Florida Mortgage : Learning Center

If you have been thinking about refinancing your current FL VA home loan to a lower fixed rate; now may be the time.  Interest rates are expected to slowly increase from today’s available lower VA fixed rates.  There are huge advantages (less hoops to jump through) many FL Veterans enjoy when considering to streamline refinance their VA home loan with IRRRL.

IRRRL stands for Interest  Rate Reduction Refinance Loan and many refer to it as a streamlined refinance program for VA home loans.  The biggest advantage is there is no requirement for an appraisal.  Although in today’s declined market situation, many lenders or banks may ask for a drive-by appraisal to determine equity position. 

Typically credit reports are streamlined as well; reviewing only the previous 12 months of mortgage payment history.  Each lender is different so remember to ask.  Remember too, there are no income requirements – so income qualifying is not an issue with a VA IRRRL loan.

The VA funding fee is reduced to just 0.50% and can be paid in cash or rolled into the new VA mortgage loan amount.  And even though you cannot receive more than $500 as cash-out; everything else is typically rolled into the loan amount allowing the Veteran not to bring any cash to closing. 

For more information on VA IRRRL streamlined refinance loans please call your experience FL VA mortgage professional or contact us today.

Searching  for a great deal on your first or next FL home mortgage?  How about buying your next home with less than is required for an FHA mortgage and without the need for any PMI, private mortgage insurance?  Less You need to consider buying your next home from those listed on the HomePath website at www.homepath.com.

Fannie Mae wants to unload these homes without having FL home buyers incurring usual hassles like appraisal inspections- because appraisals are not even required.  Also, there is no qualifying for PMI (with respect to credit scores) as with most conventional loans; or paying an upfront mortgage insurance premium and monthly PMI, as associated with FL FHA mortgages.  In fact, there is no mortgage insurance, at all. 

Thinking about purchasing  a second home or even an investment property?  Go ahead.  Guidelines allow for down payments for primary homes as little as 3%; second homes or FL vacation homes require only require a 10% down payment.  Even investment properties can be obtained with a 10% down payment and no private mortgage insurance.  What a deal!

Lest we forget – while negotiating the contract price with your favorite FL Realtor, remember Sellers can contribute up to 6% for primary homes with only a 3% down payment.  For down payments of 25%, second home and primary home purchase can have contributions of up to 9%!  Structuring the initial contract is very important because you can save thousands in out-of-pocket expenses and/or long term mortgage interest costs.

Whether searching in Brevard County, Seminole County, Orange County or almost any other FL County; more information on your next FL home may be available right now by contacting your FL mortgage professionalor visiting HomePath.

Word on the street is that fixed interest rates for home buying shouldn’t start significantly increasing for the next 6 months.  That’s great news considering interest rates are still available in the very low 5% range for qualified buyers seeking a FL FHA loan, VA home loan or Fannie Mae conventional  mortgage; and with no discount points.  Whether you are buying your next home as a seasoned investor or FL first time home buyer; your FL Realtor will amaze you with current reduced home prices.  Over the weekend a client called about their desire to purchase their dream home in Key West, FL .  Built in 2007, their 1,880 square foot , 4/2 vacation home was listed under $50,000!  Even Condominiums in Cocoa Beach, FL are at ridiculous reduced prices and many second home or vacation home buyers are taking advantage.  But keep this in mind. Although interest rates are down and home prices are down everywhere in FL; so too are the qualifying debt ratios for your FL  mortgage approval.

When considering a new home loan, FL mortgage professionals must review and determine qualifying debt ratios.  This is done by dividing the home buyers monthly debts (credit cards, auto, boat, student loans) by their gross monthly income.  Fannie Mae has reduced their debt ratio maximum to 50%.  So, for example, if a home buyer has a million dollars in the bank, and credit scores over 800 (superb), and puts 20% towards a down payment, but their debt ratio is 56%; there is a very good chance they will not obtain an approval.  The same holds true for many FHA first time home buyers; except the qualifying debt ratios may be as low as 45%. 

There are ways to achieve a lower debt ratio and your FL mortgage professional is the first one who may have the answers.  Don’t lose your next home by not talking to someone with experience, first.  The mortgage underwriting squeeze does need to ease a bit.  For now, one can only hope that when interest rates start climbing and home price begin increasing as homes appreciate; that home buyers remember to begin their FL home search with speaking to an experienced FL mortgage professional.  Got a question with your next home buyer?  Contact me at info@beechtreemortgage.com anytime.

Many FL home buyers are calling to simply ask what current credit score requirements are for Fannie Mae, FHA or other types of home loan financing.  Generally speaking, in today’s restrictive lending environment, FL home buyers need to have established a good credit history usually evidenced with favorable credit scores.  There are exceptions to today’s FL mortgage tighter qualifying credit scores and Veterans are included.

When a Veteran seeks to purchase their next or first FL home mortgage; they can enjoy a little breathing room when it comes to credit score quailfying.  As long as the amouont borrowed is $417,000 or less; there may not be a credit score minimm requirement.  Good news for Veterans who may have run into making slower credit card payments due to a temporary job loss or unexpected circumstances. 

Remember whether a FL first time home buyer or moving up to a larger home; qualified US Veterans have advantages with a VA Home Loan over other FL mortgage options, including:

• Save more money with no down payment requirement for loan amounts up $417k (Monroe County allows up to $425k)
• Enjoy lower mortgage payments with no monthly mortgage insurance
• Easier to qualify with less restrictive credit score requirements (Bankruptcies under 2 years may be considered)
• Save even more as you could receive up to 4% of your contract price towards closing costs, from allowable contributors

For more information with your next FL VA home loan, feel free to contact me directly at info@beechtreemortgage.com.