100 percent loan Panhandle

100 percent USDA loanThinking about purchasing a home, but have limited down payment?   Great news is nearly all of  Florida’s panhandle is still approved and eligible for the  100% USDA Rural financing. Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, Bay, Gulf, Calhoun and Jackson counties all have USDA approved locations. In fact many of these counties are 100 percent eligible for the USDA home loan.  Below we discuss some of the USDA home loan advantages for first time home buyers.

USDA Mortgage Advantages:

  • $0 Down Payment Required with USDA Rural Development! The USDA program is still allows no money down, 100% financing
  • Low 30 Year Fix Rate with NO Pre Payment Penalty. Competitive interest rates comparable to FHA loans (set by underwriting USDA lenders)
  • 102.75% LTV (100% plus 2.75% one- time guarantee fee that is added into new loan)
  • USDA Closing costs can be added into the loan if appraisal value is higher than sales contract price. Or paid by the home seller (up to 6%)
  • Very low mortgage insurance – 2 times lower monthly PMI costs when compared to the FHA mortgage.
  • No cash saving or large down payment required from borrower.
  • No limits or caps on maximum loan amount.
  • No cash reserve requirement or min savings requirements.
  • Backed by the U.S. Government.
  • You are not required to be a first time home buyer.
  • Low fixed interest rates – some of the lowest of any mortgage program today.
  • Any single family home is ok regardless of seller – just has to be located in a USDA rural defined location. Pretty much all of the Florida Panhandle outside of the immediate Pensacola, Fort Walton Beach and Panama City area is covered under the USDA 502 Guarantee program. Contact us to discuss all the USDA approved houses in your area.  Ph: 904-302-6060

What are the steps to apply for USDA mortgage?

Applying for a USDA Rural Development loan is pretty easy. We have outlined below the general information that will be needed (asked from you) during the USDA loan application process so you can be prepared.

  • Complete (2) year living history.
  • Complete (2) year employment work history.
  • Income amounts for each household member – even if they are not listed on the loan application ( for income eligibility purposes)
  • Savings  – amounts in bank accounts and retirement accounts.
  • Explanation for any derogatory ( late, collection) credit accounts.
  • Credit report to be obtained by USDA lender – min 620 credit score needed to get approved.

This is the basic information that will be asked during the USDA loan application process. The USDA mortgage application process generally takes about 30 minutes on the phone to complete. All applicants can expect a loan pre approval decision in the same day.

USDA Mortgage Source is Florida’s primary source for all USDA RD mortgages. Assisting home buyers in Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, Bay, Gulf, Calhoun and Jackson county.  Need help, or want to learn more?  Please submit the short Info Form on the right side of this page for quick service. Mobile phone users can find the Info Request Form here.  You can also call us anytime at  ph: 904-302-6060

Port St. Joe, Wewahitchka, Brent, Brownsville, Century, Cantonment, Ensley, Gonzalez, Myrtle Grove, Pensacola. Avalon Beach, Gulf Breeze, Jay, Milton, Navarre, Pace FL. Crestview, Destin, Fort Walton Beach, Laurel Hill, Mary Esther, Niceville, Shalimar, Valparaiso. DeFuniak Springs, Freeport, Miramar Beach, Paxton, Point Washington, Redbay, Santa Rosa. Bonifay, Esto, Noma, Ponce De Leon, Westville. Altha, Blountstown.  Chattahoochee, Greensboro, Gretna, Havana, Midway, Mount Pleasant. Panama City Beach,  Youngstown, 100 percent loan Panhandle 2015. 2016

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FHA Streamline Refinance Guide

FHA streamline refinanceGreat news for homeowners that currently have a FHA backed mortgage.  Many FHA homeowners have the opportunity to refinance with an FHA streamline refinance.  The FHA rate & term streamline makes refinancing easy for Florida – Georgia homeowners. Unlike other mortgage refinance options, the FHA streamline refinance program offers homeowners with an existing FHA mortgage to refinance into a lower rate without a new appraisal or any documentation of income or assets. Homeowners can be upside down on their mortgage and still refinance with no issue. In addition, FHA recently announced lower reduced mortgage insurance costs in 2015.  Depending on when the current loan was originally closed, the new lower mortgage insurance fees may be available to you. Let’s take a look at the latest FHA Streamline Refinance Guide below:

To be a candidate for a FHA refinance, homeowners must have the following:

  • Your current mortgage must be FHA backed and originally closed as a FHA loan. It does not matter who your original mortgage company was, or who you currently make your payment to.
  • You must have made on-time loan payments for the past 12 months.
  • Your FICO credit score has to be at least 620 or higher.
  • You cannot have refinanced within the past 210 days.

Mortgage interest rates are still low in 2015, and should remain low into 2016.  If you are a Florida or Georgia homeowner and meet these FHA streamline guidelines , you can reach out to FHA Mortgage Source today by calling ph: 904-302-6060,  or just visit www.FhaMortgageSource.com

In addition to various individual mortgage lender requirements, you need to meet the FHA “net tangible benefit” policy, which says that refinancing will either help you avoid future mortgage rate increases (refinancing from an adjustable rate mortgage to a fixed-rate loan will satisfy this) or will reduce your total monthly payment – including principal, interest, and mortgage insurance – by at least 5%. The interest rate doesn’t have to drop by 5% – just your new mortgage payment.

FHA Streamline Benefits:

Lower Fees

Like any insurer, the FHA charges premiums to cover its liabilities. As a homeowner, you pay these premiums in the form of an upfront payment and recurring monthly fees. As of June 2012, a standard FHA refinance loan upfront premium is 1.75% of the loan amount. The monthly fees amount to 0.85% of the outstanding balance on an annual basis. The FHA altered the pricing only for streamline refinance loans used to replace FHA loans issued before March 31, 2009. You now have to pay only a 0.01 percent upfront premium and annual premiums that are equal to 0.55 percent of the loan amount. This means you could save several thousand dollars with a streamline refinance versus a standard FHA loan.

No Home Inspection or Appraisal

On a standard FHA or conventional refinance loan, your lender orders an appraisal to ensure that your home’s value exceeds the loan amount. With a streamline refinance mortgage, the lender uses the same appraisal that you used when you first financed the home. This means you can refinance even if your home’s value has plummeted since you bought it. It also means you avoid paying $425+ to cover the cost of a new home appraisal evaluation. In addition –  with a standard FHA loan, you have to get a home inspection and conduct any safety-related home repairs before you can close on your loan. With a streamline refinance loan, you have to remove lead paint from your home ( which most don’t have)  This speeds up the closing process. Some lenders may require you to conduct other necessary maintenance on your home, but any such requirements are required by the mortgage company rather than the FHA.

Fast Processing Time

From the time a mortgage company orders an appraisal, it normally takes 10 days before the appraiser finishes the report. Since you don’t have to wait on a new appraisal, FHA streamline refinance loans are much quicker to process. Additionally, the FHA often times doesn’t require the lender to check your credit report or to verify your income. Reduced paperwork means a faster turnaround time, although your lender does have the right to check this information to see if you meet its own eligibility guidelines. FHA streamlines  often close in as little as three weeks.

Reduced Payments

FHA streamline refinance loans offer you a way to lower your housing expenses. You can only refinance a fixed-rate FHA loan with a streamline refinance mortgage if the new loan means a reduction in your monthly principal and interest payments. The only way your payments can increase is if you refinance from an adjustable-rate loan (ARM) to a secure fixed rate 15 or 30 yr mortgage. Either way you benefit because either you have a lower payment or you escape from the uncertainty surrounding adjustable rates. With other types of refinance loans, fees could cause your payment to rise.

Please call us 7 days a week at ph: 904-302-6060,  or visit our FHA Refinance page for more information.

