Zinga Coating

 

 FHA CREDIT Qualifying

 ANALYZING THE FHA Mortgage applicants  Credit History

 Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, Visit

www.FHAmortgageFHAloan.com

Past credit performance serves as the most useful guide in determining a borrower’s attitude toward credit obligations and predicting a borrower’s future actions. A borrower who has made

payments on previous and current obligations in a timely manner represents

reduced risk. Conversely, if the credit history, despite adequate income to support obligations, reflects continuous slow payments, judgments, and delinquent accounts, strong compensating factors will be necessary to approve the loan.

 

When analyzing a borrower’s credit history, examine the overall pattern of credit behavior, rather than isolated occurrences of unsatisfactory or slow payments. A period of financial difficulty in the past does not necessarily make the risk unacceptable if the borrower has maintained a good payment record for a considerable time period since the difficulty. When delinquent accounts are

revealed, the lender must document their analysis as to whether the late payments were based on a disregard for financial obligations, an inability to manage debt, or factors beyond the control of the borrower, including delayed mail delivery or disputes with creditors.

 

While minor derogatory information occurring two or more years in the past does not require explanation, major indications of derogatory credit–including

judgments, collections, and any other recent credit problems–require sufficient

written explanation from the borrower. The borrower’s explanation must make

sense and be consistent with other credit information in the file. Neither the lack of credit history nor the borrower’s decision not to use credit may

be used as a basis for rejecting the loan application. We also recognize that some prospective borrowers may not have an established credit history. For those borrowers, and for those who do not use traditional credit, the lender must develop a credit history from utility payment records, rental payments, automobile insurance payments, or other means of direct access from the credit provider. The lender must document that the providers of non-traditional credit do, in fact, exist and verify the credit information. Documents confirming the existence of a nontraditional credit provider may include a public record from the state, county, or city records, or other means providing a similar level of objective confirmation. To verify the credit information, lenders must use a published address or telephone number for that creditor. As an alternative, the lender may elect to use a non-traditional mortgage credit report developed by a credit-reporting agency, provided that the credit reporting agency has verified the existence of the credit providers and the lender verifies that the non-traditional credit was extended to the applicant. The lender must verify the credit using a published address or telephone number to make that

verification.

 

The basic hierarchy of credit evaluation is the manner of payments made on

previous housing expenses, including utilities, followed by the payment history of installment debts, and then revolving accounts. Generally, an individual with no late housing or installment debt payments should be considered as having an acceptable credit history, unless there is major derogatory credit on his or her revolving accounts.

 

When reviewing the borrower’s credit and credit report, the lender must pay

particular attention to the following:

 

A. Previous Rental or Mortgage Payment History. The payment history

of the borrower’s housing obligations holds significant importance in

evaluating credit. The lender must determine the borrower’s payment

history of housing obligations through either the credit report, verification

of rent directly from the landlord (with no identity-of-interest with the

borrower) or verification of mortgage directly from the mortgage servicer,

or through canceled checks covering the most recent 12-month period.

 

B. Recent and/or Undisclosed Debts. The lender must ascertain the

purpose of any recent debts, as the indebtedness may have been incurred

to obtain part of the required cash investment on the property being

purchased. Similarly, the borrower must provide a satisfactory

explanation for any significant debt that is shown on the credit report but

not listed on the loan application. The borrower must explain in writing

all inquiries shown on the credit report in the last 90 days.

 

C. Collections and Judgments. Court-ordered judgments must be paid off

before the mortgage loan is eligible for FHA insurance endorsement. (An

exception may be made if the borrower has agreed with the creditor to

make regular and timely payments on the judgment and documentation is

provided that the payments have been made in accordance with the

agreement.) FHA does not require that collection accounts be paid off as a

condition of mortgage approval. Collections and judgments indicate a

borrower’s regard for credit obligations and must be considered in the

analysis of creditworthiness with the lender documenting its reasons for

approving a mortgage where the borrower has collection accounts or

judgments. The borrower must explain in writing all collections and

judgments.

