In 1930, Congress and the President established the “GI Bill” which allowed the Veteran Administration (VA) to coordinate benefits for its service people.  One of these programs, known as the Home Loan Guaranty Program, was created to help returning veterans and their families assimilate back into civilian life after sacrificing so much personally for their country. 

 

Who qualifies for VA loans?  If you served in the military, naval or air service and are active duty or released from duty for reasons other than a dishonorable discharge, you may qualify.  You had to serve for 90 days active duty or 181 days consecutively in peacetime. If you served less than the minimum requirement because of discharge or service connected disability, you may also qualify. In addition, if you are the surviving un-remarried wife or husband of an eligible service member who died for his/her country, you may too be eligible.  This program was designed to reward you and your loved ones for your service.

 

“The VA program, in general, is an exceptional program.  Many veterans don’t know it can even benefit them if he/she is overseas.  We’ve been helping active duty service people by putting their families in homes, and giving them peace of mind that their loved ones and their immediate needs are being taken care of while they’re away”, reflects Jamie Utton, Director of Product Development at Mortgage Investors Group.

 

These loans are available only for a primary home you intend to occupy.  You can’t go and buy a beach house for weekend use with it.  However, you can also use your eligibility to refinance your primary residence and pay off debt (except for Texans, for some reason, they don’t allow it in that state).  Or, if you had a VA loan prior, and the interest rates have dropped dramatically, you can do a “streamline” refinance – no worries about paying for a new appraisal or the hassle of verifying your income.  You’re all set to go.

 

So what makes the VA loan stand out above other types of financing? It allows for 100% financing for loans up to $417,000 with no reserves (checking and savings money to burn) required. The loan amounts allowed go up to $1.5 million, but you’d have to put some type of down payment into the transaction if you want to borrow that much money, plus show you have enough money to pay your mortgage for two months sitting in the bank if you need it.   And if you’re buying a home, the program allows for the seller to pay up to 4% of the closing costs, based upon the purchase price.  Basically, you can get into a home for very little or no money at a more than affordable market rate.

 

And the best part?  No extra money is added to your payment for mortgage insurance if you put a less than 20% down payment on the home.  That’s a pretty unique feature that makes this loan more affordable than others.  Most of the time, the veteran  will be required to pay a VA Funding Fee, but it is financed into the loan amount.  So, the funding fee is not an out of pocket expense for closing.  A veteran can be exempt from paying the funding fee for different reasons, including service connected disability, or if he/she is a surviving spouse of a veteran who died in service or from a service related disability.  And regarding credit scores, the VA loan program has more flexibility than some other programs offer. 

 

If you think you may qualify for this loan, let me first of all say, “Thank you.”  I really appreciate the sacrifices you’ve made for this country.  And if you’re looking to purchase or refinance your home, call a lender today who specializes in VA loans, and take advantage of this great benefit.




By: Kristin Abouelata – Home Loans

Many reasons why Florida homebuyers Choose FHA mortgage loans.

Florida 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 purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or Visit http://www.fhamortgagefhaloan.com/

Without a doubt, there’s a mortgage meltdown across Florida. Florida mortgage Lenders are going out of business, mortgage standards are getting tighter and mortgage applicants trying to buy to refinance a Florida home are finding that getting a loan is far more difficult today than it was a months ago.

The odd part of the situation is that mortgage rates remain low by historic standards. And there’s plenty of mortgage money is available for qualified applicants — it’s just not available in some of the loan formats which have become so popular during the past few years.

One of the best choices available today  for Florida homebuyers is nothing other than the FHA mortgage program. FHA home loans have been round since the 1930s, the FHA mortgage has traditionally been a great home loan choice for Florida first-time borrowers and for those with low and moderate incomes. Over time the FHA mortgage program has been expanded to the point where it should be considered by all Florida home the majority of all borrowers.

What makes the FHA mortgage so good over other home loan options? The FHA Home loan has helped over 30 million borrowers purchase a home? Here are 10 key reasons to consider FHA loans if you’re in the market for real estate financing.