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Shopping for the lowest interest rate

Shopping for the lowest mortgage rateShopping for the lowest interest rate can be a challenge. Many different variables comes in the play in determining what interest rate a loan applicant will receive.  Listed below are some tips and things to remember when shopping for a mortgage. USDA Mortgage Source is Florida + Georgia’s local Rural Housing loan specialist.   If you have questions,  just submit the short Info Request Form on the right side of this page for quick service. Mobile phone users can find the Info Request Form here.  You can also call us at  ph: 904-302-6060

  • The advertised mortgage rate likely include added points

You know those mortgage rates you see on TV, read in the news paper or view online. Well, most of the time they require you to pay mortgage points. So if your loan amount is $200,0000 and the rate is 3.75% with 1 point, you have to pay $2,000 in added costs to get that rate. In addition, there may also be other additional lender fees on top of that. Many lenders use this trick to get their phone to ring, just to inform you later your closing costs will be thousands higher. Read the fine print, be sure to compare not only rate, but also lender fees.

  • The lowest mortgage rate is not always the best.

Most mortgage shoppers are probably looking for the lowest interest rate, but at what cost? As noted above, the lowest rate may have large fees or require discount points, which will push the APR higher and make the effective rate less desirable. Many first time buyers have limited funds to begin with and can’t afford to pay added discount points, etc.  However, it may make sense in the long run for some borrowers to pay points. Any trained loan specialist can show you the numbers to see if it makes sense.  Be sure you know exactly what is being charged for the rate provided to accurately determine if it’s a fair deal.

  • Compare different mortgage programs.

Low interest rates are NOT everything, each loan program may have different variables that can make one a better choice.  Example –  Let’s say home buyer Brian is looking to get a new mortgage, he is trying to decide between the USDA and FHA mortgage.  Brian ends up choosing the FHA mortgage because the interest rate is a little lower and he thinks it’s a better deal.  What Brian later discovers is the FHA loan monthly mortgage insurance costs (MI) is nearly 2 times higher when compared to the USDA loan. So even with a slightly lower interest rate, the FHA mortgage PMI much more each month. Financially speaking, the USDA mortgage would have been a much better choice for Brian.  In addition, he can save his money as since USDA is 100% financing and doesn’t require a down payment.

  • Check your credit score

Fix any credit issues before starting the mortgage approval process. Understand that shopping around may require multiple credit inquires, which is ok if done within 30 days. Try not to apply for any other types of loans before or while shopping for a mortgage. The last thing you want is for a senseless credit card application to ruin your chances of getting approved. Remember, the interest rate you receive is tied to your credit score. Higher credit score means less risk for lenders, which in turn mean lower interest rate for you. Example: a borrower with a 740 credit score will likely receive an interest rate of 0.5% lower when compared to borrower with a 630 credit score.

  • Have patience

Purchasing a home is a big step, especially for first time owners.  Don’t feel pressure from realtors or anyone else to make quick decisions.  Take your time, do your due diligence and consult with people you know and trust.  Don’t ever feel obligated to work with someone, especially if they’re pushy.

  • Stay local

Purchasing a home in Florida? It’s a good idea to deal with a Florida lender.  There are many reasons for this, mainly your local loan officer will have a better working knowledge of the area.  In addition, closing costs and government fees will vary from state to state – your local mortgage company will understand this.  If you are considering a specialty mortgage, like a USDA loan, be sure your lender has experience with the program.  Just because they “offer” a given program doesn’t mean they fully understand it.  Ask the loan specialist if they have closed any USDA loans? Purchasing a home is big deal, don’t be afraid to ask questions.

USDA Mortgage Source specializes in USDA Rural Housing loans in Fla & GA.  Contact us at 904-302-6060 or all the program details.

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Arcadia, Sebring First Time Buyers

Arcadia, Sebring First Time BuyersFirst time buyers around Arcadia and Sebring can still purchase a home with NO money down!  The USDA 502 Guarantee program is available in ALL of Desoto, Hardee, Highlands and even parts of south east Manatee County.  The USDA mortgage is perfect for Arcadia, Sebring First Time Buyers that are tired of renting but don’t have the huge savings needed by most loan program.  Myakka City, Bowling Green, Sun City, Zolfo Springs, Wauchula, Sebring, Avon Park, among many other locations in the area are 100% approved USDA eligible.