 

D. Previous Mortgage Foreclosure. A borrower whose previous principal

residence or other real property was foreclosed or has given a deed-in-lieu

of foreclosure within the previous three years is generally not eligible for a

new FHA-insured mortgage. However, if the foreclosure was the result of

documented extenuating circumstances that were beyond the control of the

borrower and the borrower has re-established good credit since the

foreclosure, the lender may grant an exception to the three-year

requirement. Extenuating circumstances include serious illness or death of

a wage earner, but do not include the inability to sell the house because of

a job transfer or relocation to another area.

 

E. Bankruptcy. A Chapter 7 bankruptcy (liquidation) does not disqualify a

borrower from obtaining an FHA-insured mortgage if at least two years

have elapsed since the date of the discharge of the bankruptcy.

Additionally, the borrower must have re-established good credit or chosen

not to incur new credit obligations. The borrower also must have

demonstrated a documented ability to responsibly manage his or her

financial affairs. An elapsed period of less than two years, but not less

than 12 months, may be acceptable if the borrower can show that the

bankruptcy was caused by extenuating circumstances beyond his or her

control and has since exhibited a documented ability to manage his or her

financial affairs in a responsible manner. Additionally, the lender must

document that the borrower’s current situation indicates that the events

that led to the bankruptcy are not likely to recur.

 

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining

an FHA-insured mortgage provided the lender documents that one year of

the payout period under the bankruptcy has elapsed and the borrower’s

payment performance has been satisfactory (i.e., all required payments

made on time). In addition, the borrower must receive permission from

the court to enter into the mortgage transaction.

 

F. Consumer Credit Counseling Payment Plans. Participation in a

consumer credit counseling payment program does not disqualify a

borrower from obtaining an FHA-insured mortgage provided the lender

documents that one year of the pay-out period has elapsed under the plan

and the borrower’s payment performance has been satisfactory (i.e., all

required payments made on time). In addition, the borrower must receive

written permission from the counseling agency to enter into the mortgage

transaction.

 

A benefit of a home equity line of credit is that the approval process is less stringent than a home equity loan. However, a lender will still look at your creditworthiness and the market value of your home. A home equity line of credit often allows for a higher percentage of the appraised value to determine the maximum amount of the credit line. Also, closing costs are usually lower than a home equity loan. In fact, there is so much competition that many lenders offer home equity lines of credit with no closing costs. Beware that these loans may have a higher initial interest rate, so compare the APR carefully.

Followings are some smart ways to spend Secured Home Equity Loans:

• Take control of your debt.

Tired of paying high-interest monthly payments to credit card companies? Pay off all those debts at once and enjoy one low monthly payment.

• Remodel your home.

In addition to the obvious short-term benefits, home improvement can be a great investment. Adding a bedroom or updating bathrooms is a great way to increase the value of your home.

• Finance an education.

A Home Equity of Credit may be just the thing for covering tuition bills and other expenses as they come due.

• Buy your dream car.

If your car is on its last legs or you’re ready for an upgrade, your home’s equity can help put you in a new set of wheels.

Once you have decided upon the home that you are going to buy, you can quickly apply for secured home equity loans. Your old house can serve as collateral. Home equity loans offer you the following benefits:

• Larger loan amount

• Flexible terms

• Bigger repayment term

• Nominal interest rates

Besides knowing advantages of secured home equity loans, you should also get acquainted with some things that you should be careful about. First, you need to completely aware of your own requirement. Secured equity home loans offer bigger amount does not mean that there is no limit. You should go for a limit, which is affirmation with your financial status and need.

FHA Mortgage Requirements

FHA loan qualifying  requirements have been relaxed as part of the Federal government’s Housing and Economic Recovery Act, 2009. The purpose of the act is to provide some relief for home owners affected by the subprime housing finance crisis, and to help stabilize the housing market overall.

Relaxing the FHA mortgage requirements will allow more FHA insured mortgages to be issued, and in some parts of Florida, will allow FHA loans to be issued for higher priced properties than was previously allowed.

