Florida Mortgage : Learning Center

The home buyer tax credit is history for many FL home buyers still searching for their first or next FL home.  We were all hoping for some sort of extension which never came.  That is, unless you are a qualified US Veteran serving overseas.

Members of our US armed forces as well as number of Federal employees on official extended duty (any period of extended duty outside of the US, for at least 90 days, between the periods starting December 31st, 2008 and ending May 30th, 2010) have an extra 12 months to purchase their next FL home and still qualify for the $8,000 tax credit that has expired for others.

The extension allows Veterans or qualified Federal employees to secure a binding contract on or before April 30th, 2011 and close on their new FL home by June 20th, 2011.  Veterans do enjoy advantages when using their VA Entitlement towards a FL VA home loan.  But keep in mind, other mortgage programs available include; FHA home loans, VA Jumbo loans, Fannie Mae conventional programs, etc.

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.

When a first time home buyer chooses a Realtor and begins the search for their new dream home; most are hoping to keep as much of their savings to furnish or spruce up their home.  There are a few mortgage programs with low down payment requirements, and scenario considerations as follows.

The best mortgage program available with no down payment requirement, is a VA home loan.  Our hero Veterans  may qualify for their first home without the need of any down payment.  In fact, the seller can even contribute up to 4% towards the Veterans closing costs and prepaid interest, property taxes and homeowners insurance.  With little or no out of pocket expense, Veterans can keep more of their savings and earn interest instead of paying interest.

Another practical first time home buyer program is the use of an FHA mortgage loan.  FHA mortgages allow first time buyers to put as little as 3.5% towards a down payment.  Keep in mind, HUD is considering changing the 3.5% to 5% soon – so get your Realtor and call your FL Mortgage Professional to secure a contract soon.  Also, sellers can contribute up to 6% towards the buyers closing costs, prepaid interest, property taxes and homeowners insurance.  At a loan-to-value of 96.5%, FHA has proven to be the most popular mortgage loan of first time home buyers.

Although there are more  mortgage programs with little or no down payments; the VA home loan and FHA mortgage loan seem to serve first time buyers the best.  For more information on these mortgage loans and more please contact your favorite FL Mortgage Professional.

We have all seen them.  Advertised FL mortgage fixed interest rates that seem too low or too good to be true.  Whether you are looking at FL FHA mortgage rates, FL VA home loan rates or conventional loan rates; some rate seem much lower than any others.  Some are printed in the local newspaper and can be easily compared to other local lender rates.  Others are advertised on the television with promotions like; this sale ends on November 30; or fixed rates under 4.5% (currently?).  Thousands of mortgage lenders or banks advertise their mortgage rates everyday on the Internet.  And some of those rates are awesome – or are they?

The truth about advertising interest rates for home buyers to compare is; not everyone is advertising within the same parameters.  Many newspaper ads come with a fine printed disclaimer which states the interest rates advertised may include a discount point of 1% or an origination fee of 1%.  Television ads are the same – the devil is in the details – or very fine print.  If you have a large screen and can pause the ad; try reading the disclaimer about their interest rate.  One very well known company claims that the rate displayed includes 2 discount points!  Wow – that’s expensive.  And the Internet marketers for mortgage rates always have a small link located somewhere on their interest rate page.  That link will provide details like additional discount points, additional lender fees, and more.  The rate all of a sudden doesn’t look that attractive.

Yes – in today’s FL mortgage markets you must either read the fine newspaper print; purchase a larger television so you can see the details; or spend hours online searching for the truth about that low fixed mortgage rate.  Or – you can call an experienced and trusted Mortgage Professional; who will provide an upfront Good Faith Estimate detailing everything for fair comparison.  Remember, if it’s too low, look for the truth or pick up the phone, inquire and ask for an upfront Good Faith Estimate.  If you have any FL mortgage question related to interest rates please email or call 321-987-9876.

When FL Realtors write VA home loan contracts for first time home buying Veterans – they are always concerned with the “seller” fees.  How much does the seller have to pay because the buyer is a Veteran?  Is that fair?

One of the many benefits of being a United States Veteran and purchasing a new home, is not having to pay any junk fee or bank fees usually associated with a FL fixed rate mortgage.  Over the years many have deduced that since a Veteran buyer cannot pay for certain fees, that those fees fall on the responsibility of the seller.  This is simply not true.  The rules are that the Veteran cannot pay certain bank fees. 

There are usually 2 ways to cover the costs of these fees when FL Realtors are writing VA home loan contracts.  One is to, of course, charge the seller.  Everyone knows this method – and its results are unfortunate.  Veterans can’t simply enjoy their earned benefits; but now have to impress additional fees on would-be sellers. 

Another is to have the Lender or bank charge an origination fee shown on their VA good faith estimate.  This is a fee of up to 1%, of the loan amount, that covers the costs of underwriting, processing or document preparation – which would normally be charged on a conventional type mortgage.  No true savings for Veterans with this method.

There is a better way.  Find a bank or lender that will simply not charge the Veteran, or the seller.  The bottom line is the bank would make a little less by covering Veteran costs; but the Veteran wins by not having to shop for a seller willing to give up something more.

This is a way to give back to Veterans who certainly have earned their benefits using the VA home loan.  Realtors writing contracts for their Veteran clients can write without having to calculate additional seller paid fees.  For more information on this; ask your FL mortgage professional for a VA good faith estimate, upfront.

