Florida Mortgage News

Home title seasoning requirement – FHA /USDA

admin — Sun, 19 Feb 2012 21:03:53 +0000

We are frequently asked questions about the FHA and USDA requirements regarding the 90 days title seasoning rule. First a little background on what title seasoning is for those that do not know –

Title seasoning refers to the amount of time a homeowner has been on the deed or held ownership in a property. Title seasoning guidelines exist to limit property flipping by investors. Most mortgages today have title seasoning guidelines (generally 90 days min) to prevent real estate investors from taking advantage of homebuyers for profit.

USDA Rural Housing Loans -

USDA does not have any specific requirements regarding title seasoning. An investor can purchase a home and turn around and re sell /flip it to you the buyer within a 90 days period. However…. the lender could require that two separate appraisals be performed on the property to insure the home value is true and accurate. Again, this is all done in an effort to protect the lender and especially the home buyer interest.

FHA Loans-

FHA states there is no 90 days seasoning requirements for investor flip properties. Please click here for more information.

However, what we find is most FHA lenders will have their own rules in ADDITION to what FHA says. This is called a “lender overlays” and it’s very common among most banks and lenders.

Example – FHA states they will insure 96.5% loans with credit scores down to 580. However, it would be difficult to find any banks or mortgage lenders willing to accept them with credit score below 600 or even 620. Same thing applies to the title seasoning requirements. FHA states that this is ok, but most FHA underwriting lenders will not accept them due to the possible incurred risk.

Keep in mind that USDA Guarantee and FHA loans are underwritten through approved lenders, not the actual FHA or USDA.

For more info on USDA mortgages in Florida, please visit www.UsdaMortgageSource.com , for FHA mortgages please visit www.FhaMortgageSource.com

Serving all of Florida 7 days week including -

Alachua County – Gainesville, Baker County – Macclenny, Bay County – Panama City, Bradford County – Starke, Brevard County – Titusville, Broward County – Fort Lauderdale, Calhoun County – Blountstown, Charlotte County – Punta Gorda, Citrus County – Inverness, Clay County – Green Cove Springs, Collier County – Naples, Columbia County – Lake City, De Soto County – Arcadia, Dixie County – Cross City, Duval County – Jacksonville, Escambia County – Pensacola, Flagler County – Bunnell, Franklin County – Apalachicola, Gadsden County – Quincy, Gilchrist County – Trenton, Glades County – Moore Haven, Gulf County – Port St. Joe, Hamilton County – Jasper, Hardee County – Wauchula, Hendry County – LaBelle, Hernando County – Brooksville, Highlands County – Sebring, Hillsborough County – Tampa, Holmes County – Bonifay, Indian River County – Vero Beach, Jackson County – Marianna, Jefferson County – Monticello, Lafayette County – Mayo, Lake County – Tavares, Lee County – Fort Myers, Leon County – Tallahassee, Levy County – Bronson, Liberty County – Bristol, Madison County – Madison, Manatee County – Bradenton, Marion County – Ocala, Martin County – Stuart, Miami-Dade County – Miami, Monroe County – Key West, Nassau County – Fernandina Beach, Okaloosa County – Crestview, Okeechobee County – Okeechobee, Orange County – Orlando, Osceola County – Kissimmee, Palm Beach County – West Palm Beach, Pasco County – Dade City, Pinellas County – Clearwater, Polk County – Bartow, Putnam County – Palatka, Santa Rosa County – Milton, Sarasota County – Sarasota, Seminole County – Sanford, St. Johns County – St. Augustine, St. Lucie County – Fort Pierce, Sumter County – Bushnell, Suwannee County – Live Oak, Taylor County – Perry, Union County – Lake Butler, Volusia County – DeLand, Wakulla County – Crawfordville, Walton County – De Funiak Springs, Washington County – Chipley, FL

FHA Home Loan Details

admin — Wed, 15 Feb 2012 22:41:46 +0000

The FHA home loan is a mortgage that is insured by the Federal Housing Administration. The FHA does not provide money directly to borrowers; rather they insure the mortgage against a default. This makes Federal Housing Administration borrowers particularly attractive to lenders. The lenders know that if the borrower fails to pay, they can come after the FHA for a portion of their money.