If you are like most suffering from mortgage stress, you should see whether the new FHA mortgage loan requirements will allow you to qualify for an FHA insured mortgage loan

Qualifying for an FHA Loan is easy

1. Age – you must be above the minimum age required to sign a FHA mortgage loan in your state. There is no maximum age limit for FHA qualifying.

2. Citizenship – you are not required to be a citizen in the USA, however  you must be a permanent resident of the USA legally paying US taxes.

3. Social Security Number – FHA Loans require you will require a valid Social Security Number; a Tax ID number is not sufficient.

4. You must have a at least 3.5% down payment (and you must be able to finance the closing costs of the FHA mortgage loan.

5. The property in question must be a residential home consisting of 1-4 units

6. The homes value cannot exceed the allowable maximum FHA loan limits for your area and the type of dwelling.

7. You will need to meet the FHA mortgage lender’s qualification requirements for an FHA mortgage loan. The requirements for FHA loans are generally more lenient than standard mortgage qualification requirements.

8. Qualifying Credit Score – you do not need to have a good credit score to obtain an FHA mortgage loan. FHA mortgage lenders cannot reject an FHA mortgage applicants because of having no credit history. If you have declared bankruptcy in the past, or have a past foreclosure, there will be some additional requirements before you can qualify for an FHA loan.

9. FHA  Income requirements – FHA has no minimum or maximum income requirement for FHA loan qualifying.

10. FHA Debt-To-Income Ratios – With an FHA loan you can use up to 35% of your Gross monthly income or before tax income towards housing, and up to 50% of your gross monthly income on the combination of housing plus all other monthly payments on your credit report.

11. FHA Down Payment – you will need a 3.5% down payment, but this can be in the form of a grant or gift.

12. Seller paid Closing Costs – you will need to be able to pay the closing costs of the FHA loan, but with FHA the seller can pay up to 6% to cover your closing cost including prepaid taxes and homeowners insurance.

Other FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price Gift for down payment and closing costs allowed. No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase  3 years after a Foreclosure. 

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.

www.FHAmortgageFHALoan.com

 FHA refinancing and new FHA loan information: These FHA mortgage loans will help you buy or refinance with a low down payment, backed by FHA/HUD.FHA mortgage loan requirements are more lenient than conventional requirements.

Almost any given day of the week there’s a good chance you’ll see at least one advertisement for a home equity loan on television. They are certainly growing in popularity. How do they work; however, and are there any benefits in them for you?

Basically a home equity loan allows you to borrow money using your home as collateral as long as you have paid down the original home loan so that you now have equity built up in the home. Let’s say you originally bought the home for $100,000 and have paid that loan down to $75,000. The home has also appreciated in value and is now worth $125,000. You could potentially take out a home equity loan for $50,000.

There are definitely some advantages to home equity loans. One of the most important is that you can usually obtain a lower interest rate on a home equity loan than many other types of loans. In addition, even if you have problems with your credit, you can probably still qualify for a home equity loan because you’re using the equity you’ve built up in your home as collateral. In addition, the interest you pay on the loan is typically tax deductible. Finally, unlike other types of loans in which you may only be able to borrow a small amount, with this type of loan you usually borrow far more.

Individuals who are considering large purchases often find home equity loans to be quite attractive. Such expenses might include the purchase of a vehicle, remodeling expenses, vacation, medical or education costs. In some cases, it can also be beneficial to consolidate debts that carry a high interest rate and pay them off with a lower interest home equity loan.

Like most everything else in life; however, there are some disadvantages to a home equity loan. One of the most important is that if you cannot meet the new payments for the loan, you could be at risk of losing your home. In addition, as more and more home equity loan lenders pop up, it has become increasingly apparent that some are being run by conmen who are only out to make a quick buck. Be sure to always check out any lender you consider with the Better Business Bureau to make sure they are actually legitimate.

Of course, the large number of lenders offering home equity loans today can actually be a positive factor for you because it means you have more bargaining power in terms of shopping around for the best rates.

Still not sure whether a home equity loan is right for you? Always make sure you are getting the best quote possible and ask yourself whether the reason for the loan is worth the risk you may be taking. If you feel that it is and you are confident you will be able to meet the payment schedule without becoming overburdened financially, start by doing your research first to ensure you have all of your bases covered.

