When you want to purchase a new home, one of the very first things you need to consider is financing your home. Most people do not have $200,000 or more saved up to pay cash for a home. You may qualify for different types of home loans. One of the most popular loans is the Federal Housing Administration (FHA) Loan. These loans offer great benefits and are often easier to get than traditional loans. If you want to apply for FHA Loans in Fort Lauderdale, there are a few things to know:

Qualifying for FHA Home Loans in Fort Lauderdale

An FHA loan is a great option for many new homeowners because it requires a smaller down payment than traditional loans and qualifying for an FHA loan is generally much easier than applying for a regular home loan. FHA loan requirements Fort Lauderdale are less strict than traditional loans.  Lenders tend to appreciate FHA loans as well because the FHA takes out insurance on the loans, which pays back the lender if the borrower defaults on their loan.

FHA Loans Fort LauderdaleTo qualify for FHA home loans in Fort Lauderdale, you must have a credit score of at least 500. The higher your credit score, the better interest rates you will get. As a rule, individuals with a credit score under 580 must provide a 10 percent down payment to qualify for an FHA loan. If you have a credit score above 580 you may be approved for an FHA loan with a down payment as low as 3.5 percent.

While you must provide some sort of down payment, you have some options for where the cash comes from. You can use your own savings, a cash gift from a family member or a state grant that offers down payment assistance. Learn more about what you need to do to qualify for an FHA Loan when you visit our website.

Applying for an FHA Home Loan in Fort Lauderdale, FL.

When you apply for an FHA home loan in Fort Lauderdale, FL, you must provide a significant amount of personal information including:

  • Current address (for the past two years)
  • Yours and co-applicants social security numbers
  • Employment History (including names and addresses) for the past two years
  • Proof of income (gross pay)
  • Checking and Savings account information
  • Information about any loans you currently have open
  • Detailed information about any real estate you already own
  • Value of all personal property
  • Current check stubs and W2
  • Personal Tax returns or the past two years, income statement and/or a business balance sheet if you are self-employed.
  • You are required to pay for a credit report and any property appraisals as well.

Applying for a Fort Lauderdale FHA mortgage takes time. However, the benefits of receiving this type of loan can pay off in the end. You may be able to allow a builder, seller or lender to pay for closing costs, title expenses etc. as incentives to make the purchase. You may have to pay a slightly higher interest rate if the lender agrees to pay closing costs.

When you apply for an FHA loan, you must do so through an FHA-approved lender. The FHA essentially insures the loan, so you will apply for this type of loan through a traditional lender, like Kloze. Click here to learn more about how we can help you apply for an FHA loan. 

Getting the best FHA loan Rates in Fort Lauderdale, FL

FHA loans are a great option for buyers because they can offer lower downpayments. If you want to save money of the course of your loan, you need to get the best interest rate possible. The difference of 1 percentage point could save you over $100 per month and upwards of $40,000 in interest over the course of your loan. A good interest rate is key to saving money on your loan.

The best way to score great FHA loan rates in Fort Lauderdale, FL is to improve your credit score. A good credit score will reduce the amount of down payment you have to front and lower your interest rate. Ideally, you should have a credit score of at least 650 to land decent interest rates. Scores over 700 will qualify for the best interest rates.

You can qualify for better rates at Kloze by making a few changes to your spending habits:

  • Pay your bills on time. Over 30 percent of your credit score is based on making payments on time
  • Reduce your debt to income ratio by paying off other debts and/or increasing your income. This makes up another 30 percent of your score.
  • Do not close old accounts. Length of credit history makes up another 15 percent of your credit score.

Landing good FHA loan mortgage rates is possible if you put in a little work. Even if you cannot land excellent rates, you may still qualify for a loan through the FHA program when traditional loans are not an option. At Kloze, we want to help everyone get into the home of his or her dreams. Let us help you apply for an FHA loan and start on the road homeownership today.

For more information, feel free to explore our website. You can also contact our office with any questions.