Borrowers who pay a down payment of less than 20% of the principal of their home are expected to buy private mortgage insurance (PMI). FHA home loans also require a 1% funding fee that is included in the borrower new loan.

A little FHA History:

The Federal Housing Administration was conceived in 1934. In 1965, it joined with the Department of Housing and Urban Development (HUD). During its lifetime, the Federal Housing Administration has insured more than 30 million mortgages. About 800,000 people who currently hold mortgages have a loan through the Federal Housing Administration. The Federal Housing Administration operates from the proceeds of PMI purchased by home buyers whose down payment was less than 20% of the principal of the home.

Who Qualifies for the FHA Home Loan?

When most people think of a Federal Housing Administration loan, they think of the first time home buyer. Certainly the FHA enables first time home owners in Florida to purchase their home with little money down, but an FHA loan may be an option for you even if you have bought a home before. Many “move up” buyers find the FHA to be an attractive loan option.

Requirements for qualifying for a Federal Housing Administration Loan:

1. Decent credit record – generally at least a 640 credit score is required.

2. Down payment – as little as 3.5% down.

3. Job History – generally 2 year min.

3. Housing costs that equal no more than 29% of your gross annual income (if you are a first time home buyer, this rule ensures that you do not purchase too much house and get into trouble with debt)

Types of Federal Housing Loans:

By far, the most popular type of loan is the fixed rate loan (203B). This loan allows for a low down payment (3.5%), and also allows moneys used for closing to come from gifts.

Five Stars is Florida’s leading home loan information resource – serving all Florida home buyers 7 days a week. Questions about FHA loans in Florida ? Please call visit our FHA loan page here

Orlando FL, Tampa FL, Jacksonville, Daytona Beach, West Palm Beach, Miami Dade

100% USDA Rural Housing Highlights

admin — Tue, 14 Feb 2012 00:34:25 +0000

Florida first time homebuyers and current home owners should take a close look the no money down USDA mortgage.

USDA Loan Program highlights:

No Down Payment – Florida’s only true 100% home loan
Low Monthly Mortgage Insurance – Keeps your monthly payment low
No Cash Reserve Requirement
USDA 100% Financing is a top choice among Florida First Time Home Buyers
No Limitation to the purchase price or loan amount- loan is based on qualifying.
Can finance up to 102% of the appraised value
Down Payment Assistance can be used from non profits– can be used to put money down to lower loan amount.
No limits to the concessions the seller can make – seller paid closing costs
Rates are typically the same as FHA Home Loans or Conventional Mortgages

Many popular locations around Jacksonville, Tallahassee, Gainesville, Orlando, Tampa qualify for Rural Housing. Learn more by visiting www.UsdaMortgageSource.com or calling 904-302-6060

First Time Homeowners advice 2012

admin — Tue, 24 Jan 2012 04:38:12 +0000

So you are thinking about taking that big step towards first time homeownership in Florida. For many first time homebuyers the process can be overwhelming and you will have many question. This is to be expected from any first time homebuyer and to help we have outlined some tips and advice to consider before taking the plunge and purchasing your first home in Florida.

First and foremost you must remember that buying a home is the most important financial decision you will ever make. It’s important to insure you have true professionals assisting you along the way. The home buying process will generally always start with the mortgage pre approval. You must determine if you are qualified and for how much before you start looking for that special home. What type of first time buyer program mortgage will best fit your needs? FHA loan? 100% no money down USDA Rural ? Maybe if you are military the VA home loan option will be the best choice. What type of down payment or cash would be needed from you? This is an example of some of the questions involved in the mortgage loan prequalification process.

Tip #1

Insure you speak to a trained mortgage professional before contacting a realtor to show you property. Generally any home sellers will require to see that the homebuyer is pre approved for their mortgage before considering any offers. Most real estate agents will also require you have loan approval before working with you. Remember, everything starts with the mortgage financing and all parties need to insure you are qualified to close on the transaction. Take time to understand the different first time buyer programs available to you like FHA, 100% USDA Rural Housing, etc

Tip #2

Work with a local mortgage professional. If you are looking to purchase a property in Florida, insure you work with a mortgage professional located here in Florida and not a toll free call center located in Michigan. Each state has different “twists and turns” on the way mortgage financing works. Working with a mortgage advisor in your state will help insure you have smooth transaction as they know the requirements related to taxes, insurance, closing costs, etc.

