FHA Loans Fort Lauderdale – Getting you Into your New Home No Matter What
There are many people who want to buy a home, but in some cases, it can be a bit difficult. The preferred method, of course, would be to simply buy the house outright as you would with anything else, but let’s face it, homes are a bit more expensive than that. Unless you have several hundred thousand dollars laying around or in a bank account, then you will not be buying a house outright. If you want to buy a house, then there is a good chance that you will need a housing loan. It is no secret that the economy is in a bad way at the moment, and with that being the case, you might find it more than a bit difficult to get the funding you need for a home. The FHA was designed for those who need a home for themselves or for their family, particularly if they are unable to obtain one through normal means. Sometimes an individual may not have the credit score, or maybe there are other requirements that you simply do not meet. What you must understand however, is that an FHA loan, otherwise known as Federal Housing Assistance, is much different from the typical loan type. There is, however, a difference between a typical mortgage loan and FHA loan rates in Fort Lauderdale, FL which are open to nearly everyone. These loans are overseen by the Federal Government, employing insurance that permits lenders to offer financing to any American citizen that needs it or qualifies.
The biggest reason for which people tend not to qualify for a loan is the risk to the lender. If, for example, you fail to pay your loan and end up in default, it will be the lender that takes the fall. Despite that, the FHA, otherwise known as the Federal Housing Administration will take the blow, thus removing the risk from the lender in the event of default. This is a great way to clear the biggest obstacle toward getting yourself into a new home, but it also several other aspects of your loan. For example, the down payment on some larger loans will sit at about twenty percent, but on larger properties this can mean several thousand dollars – money that you simply do not have. That being the case, you will be glad to know that the FHA loans can actually be as low as 3.5 percent. With these upfront costs finally reduced, and the dream of home ownership within your grasp.
Better in the Closing
You can easily reduce FHA home loans Fort Lauderdale in the closing costs. In this capacity you can have the seller, builder, or lender pay the closing costs which serves to take some of the pressure off of you. This is a great arrangement that can benefit both parties in the end. If that is not acceptable, the FHA loan will actually permit the borrower to fold the closing costs into the mortgage amount, which means spreading the entire closing cost over the life of the loan and paying for it monthly. This is yet another great feature that you would not see in traditional loans, and a great way to find yourself in a ne home
A History of Employment
In order to qualify for FHA loans you need to be able to display that you have held steady employment for the past two years. In addition to that you will need to meet a minimum credit score requirement, 580, in order to qualify for the maximum amount of financing. This is not to say that you will be disqualified for a lower credit score, but rather that you will experience far lesser financing.
As with anything else there are FHA loan requirements Fort Lauderdale to take into account, especially when it comes to your income. Your monthly payment cannot exceed 31% of your gross income, and this might become a barrier to your meeting the requirements for maximum financing.
Finally, before you choose to pursue an FHA loan, keep in mind that the house you ask for financing with will be the house you plan to live in. This means that you cannot be planning to flip the property, nor can you simply use it for storage. There is a strong chance that someone in authority will check on the property to ensure that someone IS in fact living there. Finally, as tempting as it may be, you cannot flip the property into a rental to make extra money, even if it would help to pay off the mortgage.
Those who are simply looking to get into a house will find that the FHA loan is well worth investigating. There are qualifications to meet, of course, and you will need to fill out some paperwork, but as a lending institution we are interested in helping you to get from Point A to Point B, ensuring that in the end, you have the home that you have been searching for. It might sound far fetched, but on day, you will find yourself in the house you’ve always wanted making the home that you deserve. Start planning now and remember, your new home is only a loan approval away.