FHA World Florida - El Portal
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 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
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 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.
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?
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.
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.
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:
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.
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 600 for 3.50% down payment. Credit scores below 600 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
Easier Credit Qualifying Guidelines
El Portal Refinance
El Portal Lower Interest Rates
El Portal Cash Out Refinance
El Portal Home Buyer Mortgage
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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
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
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
FHA guidelines requires three year past from the date of sale of the property
What documentation will I need?