Bay Harbor Islands

FHA World Florida - Bay Harbor Islands

Today’s historically low interest rates make now the perfect time to refinance or purchase a new home.

Getting an FHA loan has never been easier:

  • FHA loans offer simple credit qualifying
  • Simple processing
  • Simple terms
  • Low interest rates
  • Low down payment (3.50%)

Refinance

FHA World Florida - Refinance

FHA Refinance allows up to 96.50% loan-to-value.

Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA Policy changes require minimum FICO score to be 580 for 96.50% loan-to-value and anyone refinancing with a score lower than 580 will require 90% loan-to-value. These FICO requirements went into effect in the spring 2010. However, individual lenders will still require credit scores higher than 640.

A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Sometimes scores down to 500 are accepted if there are compensating factors that offset the credit risk

Rate and Term Refinance

Refinance Rates are the Lowest in 50 years.

This is the lowest rate in over 50 years according to Freddie Mac. FHA has more flexible underwriting guidelines compared to conventional loans.

Conventional mortgage loans allow up to 125% of the value of the property for a rate and term refinance. You do not need equity to refinance.

You need to know what your property is worth. You can get a good guesstimate by going to www.zillow.com or by contacting a local appraiser for a value estimate based on comparable sales in your area.

FHA Streamline Refinance

FHA Streamline provides a way for current FHA homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster and with less documentation than a typical loan. "No Cost" Streamlines let you refinance your mortgage with no out-of-pocket expenses.

Lower Interest Rates

FHA World Florida - Lower Interest Rates

Fixed-rate mortgages are the most common mortgage because they're stable. Typically the monthly mortgage payment remains the same for the entire term of the loan – whether it's a 15 year, 20 year or 30 year mortgage, allowing for predictability in your monthly housing costs.

What are the benefits of a fixed-rate mortgage?

  • Inflation protection.
    If interest rates increase, your mortgage and your mortgage payment won't be affected. This is especially helpful if you plan to own your home for 5 or more years.

  • Long-term planning.
    You know what your monthly mortgage expense will be for the entire term of your mortgage. This can help you plan for other expenses and long-term goals.

  • Low risk.
    You always know what your mortgage payment will be, regardless of the current interest rate. This is why fixed-rate mortgages are so popular with first-time buyers.

There are additional considerations to be aware of with fixed-rate mortgages:

  • Your mortgage interest rate won't go down, even if interest rates drop, unless you refinance your mortgage.
  • Because the interest rate may be higher than other types of loans such as adjustable-rate mortgages, you may not be able to qualify for as large a loan with a fixed-rate mortgage.
  • While your actual mortgage payment will not change, your total monthly payment can occasionally increase based on changes to your taxes and insurance. In many cases you can choose to pay these costs as part of your monthly payment through an escrow account that your lender keeps for you.

Cash Out Refinance

FHA World Florida - Cash Out Refinance

FHA Cash Out Refinance allows up to 85.00% loan-to-value.

Cash out refinance allows homeowners to refinance their existing mortgage by taking out another mortgage for more than they currently owe, therefore repaying their current mortgage and using the equity they have built up in their home to take cash out.

Conventional loans allows cash out amount up to 80% of the value of the property

FHA allows cash out amount up to 85% of the value of the property.

Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA Policy changes require minimum FICO score to be 580 for 85% loan-to-value. These FICO requirements went into effect in the spring 2010. However, most individual lenders will still require credit scores higher than 640.

A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Credit scores below 500 will result in lower loan-to-value.

Home Buyer Mortgage

FHA World Florida - Home Buyer Mortgage

Buy a Home with an FHA loan. First-time home buyers and home buyers with less than perfect credit can take advantage of easier qualifying standards from FHA. To qualify for an FHA loan you must have a minimum credit score of 580 for 3.50% down payment. Credit scores below 580 will require a 10% down payment and tougher guidelines.

Conventional loans require a minimum 3% down payment and a 620 credit score, the down payment funds must belong to the borrower. No gifts.

The following are just some of the reasons FHA loans are popular again:

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 required.
  • FHA regulated closing costs.
  • Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines

  • Minimum FICO credit score of 580.
  • FHA will allow a home purchase two years after a Bankruptcy.
  • FHA will allow a home purchase  three years after a Foreclosure. 

Bay Harbor Islands

Bay Harbor Islands Refinance

Bay Harbor Islands Lower Interest Rates

Bay Harbor Islands Cash Out Refinance

Bay Harbor Islands Home Buyer Mortgage

Bay Harbor Islands >>>>>


2019 FHA Credit Score needed to buy
a condo or refinance


FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%

FHA requires a minimum credit score of 500 to buy a home or refinance


Bankruptcy

Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date


Foreclosure

Foreclosure must have been resolved for at least 3 years

Government loan: Seasoning is determined by the date the claim was paid

Loans other than Government: Seasoning is determined by the date of sale the lender sold the property


Short Sale

FHA guidelines requires three year past from the date of sale of the property


What documentation will I need?

  • Personal tax returns for the past 2 years
  • Current pay stubs for the past month
  • Bank statements for last 2 months (all pages)
  • Clear copy of Driver’s License (front and back)
  • Clear copy of SS card (front and back)

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