Over the past few years many Americans have established lines of credit secured by the equity in their homes or have borrowed a lum sum amount secured by their home. For marginal borrowers this can turn out to be highly risky as it exposes these families to the loss of their homes.

Lenders tend to quickly change colors from friend to foe in times of financial crisis and will “take it away if you can’t pay”.

Prior to mortgaging or refinancing a home you should consider what your families finances would look like if one or more of your family members living in the home lost their job or came down with a serious illness.

How long could you keep the home payments current if there was an unfortunate long term loss of family income?

In spite of the dangers of refinancing or taking out a home equity loan there are times when it may in fact be wise.

Perhaps credit card debt has gotten out of hand. You can get a home equity loan at much lower rates, pay off the credit card debt, and lower your monthly payments, perhaps as much as by 50%.

A word of warning, however. You must not run up your credit card balances once again or you will end up in even worse financial shape than you were to begin with. The second time around trying to carry high credit card debt and a home equity loan payment may be more than painful. It may be financially fatal.

It would be far safer to avoid temptation by cutting up your credit cards and using a debit card instead.

There are other occassions when a home equity loan may be justified. Perhaps you wish to start your own business and are willing and able to take the risk that things may not work out as you plan.

Your home equity will likely be the cheapest source of start up capital that you will find other than going hat in hand to family members. For most families a “friendly” family loan is not recommended as the resulting strife that often takes place if things don’t go as planned causes painful family problems.

Even when all does go well you may get tired of listening to advice from your unofficial business partners.

Perhaps you wish to purchase an existing business, one that should earn you a good income for a long time to come. Again your cheapest source of capital would likely be a home equity loan.

In general, one should consider a home equity loan when the loan proceeds are used to very likely improve ones financial position. This would be a wise use of the loan proceeds.

One should use extreme caution in using a home equity loan to purchase additional consumer goods, say a large expensive flat screen TV set or a new SUV.

The worst example of the use of a home equity loan that I know of was a couple who took out a loan in order to go to the Superbowl. Just think of how much that Superbowl trip will really cost over the years
as interest payments are added in. What a terrible short sighted financial decision.

My advice. Use a home equity loan only to improve your financial position or to raise funds in a true emergency situation. Using a home equity loan to purchase things that will only lose value is a misuse of the loan proceeds that could cost you what is probably your most useful and valuable possession … your home sweet home.

FloridaFHA Mortgage Lender :: Florida FHA Loan :: Florida Home Loan ::

http://www.FHAmortgageProgram.com   is your one stop shop for everything FHA loan  related in Florida. As an Florida FHA mortgage lender specializing solely in FHA  home loan in the state of Florida we are well versed in every aspect of the FHA home loan in the State of Florida.  Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida FHA home loan applicant the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3.5% of Sales Price Gifts are allowed
Seller can credit up to 6% of sales price towards closing and prepaid costs.
100% Financing available
No reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements.
FHA will allow a home purchase 1 year after a Bankruptcy.
FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 begin_of_the_skype_highlighting              1-800-570-0448      end_of_the_skype_highlighting or use our quick application to find out more about the many FL mortgage programs we can make available. Or Apply now for a FL FHA home loan.

www.FHAmortgageFHALoan.com

Since the Florida mortgage meltdown went bust there has been a massive increase in Florida FHA mortgage applicants. Florida FHA loans have become popular for many reasons. Some of the reasons that FHA financing has become the best source of financing for Florida homebuyers  purchasing or refinancing their primary residence includes:

High LTV Florida FHA Home Loan Purchases- Florida FHA mortgage lenders allow for 97.75% of the purchase price to be financed. Conventional Florida lenders requires a minimum of 10% of the purchase price to be put down from the Florida home buyer. A Florida FHA loan will save any buyer purchasing their primary residence from having to put the additional 6.25% of the purchase price that conventional financing would have required them to do. This higher loan to value allows the Florida FHA loan applicant to keep more of their hard earned money in their pockets instead of locked up in the equity of the Florida home. In today’s market where sales prices have been falling it makes perfect sense to keep as little out of pocket expenses locked in the equity of Florida home as possible. 

