Pretty much all Florida Government home loans today – FHA, USDA Rural Housing and VA – require the similar things when getting pre approved. Here are several key points to think about when deciding to apply for a Government home loan. First time home buyers will find this information especially useful, please contact us below with any questions.
In most cases, a 620 FICO score is necessary to get approved for the USDA government home mortgages today. Other programs like FHA and VA loans can be done with possibly lower scores down to 600, especially with larger down payments. In addition do not forget that a credit score requirement DOES NOT guarantee loan approval, just about all banks and lenders have even more waiting conditions concerning home buyers having any previous bankruptcy short sale or property foreclosures. Even more time is also required for USDA Rural loans. A clean one-year monthly payment history on any other consumer credit lines is crucial to look after.
Your income should be consistent and documentable in 2016. The times of “stated” type income or no documentation loans are long gone. Showing income properly will often present an issue with self-employed or 1099 workers, particularly those who have not been independently employed for not less than two years. Finance companies and banks frequently wish to see a 2-year employment history. Minor interruptions in a borrower’s job history might be okay, just as long the gap isn’t a long time, or unexplained. Examples would be a bad illness, maternity leave, etc. Recent college graduates enter the workforce are usually are exempt from the 2-year employment regulation.
100% Rural Housing USDA Mortgage:
USDA loans are available to just about any home buyer wishing to buy a dwelling in a rural approved location. 100% financing, low fix rate term and easy approval makes this an excellent choice for eligible home buyers. But don’t automatically think “way out in the country” Many locations in Fla are still approved and “zoned” for USDA. Even some suburban communities around Jacksonville, Tampa, Orlando, Gainesville, Ocala, etc. Click here for the USDA eligibility map. USDA loans do have household income limits according to the number of family members in the home, county, etc. Read all the USDA FAQ’s here. The link is loaded with tons of helpful information.
Other Home Financing Options in Fla:
FHA Home Loans
FHA financing is the most popular government back loan program. FHA home mortgages have to have a minimum 3.5% down-payment, there are no net income limits, regulations or property location disadvantages. FHA also permits the home seller to pay buyers closing costs. Contact us below learn all about FHA mortgage loan standards in Florida.
VA Home mortgages
Offered to all eligible prior and existing armed forces members. VA is one of only two home loans that allows 100% financing.
- VA 100% financing home purchases: Most conventional lenders require at least 10% down payment which is not possible for many Veterans and military families. FHA requires a 3.5% down payment and has very high monthly mortgage insurance. Because a VA Mortgage is guaranteed to the lender (by Veterans Administration) they do not require a down payment.
- VA loans do not have mortgage insurance (PMI): Even with $0 down payment, a VA Mortgage does not have mortgage insurance (PMI) as part of the monthly payment. Conventional programs with less than 20% down and FHA both have expensive mortgage insurance that can cost buyers several hundred dollars every month. No PMI is a huge advantage of VA loans.
- VA loans have very low interest rates: Because VA Mortgages are guaranteed by the Department of Veterans Affairs, the risk level associated with default is much lower. As a result, the interest rates are usually lower than a conventional program with less than 20% down. Like a VA loan, FHA and USDA loan programs are also backed by the government and have similar interest rates.
- Easy qualifying criteria: VA Mortgage guidelines are more flexible than many other loan programs. The VA mortgage is guaranteed by the government and most lenders have lower credit requirements, making them easier to qualify. The current minimum credit score requirement for most lenders is 620.
Homeowners that presently have a VA, USDA and FHA loan can also look into the wide range of streamline loan refinancing alternatives available at this time. Interest rates are currently the lowest they have been all year. All these products allow the homeowners to re-finance REGARDLESS of the mortgage loan to value. If you now have a USDA Mortgage loan, contact us to find out more about the USDA Pilot refinance program. Homeowners that have a VA loan can learn more about the VA IRRRL Refinance here. Homeowners with an FHA can learn more about the FHA Streamline here.
Have a question? Contact us today at ph: 800-743-7556 – we serve home buyers nationally. Also feel free to submit the Info Request Form located on this page for quick service.
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