FHA loans is a type of mortgage that is insured by the Federal Housing Administration. People who borrow FHA loans pay for the mortgage insurance which protects the lender from any losses if the borrower defaults on the loan. Being able to gain access to these loans has helped many people to turn their dreams into a reality.
Here at Kloze, we offer FHA Loans in Fort Lauderdale because everything we do is geared towards supporting current and potential homeowners in helping them to achieve financial stability. We have a talented team of mortgage specialists and customer service representatives on hand who are prepared to guide our clients through the process whether they are seasoned veterans in the housing market or first-time home buyers. We are happy to help you through the mortgage lending process, from the application to the servicing of your loan.
How is Your FHA Loan Mortgage Rate Determined?
We understand the finer details of an FHA home loan in Fort Lauderdale, FL can be difficult to comprehend at first glance. FHA loans work differently from other loans since they’re insured by the federal government. The federal insurance means lenders can offer low and moderate income people who may not have qualified otherwise for a mortgage loan. Instead of the risk being on the borrower, should they default on the payment, the government is the one who repays the lender.
One of the difficulties of gaining access to an FHA loan is financing which may help with other aspects of the mortgage. The majority of home purchases require a 20% down payment to even qualify for a mortgage loan. Even properties that are considered inexpensive can easily run into thousands or tens of thousands of dollars the potential home owner has to pay out of pocket.
This exposes many Americans into sinking their entire life savings into their home which puts them at considerable financial risk. The advantage of acquiring an FHA home loan in Fort Lauderdale, FL is only 3.5% down payment is required as an upfront cost on the part of the borrower.
The upfront costs for acquiring a home is further mitigated by reducing the closing costs and FHA home loans do this in two ways. The first being they allow the lender, seller, or builder to pay for the closing costs on their own. The arrangement can benefit both parties by facilitating the sale of the home. Another option is allowing the borrower to fold the closing costs on the home into their mortgage amount. Folding the costs into the mortgage spreads the burden of costs over a longer length of time, making it easier for the borrower to pay off. These alternative means can save potential home owners a few hundred to a couple thousands of dollars they don’t have to pay upfront.
How Do You Qualify for an FHA Loan?
We understand our clients are interested in qualifying for an FHA home loan in Fort Lauderdale since it’s one of the few options low to moderate income Americans have access too so they can purchase their own home. Applicants should be aware they will have to demonstrate a steady employment history with the same employer for at least the last two years. They must also meet the minimum credit score requirements, with 580 needed to be eligible for the maximum financing. The borrower’s total monthly mortgage payment cannot exceed 31% of their gross income and the home they’re purchasing has to be their primary residence; they cannot flip the house into a rental property.
Our dedicated and knowledgeable staff are here to walk you through the process of applying for a FHA home loan in Fort Lauderdale. Our mortgage team is on hand to walk you through the range of products we have to offer, not just FHA loans. The FHA loans we have available are only one of the many products we have in our portfolio which includes adjustable-rate conventional and fixed rate loans. We also have reverse mortgages, Veterans Affairs loans, and other specialty products available to fit anyone’s financial situation.
The wide scope of our lending services we have available gives borrowers the confidence in their lender to have a strong grasp on the lending marketplace by offering multiple mortgage solutions and highly competitive pricing.
Here at Kloze, we don’t believe in convoluted messages or gimmicks. Our belief is to provide our clients with information they need on clear terms so they can make the ideal financial decision to achieve their dream of owning their own home.