Tip #3

Your realtor – this is another important part of the process for many reasons, especially for first time homeowners. Keep in mind, if you find a house you want to see, you are not required to work with the realtor that has the listing. Many first time buyers assume they must call only the realtor that is listed on the sign – this is false. Some even argue that this is bad idea as the listing realtor generally represents the home sellers interest first and foremost. We recommend that you have your own licensed Florida realtor that is representing you and only you. Your realtor can show you any home that is listed in your area regardless of the real estate company that has the sign in the yard. They can even assist you with new homebuilders. You realtor will assist you with scheduling all home showings, contract negotiations, etc. If you need assistance finding a great real estate agent in your city, just contact us and we will be happy to make the connection for you.

Tip #4

Many properties listed for sale on the market today in Florida are some form of a distressed sales or short sale, etc. These properties will require full approval by the bank before anything happens. Remember to never pay for any upfront costs like home inspection, appraisal, etc until your home contract is fully approved by the selling investor or bank. The only exception to this is the customary earnest money or “good faith” deposit. Getting the full bank approval can sometimes take months to complete depending on the bank or investor that owns the home. For short sales especially, the current home owners approval only is NOT a full approval when secondary bank approval is required. This is important to remember.

USDA Mortgage Source works with first time buyers throughout the state of Florida. 100% USDA Rural Development, FHA and VA home mortgages. Please contact us 7 days a week at 904.302.6060 and visit www.UsdaMortgageSource.com for all the latest USDA mortgage eligibility requirements here in Florida.

Current Rural Housing USDA Income Limits

admin — Thu, 19 Jan 2012 16:57:48 +0000

Please see the new income requirements for Florida USDA Development in 2012. Great news, most of the counties in Florida has increased so more homebuyers can now qualify. Income limits vary from county to county. Remember, other deductions related to child care expenses, disability, elderly, etc and also be applied. Please insure to contact www.UsdaMortgageSource.com for any questions related to the USDA Rural Development eligibility requirements here in Florida.

COUNTIES	1- 4 person household	5 – 8 person household

All FL & VI counties EXCEPT those listed below:	$74,750	$ 98.670
Clay, Duval, Nassau, St Johns	$77,400	$102,168
Collier	$83,750	$110,550
Manatee and Sarasota	$75,200	$99,264
Okaloosa	$78,650	$103,818
Palm Beach	$87,550	$115,566
NOT ELIGIBLE are Broward, Pinellas and Monroe
Add 8% of 1-4 person limit for each person in excess of 8 persons.

Attention Florida first time homebuyers – now is great time to achieve your dream of homeownership. Interest rates are at all time lows and property values are again affordable. Why rent when you can own a home for less? Learn more about the benefits of 100% no money down USDA mortgages here in FL by calling 904.302.6060 or visiting www.UsdaMortgageSource.com

Located in a major city like Jacksonville, Orlando, Tampa, Miami West Palm Beach? outside of the USDA eligible zone? Please visit www.FiveStarsMortgage.com to learn more about the other home loan options available in Florida.

Serving the state of Florida only, including Jacksonville FL, Orlando FL, Tampa FL, Tallahassee FL, Gainsville FL, Ocala FL, Sarasota FL, Cape Coral FL, Naples FL, Lakeland FL

Florida VA Home Loan Purchase & Refinance

admin — Tue, 03 Jan 2012 19:41:28 +0000

The Veteran’s Administration (VA) home loan mortgage is perfect for past or present military looking to purchase a Florida home for little or no money down. The VA loan program is a government mortgage program backed by U.S. Department of Veterans Affairs and provides a number of homeownership opportunities in Florida with no down payment needed. The government backed VA home loan is available to active duty military personal, honorably discharged veterans or their widows. This is one of the last remaining mortgage programs that still allow home buyers to purchase their Florida home with NO MONEY DOWN. First time home buyers and current homeowners in Florida with a VA certificate of eligibility are permitted. Regardless of your financial or mortgage knowledge, Five Stars would be more than happy to assist you. We take the time to answer all your questions and educated you on the tremendous advantages of VA home loans here in Florida. Listed below are some of the highlights for the Florida VA purchase and Florida VA refinancing program.