The USDA RD program offers 100% home financing in select rural (less populated) locations – all in an effort to encourage expansion of Florida’s rural areas. The USDA Rural Housing loan is offered by approved brokers, banks and lenders and backed by the federal government.  Any home buyers that decides to purchase a home in these locations can apply. A few things below to denote:

  • The USDA mortgage program has income limits in place – depending on the size of the household and county.  See the current USDA income limits here. If you are over the income limit, please contact us to discuss alternative options.
  • The home a buyer decides to purchase must be located in a USDA eligible location.   Hardee, Desoto, and Highlands county are 100% approved areas.  Contact us if you need help finding a USDA approved home in your area.
  • Buyers can purchase any single family home – the property doesn’t need to meet any special requirements. Only basic HUD standards ( safety, structural, roof) that apply with all government home loans. If the home is in basic sound condition (move in ready) it should be fine.
  • If you are already pre approved for the FHA mortgage, you own it to yourself to also look at USDA. Did you know the USDA loan mortgage insurance costs is almost 40% less than FHA? This can save some buyers over $100 per month on their mortgage payments.
  • No tedious obstacles, education or grant requirements needed to get a loan pre approved. Contact us and get approved for 100% financing in minutes. If you want to get started,  just submit the short Info Request Form on the right side of this page. Mobile phone users can find the Info Request Form here.  You can also call us 7 days a week at  ph: 904-302-6060

USDA Mortgage Source is Florida’s leader in 100% home financing, specializes in USDA loans. We service all of Fla & GA including –   MANATEE county – Anna Maria, Bradenton, Myakka City, Palmetto and Parrish.  DESOTO county –  Arcadia, Brownville, Lake Suzy, Nocatee. HARDEE County –  Bowling Green, Ona, Wauchula and Zolfo Springs. Highlands County: Avon Park, Lake Placid, Sebring FL

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September 2015 Interest Rates

September 2015 Loan RatesSeptember 2015 Interest Rates are starting the month lower when compared to last month. Mortgage interest rates across the board ( USDA Rural Development, FHA, VA home loans) are about .25% lower in Florida and Georgia.  Last month was pretty sour for the stock markets, in fact it was the worse month in three years. The stock market is again following the direction from the Chinese markets. China’s government has decided that it will not continue its stock purchases as a tool to help support their stock market. Rather, they plan to go after those they believe to be causing the recent volatility as a solution to gain market stability. News of this caused their markets to fall, which has spilled over to the US markets this morning.

Many economists feel that the volatility in our financial markets is a healthy reset and one that is long overdue. Our economy will soon need to learn how to operate in an increasing interest rate environment, which it has not faced in nearly 10 years. In addition, there is much debate about whether the Federal Reserve will raise short term interest rates at their next meeting on the 17th.  What seemed to be a sure thing to many has become an unknown in the wake of the recent global stock market drop. Many believe that it is too soon to raise rates because our financial markets lack the strength to withstand an additional blow that increasing rates would create.  Mortgage bonds remain stuck in the same range. Unless bonds show the strength to make a break higher, we will maintain our locking recommendation for closings in the 45 days.

Home buyers should remember that USDA mortgage interest rates are especially volatile right now and change daily. Florida and Georgia home buyers should contact us for an up to date September 2015 interest rates quote –  just submit the short Info Request Form on the right side of this page. Mobile phone users can find the Info Request Form here.  You can also call us 7 days a week at  ph: 904-302-6060

USDA home buyers should also note the one-time USDA Guarantee fee (required on all government mortgages) will be increasing Oct 1st for the USDA Rural Housing program. The USDA guarantee fee is currently 2.0% – and will increase to 2.75%. The change applies to both USDA purchase and refinance loans. USDA loans are taking around 45 days to close in September. As a result many banks, lenders and brokers will start to apply the higher 2.75% guarantee fee starting the first week of September.

USDA Mortgage Source is Florida and GA’s primary 100% home loan resource. First time buyers and existing home owners should contact us today at Ph: 904-302-6060 to learn about all pre-approval and eligibility requirements.


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