1. Unlike the toxic supreme home loan mortgage loans that have become so popular in the past few years — the Florida home loans which have led to so many foreclosures — the FHA mortgage loan is straightforward. There are no tricks, hidden fees, unexpected costs or dangerous payment increases. For the Florida homebuyer the FHA  loan program for borrowers who want both financing and financial sanity.

2. FHA mortgage loans can often be used instead of subprime or Hard money financing. Why? FHA mortgage rates are typically way lower, And there are no prepayment fees and you can get fixed-rate FHA mortgage loans and lock-in today’s interest levels.

 

3. FHA loans allow you to buy a Florida home with little down. The FHA mortgage program requires just 3.5% down to purchase a Florida home. Under certain conditions FHA home loan down payment money can be supplied in the form of the gift. Be aware that besides cash for a down payment and the seller can pay up to 6% of your closing cost.

 

4. Many conventional mortgage loans require Florida mortgage applicants to prove that they have cash reserves on hand at the time of closing. This means you may need thousands of dollars in savings in addition to the money required for down payment and closing costs and money saved for future mortgage payments. The FHA has no reserve requirement.

 

5. Under the FHA mortgage program Florida sellers are allowed to credit up to 6% of the sale price in the form of “seller contributions” to cover the Florida homebuyers closing cost and prepaid taxes and insurance. In a slow market — a market where Florida home sellers make concessions to move Florida homes — the seller contribution credit provided by owners can be used to pay buyer closing costs, maybe ALL buyer closing costs except for the down payment. Be aware that any seller paid closing cost must be in writing and part of the purchase agreement reviewed by lenders.

 

6. If you have been in a Bankrupt or in a past foreclosure, then you need to take a look at the FHA home loan. Under FHA rules, it’s possible to qualify for an FAH home loan in as little as a year — one year for a chapter 13 bankruptcy, two years for a chapter 7 bankruptcy and 3 years for a foreclosure.

 

7. The FHA mortgage may allow you to borrow much more than competing loans programs because it has unusually-liberal qualification standards. With the FHA mortgage you can spend as must as 50% of your gross monthly income towards all monthly obligations on your credit report..

 

8. You don’t have to be a US citizen to get an FHA mortgage loan. The FHA guidelines  says that the FHA home loan program is open to permanent resident aliens who can provide evidence of lawful permanent residency issued by the Bureau of Citizenship and Immigration Services (BCIS), a part of the Department of Homeland Security. Non-permanent resident aliens must show that they are eligible to work in the U.S. by producing an Employment Authorization Document (EAD) issued by BCIS.

 

9. You qualify for an FHA mortgage on the basis of your credit history, capacity to repay, cash to close and collateral. If you don’t have traditional credit, you can show such items as utility payment records, rental payments, automobile insurance payments and other direct reports from credit providers.

10. FHA mortgage loans are offered nationwide by thousands and thousands of FHA mortgage  lenders. Because FHA home loan are available from so many sources.

 

 




By: FHA home loan Lender

FHA Loan Florida

Why choose an FHA home loan for your Next Florida home?

There are lots of good reasons Florida homebuyers choose an FHA mortgage loan over conventional home loans, especially if one or more of the following apply to you

You’re a first-time Florida homebuyer. You have less than perfect credit. You don’t have a lot of money to put down on your next Florida home. You want to keep your Florida mortgage payments as low as possible. You’re worried about your Florida mortgage payments going up. You’re worried about qualifying for a Florida home loan.

 If any of these things describe you, then an FHA loan is right for you. Why? Because FHA-insured mortgages protect private Florida FHA approved lenders against loss. Because Florida mortgage lenders are insured against loss they off you’re a better deal.  

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

 

Other Benefits include:

 Low costs: FHA loans have low interest rates because they are insured by the  federal government

 Lower down payment:  FHA Loans have a low 3.5% down payment requirement, and the money can come from a family member, employer or grant.