The VA Mortgage Advantage –

• VA home loans require NO money down – up to 100% financing in Florida.

• There is NO monthly mortgage insurance (PMI) like other home loans.

• Most closing costs can be paid by the property seller.

• Very little assets required to qualify.

• Qualifying for a VA loan with a low credit score is possible (min 640 credit score is required)

• Mortgages are a secure low 30-year fixed rate or adjustable rate – No prepayment penalty.

• VA home loans are for new & existing properties. Only primary homes – no investment or 2nd homes

Florida VA Mortgage Purchase

The Florida VA home loan program requires no down payment and you may finance up to 100% of the appraised value. Since the end of down payment assistance programs in 2008, the VA home loan program along with the 100% USDA loan has become the last two remaining 100% home loans in Florida. With many conventional loans in Florida now requiring 10-20 percent down payment, the Veteran’s Assistance home loan is a great choice for home buyers with limited or no down payment.

More than 29 million veterans and service personnel are eligible to receive VA Home Loans. VA home loans were established to provide financial assistance in purchasing your home with a limited or no down payment. However, many of the Americans that qualify for this beneficial home loan never take advantage of it. For qualified applicants, the VA guarantees 100% home loan amounts up to $417,000, some Florida counties are slightly higher. That means you can purchase your home with NO money down and NO monthly mortgage insurance. VA home loans also allow for seller contributions towards the home buyers closing costs.

Funding Fee Table	Regular Purchase Loans
	Type of Veteran	Down Payment	First Time Use	Subsequent Use
	Regular MilitaryOr Veteran	None5% or more (up to 10%)10% or more	2.15%1.50%1.25%	3.3% *1.50%1.25%
	Reserves/ National Guard	None5% or more (up to 10%)10% or more	2.4%1.75%1.5%	3.3% *1.75%1.5%

NOTE: Veterans who qualify as 10% disabled or greater as a result of active military service are not required to pay a funding fee. Those who are not exempt from a funding fee may lower their fee by putting money down on their VA home purchase. For all VA home loans, the funding fee may be paid in cash or it may be rolled into the loan.

Florida VA Refinance- Streamline and Cash Out

Florida Streamline Refinance:

The VA has created a program called the Streamline Refinance to provide a way for current VA homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster “streamlined” and with less much documentation than a typical loan.

An Interest Rate Reduction Refinance Loan or “Streamline Refinance” allows you to refinance your current mortgage interest rate to a lower rate than you are currently paying. This is only available to veterans who are refinancing their original VA mortgage and utilized their original eligibility. No cost Streamline refinance lets you refinance your mortgage with no out-of-pocket expenses.

Florida VA Streamline Refinance Basics:

Loan assumptions are not permitted.
The homeowner cannot receive any cash back.
Streamlined Process – VA does not require an appraisal, any income or employment verifications, no credit report and no termite report, yet the mortgage must have been paid as agreed for the last twelve (12) months and must be up to date at the time of refinancing.
Any other liens must be subordinated to the VA loan.
This loan can be done with “zero out of pocket money” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.

Florida VA Cash Out Refinance:

Life is full of surprises and sometimes you may need additional cash quick. Maybe you need to pay school tuition, or make some long needed improvements that will increase the value of your home prior to sale. Maybe you just want to take advantage of lower interest rates so you can keep more of your hard-earned money in your own pocket. It may be the time to consider the many options available for refinancing your VA Home Loan.

Whether you need money to consolidate high interest credit card debt, pay for school tuition, buy a new car, or make home improvements to your home, VAMortgageDepot.com can provide all the necessary information to get you the cash you need through a refinance.

A VA refinance transaction involves repayment of your current real estate debt from the proceeds of your new VA mortgage that has the same borrower(s) using the same property. This is called a “Cash Out” Refinance. Cash-Out Refinances are used for homes that are used as a principal residence by its owner. That owner can refinance for up to 90% of the appraised value plus all closing costs. There is no minimum amount of time that you must own your home, yet your home must have sufficient equity to qualify for the loan.

