For the almost a decade, you have been living in an apartment. At first, when you moved in, your apartment was a functional yet personalized space. The amenities were top of the line: a clean and well-maintained swimming pool and hot tub, a gym that was accessible whenever you wished, and the grounds were immaculate, creating a nice relaxing view when you first woke up, getting ready for bed, or were outside. However, as the economy changed, the property was constantly switching hands.
The latest landlords have started to let the property go, the pool is a mosquito magnet, the lawn is minimally maintained, but the rest of the landscaping has gone by the wayside, and because of all this, the appeal this apartment complex has deteriorated and has become a dangerous place to live. You’ve gotten your car vandalized and even worse, broken into.
When you bring these crimes up to the landlord, instead of thanking you for notifying them of the destructive behavior and asking police to patrol the area, they make you feel like it was your fault for using their facilities. Every year, just as you have done in the past, it becomes a ritual to clean out the old and bring in the new. However, this time, you are doing your spring cleanup for another reason: cleaning out unused items so you don’t have to take them with you. Not knowing what to do financially, you turn to Kloze to help.
What is a Fort Lauderdale FHA Mortgage?
The FHA (also known as Federal Housing Administration) will make your dream of owning a home come true, especially if you are on a shoestring budget. While making every penny count when it comes to your household items such as groceries, gasoline, and medications (if necessary), a lot of people overlook bargain shopping for their mortgages.
The FHA is a governmental agency that is part of the U.S. Department of Housing and Urban Development (otherwise known as HUD). The FHA was created in the 1930s to help stimulate the economy during the Great Depression through real estate sales. In 2007, the real estate market experienced a crash due to banks misinforming their consumers. Because of this, it made getting a mortgage almost impossible to the average consumer. However, if they had looked into an FHA mortgage, they would have gotten the mortgage with ease: The FHA specializes in low to middle economic mortgages, qualifying individuals who normally wouldn’t qualify for a loan. Luckily, the FHA was able to help and accomplish the same goal that they did during the Great Depression.
Kloze is an approved FHA mortgage lender and will help enroll you into this beneficial program.
Streamlined Refinancing: Understanding FHA Loan Requirements in Fort Lauderdale
Just like your computer, you want to make sure your FHA mortgage is up to date with the most current information. However, instead of clicking a button to download the latest software patch, a consultation with your FHA lending institution is recommended. The good news is that the FHA mortgage is actually easier to refinance because of their streamlining process.
How does a FHA mortgage make refinancing easier than the standard mortgage? There are a lot less hoops to jump through for one. A lot of standard mortgages sometimes require that an appraisal be done at the time of the refinance. This oftentimes will benefit both the lender and the homeowner because it will give the lender an idea of how much the property’s value has increased. The homeowner gets an idea of what price to set their property at if they should choose to sell their home. However, if the property has decreased in value, the refinance may not be approved. One of the obstacles that homeowners often encounter with an appraisal is that not only do appraisers have tight schedules, but it can take a while to get the appraisal into the systems. And because of the delay, the interest rate offer may expire and a new rate (which may not be as favorable) would be proposed.
When you originally signed your mortgage paperwork, you had to pay a closing fee. Every time you refinance, closing costs are part of the out of pocket costs. That isn’t necessarily the case with an FHA streamlined refinance. What can happen is that your FHA lender can increase your percentage of your loan slightly to cover the closing costs. Even though this may seem a little counterproductive, because you will be getting a lower interest rate on your overall, you will still be getting a slightly greater interest rate, which will still save you money.
Criteria for a Streamlined Refinanced FHA Home Loan in Fort Lauderdale, FL
After reading all these benefits of not only obtaining an FHA home loan as well as the streamlining process that is associated with FHA home loan refinancing, you’re probably wondering what do you need to do to qualify.
Qualifying for a FHA streamlined refinanced FHA home loan is quite simple. In order to qualify you need to:
1) have a FHA insured home loan;
2) be current on your mortgage payments; and
3) lower your primary loan and monthly payment (this one was a little obvious).
There is also one caveat to obtaining a FHA streamlined refinanced FHA loan, you aren’t allowed to use the funds in the original FHA insured home loan to pay to enter the streamline process.
For more information on FHA home loans and the streamlining process, please visit our website.