florida mortgage broker lenders considers your credit worthiness when choosing whether to extend a loan and how much of an interest rate you will pay. Your credit worthiness comes down to three things: your credit history, your income and the loan-to-value ratio.
Florida Credit history
Credit bureaus collect information about whether you pay your bills on time. They compile this information into a file called a credit report, and then boil all this down to a number between about 300 and 850. That number is your credit score, after Fair Isaac Corp., the company that pioneered credit scoring. Most lenders use the middle of the three scores. So for example if you had a 600, 620, and 640 score set… the lender would use the middle score or 620 in this example, as your qualifying score.
Income
florida fha loans want to know how much you make and how long you've been at your job, as well as how long you have been working in your particular field. They will look at your total debt-to-income ratio: How much of your monthly income goes toward paying the mortgage and other obligations, including the payments on the equity debt for which you are applying. Most lenders want to keep that ratio under 36 percent, but many programs such as FHA and non conventional loans will go to 55% or higher with compensating factors.
Be prepared to show your lender proofs of income and other earnings statements, or get ready to be turned down or pay a higher interest rate.
LTV
This is the ratio between what you owe on your house and what its worth. If your house is worth $100,000 and you still owe $80,000, your loan-to-value ratio is 80 percent, because $80,000 is 80 percent of $100,000. When you bought the house, calculating the LTV was straightforward: the mortgage amount divided by the home's price.
It's more complex when you get a home equity product, because the home's value probably has changed since you bought it. The lender will get an estimate of the home's current fair market value. Then it will add the current mortgage balance to the size of the equity loan or credit line that you want, and divide that by the home's current value. That results in the new Loan to value ratio ratio. Traditionally, equity lenders want to keep your total Loan to value ratio at 80 percent or less.
If you have been considering refinancing a home we urge you to call us or fill out our quick online application so that we can help you get qualified as quickly as possible. http://www.fivestarsmortgage.com
Showing posts with label florida mortgage poll. Show all posts
Showing posts with label florida mortgage poll. Show all posts
Sunday, June 7, 2009
Wednesday, May 20, 2009
Downpayment Assitance on FHA Loans using 8000 tax credit
In what could be a huge boost to the housing market, HUD Secretary Shaun Donovan’s has decided to allow florida mortgage company to use the $8,000 home purchase credit to help cover their down payment and closing costs on Florida FHA mortgage loans.
One of the biggest challenges for first time home buyer is saving up enough money for a downpayment on their home. The FHA program in particular requires the borrower to come to closing with 3.5% of the purchase price as their downpayment. Often borrowers have to borrow these funds from work to supply home buyers with short-term or “bridge loans” of up to 10% of the purchase price, up to the amount of the $8,000 tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920.
Previously, the home buyer would have been unable to access the home purchase credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.
The next step is to see how florida fha-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lending institutions to act promptly to put these provisions into place.
To qualify for the first time home buyer credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
Information about the details of exactly how this program will be rolled out are still forthcoming. We do know that there are many states such as Missouri that are already offering some type of bridge loan program utilizing the first time home buyer credit for down payment assistance.
For further information on the $8,000 first time homebuyer home purchase credit and how you can use it to help you get an FHA financed loan with no money down please either call us immediately at 800-871-2636 or apply online at http://www.fivestarsmortgage.com and a representative will go over your information with you in detail.
One of the biggest challenges for first time home buyer is saving up enough money for a downpayment on their home. The FHA program in particular requires the borrower to come to closing with 3.5% of the purchase price as their downpayment. Often borrowers have to borrow these funds from work to supply home buyers with short-term or “bridge loans” of up to 10% of the purchase price, up to the amount of the $8,000 tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920.
Previously, the home buyer would have been unable to access the home purchase credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS. Until then they borrowed the funds from family and friends with the understanding that they would be able to pay it back after they filed their income taxes.
The next step is to see how florida fha-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lending institutions to act promptly to put these provisions into place.
To qualify for the first time home buyer credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
Information about the details of exactly how this program will be rolled out are still forthcoming. We do know that there are many states such as Missouri that are already offering some type of bridge loan program utilizing the first time home buyer credit for down payment assistance.
For further information on the $8,000 first time homebuyer home purchase credit and how you can use it to help you get an FHA financed loan with no money down please either call us immediately at 800-871-2636 or apply online at http://www.fivestarsmortgage.com and a representative will go over your information with you in detail.
Sunday, January 11, 2009
Weekly Poll Results for January 11th
The topic of last week's poll was "Will 2009 be Better or Worse than 2008?"
The results of the poll were:
The results of the poll were:
- Improved - 80%
- Worse - 20%
While our poll is far from scientific we think it is a good sign that people view this year as a potential turn around year for the economy. The media would like you to believe it will go on forever and ever, but like our readers... we remain optimistic!
Mortgage rates fell again through the end of last week. This will continue as we have said until we reach the low 4% range at which time the market will be ripe for a bottom and the turnaround can begin.
Thank you to everyone that participated in this weeks poll. We just wish we could get people to leave a comment with their info so we can start interviewing the respondents!
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