 Easier approval: Because FHA insures your lFlorida mortgage lender against loss, private Florida FHA approved mortgage lenders are willing to give you mortgage terms that make it easier for you to qualify.

 No MIN FICO SCORE : You don’t have to have perfect credit to get an FHA insured mortgage. In fact, FHA loans have no minimum credit score requirements, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA-insured loan than a conventional loan. Bankruptcy Chapter 13 requires 12 months from filing date, and chapter 7 bankruptcy requires you to wait 24 months from discharged unless you can document death of a wage earner or extreme medial condition.

 More protection to keep your home: The FHA loan has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure. FHA insures loans for Florida lenders against default. FHA   does not lend money or set interest rates. For the best interest rate and terms on a mortgage visit www.FHAMortgageprograms.com , for a free quote on a Florida FHA loan.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation.

 What kinds of insured loans does FHA offer?

Fixed-rate loans – Most FHA-insured loans are fixed-rate mortgages (loans). The advantage of a fixed-rate Florida mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.

 Adjustable rate loans – Most Florida first-time homebuyers are a little stretched financially. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum amount that the interest rate on your loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment.

 Florida Purchase/Florida rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get one loan which combines the mortgage and the cost of repairs. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but have only one mortgage payment, and you can complete the repairs after buying the home.

 

How do Floirda FHA-insured loans compare to subprime loans?

Subprime loans are loans designed for homebuyers who don’t have a strong credit history or can’t qualify for a regular or prime loan. Lenders charge a high interest rate on subprime loans because the risk that a homebuyer may not make their payments is high. Because FHA insures the lender against this risk, the interest rates on FHA-insured loans are generally among the lowest in the market. Most subprime loans carry interest rates at least 3 percentage points higher than an FHA-insured loan. On a $100,000 mortgage, the monthly payment for a subprime loan would be over $200 a month higher than an FHA-insured loan.

 The majority of subprime loans are also ARMs, where the interest rate can change a lot and greatly increase your monthly payments. Most FHA-insured loans are fixed-rate loans where the mortgage payment always stays the same. If you have an FHA-insured ARM loan, the rate can’t go up by more than one or two points in a year. The fees that lenders charge their borrowers for processing a subprime loan are also generally higher than on an FHA-insured loan.

Most subprime loans carry a heavy prepayment penalty that you must pay if you want to refinance your loan to a lower interest rate. These penalties can cost you hundreds or even thousands of dollars. There is never a prepayment penalty on an FHA-insured loan. You can refinance at any time and not worry about paying any penalties.

Unfortunately, because they don’t know these facts, many homebuyers who could qualify to buy a home with a fixed-rate FHA-insured loan only apply for subprime loans. Check out an FHA-insured loan before settling for a subprime loan!

 How do FHA-insured loans compare to conventional loans?

Conventional loans usually require a larger downpayment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much downpayment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.

Do you have to buy mortgage insurance on an FHA-insured loan?

Yes – as you will with most loans. There is an up front mortgage insurance premium equal to 1.5% of the loan amount that is paid at settlement. In most cases, this mortgage insurance premium is included in your loan amount, so you are really paying it over the life of the loan. In addition, on loans with a term of greater than 15 years and a loan-to-value ratio of 90% or greater (meaning you are borrowing more than 90% of the value of the home), you will pay an annual mortgage insurance premium of 0.5% of the loan amount in monthly installments.

 Example:

Up Front Mortgage Insurance Premium

Mortgage amount: $100,000 X 1.75% = $1,500 @ 6.5% for 30 years = $ 9.48 per month

Annual Mortgage Insurance Premium

Mortgage amount: $100,000 X 0.55% = $ 500/12 months = $45.83 per month

 Total Mortgage Insurance Premium

Most loans require mortgage insurance when your down payment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than an FHA-insured loan’s insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA to subprime and conventional types of loans over the life of your loan . Then compare how much each costs monthly. With the protection and value you get from FHA – it’s a very good deal.

 




By: FHA home loan Lender