Now More Florida property types allowed for FHA Financing – Florida FHA home loans now allow Florida home buyers to financing not only your typical 1-4 unit single family or multifamily homes, but also mobiles homes, Florida manufactured home loans, condos and townhouses. Conventional Florida mortgage lenders will not do Florida mobile homes or manufactured homes and they put sever restrictions on financing condos or townhouses. This is another reason that the Florida FHA loans are  far superior to conventional financing in Florida. If you have a property type that others have turned you down over, we can show you how to use a Florida FHA home loan to meet your needs!

FHA mortgage insurance cost less – Florida FHA mortgage loans provide much lower mortgage insurance premiums than conventional financing does. Typically your  FHA mortgage insurance will cost a Florida FHA mortgage applicant  1/2 of the cost of conventional Florida mortgage insurance. This is even more monthly savings that a Florida FHA loan will be able to provide over your typical conventional loan. 

Higher FHA cash refinance limits allowed - Florida FHA cash out refinances will now allow for 85% of the appraised value of the Florida home  to be obtained when doing cash out on your Florida home. If you just want to lower your interest rate, Florida FHA refinances can go up to 96.5% of the value of your home to help you lock in a lower 30 year fixed Florida mortgage rate. Conventional loans only allow borrowers to cash out up to 80% of the value of their homes. The Florida FHA loan allows an additional 5% over what typical conventional lenders will allow. More cash in your pocket with a Florida FHA cash out refinance!

www.FHAmortgageFHALoan.com

 

Serving These Fine Florida Communities:

Arcadia :: Boca Raton :: Boynton Beach :: Bradenton :: Brandon :: Cape Coral :: Clearwater :: Clewiston
Crestview :: Daytona Beach :: Deerfield Beach :: Deland :: Delray Beach :: Deltona :: Destin :: Englewood
Fort Pierce :: Ft. Lauderdale :: Ft. Myers :: Ft. Walton Beach :: Gainesville :: Hollywood :: Homosassa Springs
Jacksonville :: Key West :: Kissimmee :: Lake City :: Lakeland :: Lynn Haven :: Marathon :: Marco Island
Melbourne :: Miami :: Miami Beach :: North Fort Myers :: North Miami Beach :: Naples :: Ocala :: Okeechobee
Orlando :: Ormond Beach :: Osprey :: Palatka :: Palm Bay :: Palm Beach :: Palm Coast :: Panama City :: Pensacola
Pompano Beach :: Port St. Lucie :: Punta Gorda :: Santa Rosa :: Sarasota :: Sebastian :: Sebring :: Springhill
St. Augustine :: St. Petersburg :: Tallahassee :: Tampa :: The Villages :: Titusville :: Venice :: Vero Beach
Wauchula :: Wesley Chapel :: West Palm Beach :: Winter Park

Serving These Fine Florida Counties:

Alachua :: Baker :: Bay :: Bradford :: Brevard :: Broward :: Calhoun :: Charlotte :: Citrus :: Clay :: Collier
Columbia :: Dade :: DeSoto :: Dixie :: Duval :: Escambia :: Flagler :: Franklin :: Gadsden :: Gilchrist :: Glades
Gulf :: Hamilton :: Hardee :: Hendry :: Hernando :: Highlands :: Hillsborough :: Holmes :: Indian River :: Jackson
Jefferson :: Lafayette :: Lake :: Lee :: Leon :: Levy :: Liberty :: Madison :: Manatee :: Marion :: Martin :: Miami-Dade
Monroe :: Nassau :: Okaloosa :: Okeechobee :: Orange :: Osceola :: Palm Beach :: Pasco :: Pinellas :: Polk
Putnam :: Saint Johns :: Saint Lucie :: Santa Rosa :: Sarasota :: Seminole :: Sumter :: Suwannee :: Taylor :: Union
Volusia :: Wakulla :: Walton :: Washington

FHA :: Mobile Homes ::