Low down payment mortgages still exist in today’s tighter lending environment.  Once  I recognize a first time home buyer; 3 current FL mortgage programs come to mind.  They are USDA Rural Housing, FL VA home loans, and of course, FL FHA first time home buyers.

Mortgage professionals must inquire whether a first time home buyer is a Veteran or not before beginning to determine a FL mortgage solution.  A qualified Veteran seeking a VA home loan will enjoy no down payments, no monthly mortgage insurance, and seller contributions ( up to 4%) towards the Veterans closing costs and prepaid taxes, insurances and interest.

If the first time buyer is not a Veteran, then determining where the first time home buyer is purchasing should follow.  The USDA Rural Housing program allows 100% mortgage financing but is limited in geographic locale.  Your FL mortgage professional should be able to provide more information with this FL mortgage loan which allows no down payments, no private mortgage insurance and seller contributions of up to 6%.  In fact, the closing costs can be rolled into the loan amount if needed; saving you more money out of pocket.

The next best and most popular FL mortgage program geared for first time home buyers is the FHA home loan.  FHA allows a small 3.5% down payment, seller contributions of up to 6% towards the buyers closing costs and prepaids, and all of this can be a gift from a relative or family member. 

Today’s FL mortgage markets are much tighter than previous years; however, there are still several options for FL first time home buyers to consider while purchasing their first home.  Experience is the difference between spending too much money with the wrong FL mortgage loan.  Get it right – ask for experience.

Just a quick thought.  Veterans have the ability to avoid all of the HVCC appraisal mess (see earlier blogs to learn more about that) which allows inexperienced appraisers to establish your new home’s value.  Florida mortgages are provided to qualified Veterans in a smooth and seamless transaction.  Here are some of the benefits Florida Veterans enjoy:

• Saving more money as their is no down payment requirement for a VA home loan up to $417,000.  
• Enjoy lower payments because a Florida VA home loan has no monthly private mortgage insurance.    
• Get approved today.  Credit guidelines are more flexible than conventional Florida mortgages.
• You’ll love lower mortgage closing costs too with no Lender junk fees at all. 
• Refinance with streamlined IRRRL without having to obtain an appraisal save you time and money.
• Lower your Jumbo Payment even if you owe more than $417,000 with a VA Jumbo mortgage loan. 

Veterans looking to purchase their new Florida dream home in this buyer’s market can truly win with a VA Home Loan.  Call our office at 888.399.0520 and ask for Stephen Thaggard, that’s me.  I want to show you all of the advantages you deserve when purchasing your home with your VA Entitlement.

As a Florida first time home buyer down little or no down payment options are frequently requested.  Florida mortgage programs available to any qualified first time home buyer are prevalent.  Consider the following mortgage loan avenues:

Inquire about an FHA home loan.  The down payments are as little as 3.5% of the purchase amount.  Part or all of the down payment can be a gift form a relative.  And an FHA mortgage allows more flexibility with less than perfect credit scores.

Veterans should ask for VA home loan details.  Veterans looking to purchase their first home in Florida can purchase without no down payment at all!.  There is no monthly private mortgage insurance requirement and no prepayment penalty.  Also, sellers can contribute up to 4% of the purchase price towards the Veterans closing costs.  Veterans seeking to purchase a larger and more expensive home should inquire about a Florida VA Jumbo home loan.

Another option is the USDA home loan.  This program is available with no down payment, however, is geographically limited in availability.  Ask your Florida mortgage professional to review areas you are looking to purchase and you too may take advantage of this great program.  If sellers wont contribute towards buyers costs, this program allows you to roll them into the loan amount. 

All of the Florida first time program listed above do require income, asset and credit approval.  Make sure you gather this information together and call your Florida mortgage professional today to see how you can purchase your first home here in Florida.

Most first time home buyers desire lower down payment, if any, Florida mortgage programs.  So the first thing we ask here at BeechTree Mortgage, is if the home buyer is a US Veteran.  If so, they win with the best first time home buyer program around.

Veterans seeking to purchase their first Florida home should take advantage of their VA Entitlement as it allows them borrow up to $417,000 without having to use savings towards any down payment.  There is no prepayment penalty of course; and “sellers” can contribute up  to 4% towards the Veterans closing costs and prepaid interest or escrows.  This can save Florida home buying Veterans even more when obtaining their Florida VA mortgage.

The bonus feature with a Florida VA home loan is that there is no monthly private mortgage insurance; keeping the monthly payment lower than other programs.  To see if you qualify for a VA home loan, call our office at 888.399.0520 and ask for one of our experienced VA Florida Mortgage Professionals.  Get your upfront VA Good Faith Estimate and see just how low our fixed interest rates are for qualified Veteran first time home buyers.

Interest rates have dropped againfor those Florida Veterans who may want to lower their fixed VA loan rate.  Many Veterans that already have an existing VA home loan should consider using the VA interest rate reduction refinance loan or the IRRRL.  This type of refinance usually requires no appraisal and no income qualifying which makes qualifying for a lower fixed VA rate simple.

Another type of VA refinance is the cash-out type loan.  Today, qualified Veterans can elect to refinance their current Florida mortgage and pay-off additional debts.  The maximum amount allowed is now 100% of the homes current value.  This can help many Veterans by lowering their monthly payments with today’s 30 year fixed VA mortgage.

For more information regarding your VA Florida mortgage opportunities; contact our VA Mortgage Professionals at 888.399.0520.