Imagine your first Florida home purchase is a slam dunk? Your down payment is so low that you still have money left over in the bank. Your interest rate is so low that your monthly payment is less that you expected; you can now afford to sock away extra money into your savings account. And the sunlight bursts through the windows leaving a golden glow in the kitchen as you brew that first cup of steaming morning glory in your Florida dream home. You are living your own fantasy. For real.
Most people are daunted by the prospect of buying a home. Too many bad news features about the housing crisis have kept buyers on the sidelines for so long it’s hard to remember that when everyone else is selling it’s a great time to buy! Even when people consider (re)entering the market they must face that dreaded down payment. It can feel like it will take years to save. Once that hurdle is cleared, the lingering fear remains that they may be unable to afford a house they love; the payments would be just too high.
Because average home prices are lower in Ocala or Port St. Lucie, you’ll have more buying power than if you are locating in Fort Lauderdale or Miami.
However, many people are not related to the reality of the situation. Sometimes it just takes a little courage to take the plunge. Call your Florida mortgage brokers today and ask questions so you know the facts before you jump. Maybe you are not in a position to buy your ultimate dream home right now. But you may be closer than you think. Home prices have dropped significantly, and interest rates are at an all time high, keeping Florida mortgage payments low.
Enter an FHA mortgage: that fabulous mortgage program, cape blowing in the wind, standing strong and powerful like Superman.
FHA mortgages aren’t new. They’ve been around a quite a while. Just as it was designed to be, and through the test of time, the FHA mortgage solution is the still the bread and butter for first-time homebuyers.
First-time Home Buyers: Four Awesome Reasons To Go with The FHA
1. The part that tickles every prospective homeowner’s ear is the mega-low down payment requirement. FHA only requires a minimum of 3.5% of purchase price. Compare that to 10-30% on conventional loans. Ok, ok we’ll do the math for you. On a $200,000 house you only need $7,000 down with an FHA loan compared to at least $20,000, likely much more, with a conventional loan. Wham, you are already in the money with your Florida FHA mortgage!
2. FHA Mortgages tend to have even lower interest rates than convention loans. In today’s interest rate climate, if you quality for an FHA mortgage, it’s almost crazy NOT to buy a house.
3. Zero payoff penalties. Convention loans might have prepayment penalties (several thousand dollars in some cases) if you want to pay the loan off earlier that the specified term. With FHA, go ahead and pay it off, on your schedule, and without any penalty. Though, with these low interest rates, it’s very possible that your best financial option would be to keep that loan in place for as long as possible. Your Florida mortgage broker can help you navigate the financial implications of all your home-buying choices.
4. FHA loans can be assumed. If you sell your house, you can transfer your loan to another qualified buyer. This can make for a super slick resale transition, without the borrower having to apply for another mortgage first.
Of course, there are many factors involved in finding the right home and obtaining the best mortgage for your Florida home purchase. As your Florida mortgage brokers, we will help you weigh all the factors. We will make sure you are getting the best loan for your unique financial situation and tailored to your lifestyle needs. You can expect us to ask you a lot of questions so we can adequately assess your situation, and give you the best advice. But when you come into the office, please remember to ask us about the FHA (though we’ll probably discuss it before you even ask). It could be just the piece that makes all your other puzzle pieces come together.
So, come in and see us. We’ll help you determine the right loan for you, the amount of house you can buy, and then send you shopping. (That’s the fun part!)
Review the list of documents below for an idea of what information we will need from you to assess the Florida mortgage that best fits your needs:
- Address to your place of residence (past two years)
- Social Security numbers
- Names and location of your employers (past two years)
- Gross monthly salary at your current job(s)
- Pertinent information for all your checking and savings accounts
- Pertinent information for all your open loans
- Approximate value of all personal property
- Current check stubs and your W-2 forms (past two years)
- Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
