Ever since 1934 the FHA (Federal Housing Administration) has overseen the loan program which has opened figurative and literal doors to millions of Americans all over the US. The residents of Forth Lauderdale have opportunities available to them they would not usually have through other traditional lending outlets.
FHA Home Loans in Fort Lauderdale, FL Cares About You
Our FHA loans are geared towards supporting current and potential homeowners who are seeking financial stability in their lives. We have a talented team of customer oriented service representatives and mortgage specialists who are prepared to guide you every step of the way. It doesn’t matter if your a seasoned veteran who is used to the up and downs of the house market or a first time home buyer. We will help and guide you through the entire mortgage process. This includes the servicing of an FHA loan and filling out the application.
When you go beyond the FHA loans, Kloze is able to offer mortgage seekers so much more. We don’t believe in convoluted messages or cheap gimmicks to convince you we’re the better mortgage company. We firmly believe in making sure our clients have as much information as possible on clear terms so they understand what they’re signing up for. When you are presented with the information you need to make an informed decision. You will understand why Kloze holds itself to a higher standard than other lending services in the business.
Our dedication is supported by the amazing team of knowledgeable and dedicated staff we have on hand who make up our mortgage team. We also have a wide range of products geared to serve specific needs of veteran and first time homeowners. Just to name a few products we have tucked away in our portfolio is reverse mortgage loans, fixed rate loans, Veterans affairs loans, adjustable rate loans, and even specialty products. Our wide scope of lending guarantees you’ll have the full understanding to deal with the lending marketplace. For our clients this translates into multiple mortgage solutions and highly competitive pricing.
What is an FHA Loan?
The first question on your mind may be what is an FHA loan to begin with? How is it different from a typical mortgage loan? FHA loans are different in the fact they are private loans which are insured by the federal government. The federal insurance gives lenders the options to offer financing to low and moderate income Americans who otherwise may not be able to qualify for a mortgage loan. This is because with an FHA loan it takes the risk away from the lender. In the event payment is defaulted on it falls to the government to repay the lender instead.
FHA loans can help to clear the big hurdle of having access to financing. It can also help you towards accessing different aspects of your mortgage. The majority of home purchases require a 20% down payment. Even on an inexpensive property the down payment can go into the thousand or even tens of thousands of dollars. Money you have to pay out of pocket. For many Americans making such a payment is impossible. This usually exposes the borrower to a large risk too by sinking their life savings into a home. FHA loans only require a 3.5 percent down payment on a home. This reduces the risk of the upfront costs on the borrower.
Upfront costs can be further mitigated when it comes to the reduction of closing costs. FHA loans can help in reducing closing costs in one of two ways. First, they allow the lender, builder, or seller to pay for the closing costs themselves. This arrangement can benefit both parties by helping to facilitate the sale of the home. The second way is the FHA loan allows the borrower to fold the closing costs into the mortgage amount. This spreads the cost of the burden over the length of the mortgage. Both of these options are an excellent way to save several hundred or even a few thousand dollars you would otherwise have to pay out of pocket. It’s a good way to keep your home and the cost of the FHA loan under control.
In order to apply for an FHA loan applicants do have to demonstrate they have a steady employment history. This means staying with the same employer for at least three years. Do also have to meet the minimum credit score requirements. A credit score of 580 at least is needed in order to be eligible for maximum financing. The entire total of a monthly mortgage payment cannot exceed 31 percent of the gross income the applicant makes. The home being purchased must able be a primary residence. This means the home cannot be flipped so it becomes a rental property.
Learning all the small details when it comes to FHA loans can seem complicated and confusing at first. It can be overwhelming, but the potential benefits of an FHA loan are huge. FHA loans are one one of the primary pathways in allowing people to finally being able to achieve home ownership. Kloze is always available to speak with you and to answer any questions you may have. We will help to understand how an FHA loan works and the right decision to make for you. It’s what we live for.
Benefits of FHA Home Loans at NHL Lending!
There are many advantages that come hand in hand with the FHA loan requirements at NHL Lending. First, the FHA doesn’t require an SSN. The truth is that not every home buyer will have a valid social security number and, according to the FHA, that’s okay. FHA guidelines permit loans to employees of the World Bank and foreign embassies, for example. In addition to this incredible benefit, the FHA will also insure loans for non-permanent resident aliens if they qualify for all of the other FHA loan requirements in Fort Lauderdale.
Second, there are many FHA approved lenders including Kloze along with the following:
- Private mortgage lender
- Savings-and-loans institutions
- Credit unions
With all of these options, it allows lenders to offer competitive rates and fees.
One of the best FHA loan requirements in Fort Lauderdale is that less than perfect credit is okay. For example, to qualify for a down payment of only 3.5 percent, you will need a credit score of 580 or higher. However, if your credit score is between 500 and 579 must make down payments of at least 10 percent to get approved. Usually, borrowers that have credit scores under 500 are ineligible for FHA loans, but there may be certain allowances if you meet all of the other requirements.
Another advantage of an FHA loan requirements in Fort Lauderdale is that you usually only need a down payment of 3.5 percent. This is a great benefit of this type of loan that occurred in 2014. Before this, the required down payment amount was 10 percent. In addition to that, most FHA borrowers can use their savings to make the down payment. Other down payment options can include:
- Monetary gift from a family member
- A grant from a state assistance program
- Help from a local government down-payment assistance program
These options can help you get the down payment money that you need for your FHA loan from NHL Lending!
What should you know about FHA home loans in Fort Lauderdale?
When it comes to FHA home loans in Fort Lauderdale, there are many things that you will want to keep in mind. One thing that you will want to know is that closing costs may be covered. This means that that the FHA allows home sellers, builders, and lenders to pay some of the borrower’s closing costs such as:
- An appraisal
- Credit report
- Title expenses
You will want to be careful with this since you may pay a higher interest rate if a lender agrees to pay your closing costs.
How can you get a Fort Lauderdale FHA mortgage?
First, to get a Fort Lauderdale FHA mortgage, you must find a lender that is FHA approved since the FHA is an insurer and not a creditor. Therefore, you will need to get your loan through an FHA-approved lender. For this reason, you may want to shop around since not all FHA-approved lenders offer the same interest rate and costs even on the same Fort Lauderdale FHA mortgage. It is important to shop around since the following will vary among lenders:
- Underwriting standards
There are a variety of things that you will want to keep in mind when it comes to receiving a Fort Lauderdale FHA mortgage. Second, when it comes to these loans, there are two mortgage insurance premiums are required on all FHA loans. The first is an upfront premium which is 1.75 percent of the loan amount. This upfront premium is paid when the borrower gets the loan. However, if you cannot afford this amount, it can be financed as part of the loan amount. The second insurance required for a Fort Lauderdale FHA mortgage is known as an annual premium. This insurance will be paid monthly and will vary on the following:
- Length of the loan
- Amount borrowed
- Initial loan-to-value ratio (LTV)
To learn more about an FHA home loan and the current FHA loan rates, contact NHL Lending today!