*VA Funding Fee’s for Streamline & Cash-Out Refinancing Loans*
Cash Out	Percentage for First Time Use	Percentage for Subsequent Use
Regular Military / Veteran	2.15%	3.3% *
Reserves/National Guard	2.4%	3.3% *

Streamline Refinance	Percentage for Either Type of Veteran – Both First Time or Subsequent Use
All Regular Military / Veteran	.50%

To learn more about the benefits of 100% no money down VA loans in Florida – please visit www.FiveStarsMortgage.com or call us at 800-871-2636. Five Stars is Florida’s leading Government loan information resource, serving all of Florida including –

Current USDA home mortgage requirements 2012

admin — Tue, 03 Jan 2012 14:33:16 +0000

Outlined below is the general 100% USDA Rural Development home loan requirements for 2012. Please read below for the basic USDA mortgage guidelines here in Florida and contact USDA Mortgage Source for more information – www.UsdaMortgageSource.com or Ph:904-302-6060

USDA Credit score requirements – 620 minimum credit score is required. However, this credit score requirement alone does not guarantee USDA home financing. Additional requirements include – No repeated late payments on any credit trade lines within the last 12 months. No short sales, foreclosures or bankruptcies within the last 3 years.

Job and work history – solid two year history with documentable income. Recent college grads that have just started in the work force are exempt from this requirement. Applicants are ok if they have switch around jobs, as long as they have no unexplainable extended gaps of employment.

Eligibility income for USDA home loans - In general, Florida households with 1-4 members = max $74,050 gross income per year. Some counties are much more. Households with 5+ members can make even more, over $100,000 in certain counties. USDA also allows deductions for child care, elderly, disabilities, etc. Please click here to learn more about USDA income restrictions and contact us with any questions.

Eligible USDA Property – Any single family residence, townhome, etc that is located in a USDA eligible location. Many locations even around more populated locations like Orlando FL, Jacksonville FL and Tampa FL, Tallahassee FL, Gainesville FL and Ocala FL are currently eligible for USDA financing. Property being purchased can be a short sale, foreclosure, by owner, etc. Existing mobile homes are NOT allowed. Home must be a primary residence, no investment or rental purchases. Home must be livable, cannot be a “rehab” job.

Max USDA Rural Development loan amount – There is not a max loan amount with Rural Housing USDA. Home buyers qualify based on income limits put in place and max allowed debt to income ratios. Please click here. to learn more.

How long does the USDA mortgage closing and processing time take – Generally 40-45 days from the time the home buyer has a fully executed sales contract.

Max USDA Rural Development Financing – 100%, NO money down required! Home sellers can also pay closing costs for USDA home buyers.

USDA only for First Time Home Buyers? No, USDA can be used by any prospective home buyer. However, only primary homes are permitted – no second homes or investment properties allowed.

Florida FHA home loan mortgage refinance

admin — Tue, 27 Dec 2011 15:32:35 +0000

Most Florida homeowners know the mortgage industry is still recovering from the decline of the world economy a few years ago. Investments have increasingly become trickier and good paying jobs are so much more elusive than ever before.

As such, it gets a lot more challenging to pay monthly interests on debts and loans let alone paying off the principle. Therefore, it becomes extremely important to cut costs or save wherever possible and refinancing through FHA home loans is one very viable alternative.

The five most influential factors why you should seriously consider FHA refinancing are:

1. Debt Consolidation

Consolidating your debts to effectively pay it/them off at lower interest rates is probably the most important reason of all. Credit card loans, which have the highest interest rates around, can be fully paid off. The same can be said of student and car loans. When these are all consolidated through a Florida FHA loan, you would have a bigger opportunity to start saving big.

2. Extend the terms of repayment

Refinancing using an FHA mortgage allows borrowers a longer period of time to pay off their monthly obligations.

3. Low interest rates

Lightly mentioned in number 1, it would be of great advantage to collate all outstanding debts which have varying interest rates, into one monthly repayment obligation. Doing this through an FHA home loan literally guarantees you a low interest rate on a longer repayment term. FHA 30 year fix rates are currently at all time historic lows!

