIT SCORE requirements. It’s the private Florida FHA approved mortgage lenders that set the minimum credit score requirement. Today most walk-in Florida banks require a minimum of 620 credit score to qualify for a Florida FHA mortgage. With an FHA loan only credit quality is used when HUD/FHA endorses mortgages made to Florida loan applicants. FHA home loans give Florida mortgage applicants who would have been declined solely based on a lower credit score the opportunity to own a home. Because of the easy qualify guidelines that only come with an FHA home loan Florida mortgage applicants can now qualify for a home with a low fixed interest rate mortgage.

Florida home loan applicants should know the advantages to the FHA home loan. FHA loans were created to help increase homeownership during the great depression. For the Florida mortgage applicant FHA home loans simply the purchase of a Florida home making it easier and less expensive then other Florida mortgage programs.

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 2 years after a Bankruptcy.
- FHA will allow home purchase 3 years after a Foreclosure.

Florida FHA mortgage Questions

Florida Quick FHA Mortgage Application

Thomas Martin
Florida FHA mortgage exspert
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
http://www.fhamortgageprograms.com/florida/Miami/
http://www.fhamortgageprograms.com/florida/Jacksonville/

Article Source:http://www.articlesbase.com/mortgage-articles/florida-fha-loan-florida-fha-mortgage-down-to-530-fico-1051657.html

FHA Mortgage Guidelines for Florida Buyers =((97%w 530 FICO))

Sunday, July 5th, 2009 at 4:00 pm

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Florida FHA Mortgage Lender

Forida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida 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 Florida 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 purchase 3 years after a Foreclosure.

FHA Requirements:

Owner occupied, full doc, 1-4 Unit, Florida Townhome, Condo, Mobile, modular Florida home.
Maximum loan size requirements vary and are determined by state and county. See (www.hud.gov) for specific information.
Max LTV 97% on purchase 1-4 Florida home.
Max LTV 85% on cash out refinance on 1-2 unit properties (cash out and debt consolidation are treated the same)
Must own and occupy property at least 1 year with no lates or max 85% / No non-occupant co-borrower
Max LTV 85% on 3-4 unit properties, loans with mortgage lates and properties owned less than 1 year.
The lesser of appraised value or original purchase price will be used when property has been owned less than 1 year

FHA Guideline Summary- Full Doc

4506 required on all loans
Wage Earner - 2 years W2′s and current pay stub (4506 is required and checked prior to close)
Self Employed Sole Proprietor/1099 commissioned
2 years signed and dated tax returns (all schedules)
YTD P & L from accountant
Self Employed Partnership or S Corp
2 years signed and dated personal and business tax returns (all schedules)
YTD P&L from accountant
2 years continuous employment necessary for primary borrower (does not have to be same job)
Part-time jobs for any borrower must have 1 year minimum continuous employment

FHA Guideline Summary- Assets

Reserves
Refi- Not Required
Purchase- 3 months PITI(S&S for 3 months) required on 3-4 units only
Purchase Down Payment/Funds to close
Must have minimum 3% into transaction
Funds must be seasoned minimum of 3 months with any large deposits sourced and explained
Gifts are allowed from immediate family member
Gift letter, proof of funds (S & S in donor’s account for minimum 3 months) and transfer( certified check and deposit into borrowers account) are required
Down Payment assistance programs are allowed (see approved list)

FHA Guideline Summary- Credit

No minimum credit score(620 at Most Banks)
Tri-merge credit bureau is required
Limited or no credit borrowers are considered
Use alternative – 3 tradelines for 12 months
Explanations (from the borrower) are required on; All lates in last 2 years; All major lates beyond last 2 years
Secured borrowing such as 401k is not inluded in DTI
Collections and judgements may not have to be paid if they are>12 months old, unless they effect title or are court ordered. Tax liens may be left open if they are subordinated and included in DTI
Last 12 months mortgage history must be shown on credit report, documented via institutional VOM or 12 months cancelled checks
Last 12 monts rental history must be documented via 12 months cancelled checks
3 years seasoning required on foreclosure/NOD deed in lieu (extenuating circumstances considered as exception)
Community property states require that DTI includes debts of any non-borrowing spouse.

FHA Guideline Summary- Past BK

Chapter 7: 2 years discharged; Exception for 1 year with extenuating circumstances beyond customer control (illness,loss of job,etc. and proof ; No derog since BK
Chapter 13: 1 year since filing; Discharged already or through closing (considered cash out if closing) ; Perfect pay on BK and no other derog since
CCCS: 1 year since filing; On time CCCS payments

FHA Guideline Summary- Other

Borrower may not have defaulted on any prior government loans (exceptions can be considered if the borrower has now rectified the debt with the government).
Borrower may be delinquent on current non-government ARM loan if reason for delinquency is ARM re-set
Debt ratio guidelines are 42/47 (exceptions can be made with AU approval or comp factors).
6% seller concessions on purchase loans
Non-occupant Co-Borrower is acceptable(max LTV 85% on cash out refi)
Non-permanent resident aliens are acceptable
Unlimited cash out refinance

FHA Upfront and Monthly MIP

Upfront MIP-Borrowers are required to pay an upfront, one time fee of 1.75% of the base loan amount
Monthly MIP-is .55%x loan amount divided by 12 (borrower will pay every month) on loans >15 yrs. 15 yrs. and less is .25%x loan amount divided by 12
For mortgages with terms 15 years and less and with Loan to value ratios 90 percent and greater, annual premiums will be canceled when the Loan to Value ratio reaches 78 percent regardless of the amount of time the mortgagor has paid the premiums
For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78 percent , provided the mortgagor has paid the annual premium for at least 5 years

Mortgages with terms 15 years and less with Loan to Value ratio of 89.99% and less will not be charged annual mortgage insurance premiums

Florida FHA Mortgage Spcialist
Thomas Martin
http://www.fhamortgageprograms.com/florida/
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
http://www.fhamortgageprograms.com/faq/fha.shtml

Article Source:http://www.articlesbase.com/mortgage-articles/fha-mortgage-guidlines-for-florida-buyers-97w-530-fico-1014412.html

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