With fewer and fewer licensed, FHA-Approved mortgage brokers in the Lakeland, Florida area, it’s an honor for me to be in the position to help local Lakeland mortgage borrowers purchase homes with a low 3.5 percent down payment Lakeland FHA home loan.
Lakeland FHA home loans are a great option for new homeowners – specifically those who are just now becoming first-time home buyers. Credit history requirements are a bit different – and in some cases more lenient than with conventional mortgages – as things are based more on your “credit worthiness” rather than a specific score.
The low 3.5 percent down payment requirement also helps limit the barrier to entry as it represents a sizable reduction from the 15 to 20 percent required by conventional lenders.
These are just some of the reason why Lakeland, Florida First-Time Home Buyers benefit from FHA mortgage loans.
There’s a lot involved with buying any home, much less your very first home. Each day, my Lakeland home loan clients ask new and more insightful questions about FHA home loan. As such, I felt that it would be helpful for me to post them here so that they’ll be available to all Lakeland FHA First-Time Home Buyers.
Should you have any questions about the information provided in this article, please feel free to contact me via phone, email, or online application form. I’m always eager to provide my clients with individualized assistance in understanding some of the finer details of what is described below.
Kevin Sandridge, Licensed Florida Mortgage Broker
Signature Home Funding: 863-604-3019
Lakeland FHA First-Time Home Buyer Basics / FAQ
What is a Mortgage?
Basically, a mortgage represents a financial contract between a borrower and a lender containing terms of re-payment where real property (your home) is used as the collateral to secure the debt.
Where does mortgage money come from?
Home loans are backed either by individual financial institution deposits (portfolio loans), or are funded from financial vehicles like Mortgage Backed Securities, which you might picture as a large bundle of mortgages sold together in a lump by banks and lenders to Fannie and Freddie in exchange for more money to lend.
Does the FHA provide the money for home loans?
No, The Federal Housing Administration (FHA) itself does not provide the money for home loans. Rather, the FHA was set up back in established in 1934 as part of the National Housing Act of 1934 for the purpose of stabilizing the housing market by providing insurance for home loans.
Lenders lend the money to folks who qualify per the FHA requirements, and the FHA agrees to back the lender if the borrower defaults on the loan. Think of the FHA as an insurer, not a lender.
Can’t Any Mortgage Broker Help Me With My FHA Home Loan?
No. Mortgage companies are required to meet stringent guidelines and licensing requirements and must undergo special FHA audits, as well as state and federal regulation.
How do I know this, well one – it’s the law! But more importantly, I’m a qualified Lakeland Mortgage Broker!
How do I qualify for a Lakeland FHA Mortgage?
The following elements are taken into consideration by the FHA in order to approve borrowers for loans:
- Amount of mortgage loan amount
- Polk County, Florida FHA lending limits
- Your income, employment and other personal documentation
- Your overall credit worthiness
- Your having down payment totals and funds to close
- Your intended home’s appraisal and other property conditions
What is my next step?
Give me a call or complete a Lakeland FHA mortgage application on line. I’ll help you go through the steps required to gain FHA loan approval. Once you’re approved, I’ll provide you with a mortgage loan commitment letter, and I’ll also send a copy to your Lakeland real estate agent. You’ll find that your bargaining position will be vastly improved when you can show a seller – whether it be an individual or a bank – with a letter stating that you’re ready to sign on the dotted line!
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remember that it is best to pay less than 30% of your net monthly income toward mortgage payments each month. While you may think you can afford more, with the current state of the economy, it is best not to over-extend yourself financially.Thanks a lot blogger for such a nice post about mortgage payments .
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