4. Fixed rates

To have a fixed monthly rate on your mortgage, which and FHA loan allows you to do, provides the borrower the opportunity to manage personal finances more accurately. Variable rates simply do not allow this to happen at such a degree.

5. Switching lenders

There are many advantages made available to the borrower when he/she switches lenders such as flexible term on loan repayments and various other options that can be greatly beneficial as well. You would have to carefully compare options before deciding.

Overall, FHA refinancing needs a little foresight before being undertaken. However, consider the options of not having to refinance your loans or debts; you would have to continue making different payments on a monthly basis and would have to keep track of a lot of details on each of those obligations. You would have to be wary of fluctuating interest rates, keep track of due dates to avoid expensive penalties and, perhaps the most difficult, try to manage all your finances to maintain a good credit score.

Five Stars is Florida’s leading FHA home loan mortgage resource. Servicing all of Florida including – Jacksonville FL, Tampa FL, Orlando FL, Sarasota FL, St. Petersburg FL, Clearwater, FL please call us or fill out the short information request form (right side of home page) for assistance.

Florida FHA loan approval application

admin — Thu, 15 Dec 2011 04:27:09 +0000

Below we have listed some simple steps to help Florida home buyers successfully get their FHA mortgage loan approval. Florida first time home buyers will find the information below especially useful.

You have to be aware of what you need do before applying as well as know the process of your application, the documents required, and finally, the closing which is where you are righteously given the keys to your new house.

Before Loan Application:

Debt-to-income ratio
Careful analysis has to be done here. Lenders vary on precise amounts but a debt load that’s higher than 45 percent is risky for an FHA loan. You will need two years of employment preferably without a decline in pay.
Credit check
It’s usually the small things that bite and bring you down so dig deep. Check your income, credit, as well as rent history (paying rent to parents to board in their home does not qualify, mind you) that might show up on a credit report. Get everything on the up and up, aiming for a clean record.
Credit score
A credit score of 640 or better would be ideal for the 3.5% down payment FHA. If you came out of a bankruptcy or foreclosure, you would need to have maintained a perfect credit since then (4 years and 5 years respectively).
Fill out the Buyer’s information request which tells the lender what you have and what you need. >>>

Application proper:

This will aid the lender in creating a customized strategy to aid you in attaining FHA mortgage approval. A FHA loan application will have to be filled out that detail everything about you, the borrower, which will be used in figuring out whether you’re eligible for a loan or otherwise. The rate and the terms of the loan will also be determined largely by the information in your application form.

In the event the your FHA loan application is preapproved, you will get the disclosure documents which are essentially initial loan documents that have all the minute details regarding the terms, interest rates, cost and payments of the loan.
This has to be signed and returned along with other documents such as your bank statements, IDs, references, etc., for verification purposes. Usually these documents are prepped and readied well before the loan application is submitted to the lender.
The processor reviews all verifying documents and requests for missing or any additional documents from the borrower if need be.
Upon completion, the documents are then submitted to the underwriter.
The underwriter will send a Conditions List of additional missing items or documents to the buyer.
Once the buyer completes the needed items on the list, it’s sent back to the lender for final approval. A closing date is then set.

Note: The entire FHA loan application & closing process here in Florida takes about 3 weeks to a month to complete.

Questions? Please call or visit our main site at www.FiveStarsMortgage.com or just fill out the quick information request form on the right side of your screen.

Serving all of Florida Including Sarasota FL, Tampa FL, Fort Myers FL, Naples FL, Cape Coral FL, Key Largo FL and Key West FL

FLA

Florida Jumbo Mortgage Loans

admin — Mon, 12 Dec 2011 22:26:08 +0000

Five Stars is a leading resource for Florida Jumbo loans. Jumbo loans in Florida have become very difficult to find, our resources still offer up to 75% loan to value for primary homes and 70% loan to value for second /vacation homes. Any single family residences and only full documentation loans permitted. Both fix rate and adjustable rate options available. If you have the equity, contact us about your next Jumbo purchase or refinance here in Florida. Interest rates are currently at all time historic lows, and Florida real estate is on sale for half price (in case you haven’t heard already)

Call us today, or just fill out the quick request form located on our home page.