Why use FHA to purchase a Florida home?

Why use FHA to purchase a Florida home?Difficult to get, a mortgage commitment letter is a
For the Florida FHA mortgage applicant Using the FHAlegally binding document that commits a lender to
mortgage loan program to attain FHA mortgagemake a specific loan under very specific conditions.
financing makes better sense than any other FloridaThe only way to void a mortgage commitment is for it
home loan program. The FHA mortgage and hometo either expire, or the borrowers financial situation
loan program has to offer the  average Floridachanges to such an extent that the borrower no
 homeowner and home buyer.longer meets the program guidelines used to issue the
 The reality is, there are a wide range of FHAoriginal mortgage commitment letter.
mortgage loans available to qualified Florida mortgageWhat do I need to apply for a FHA mortgage?
applicants. And the real truth is, these FHA home loanWhen applying for a mortgage, you will want to gather
programs don't even consider your credit score. Manyup all of financial documents that will support your
Florida mortgage applicants find this very difficult toapplication. Typical things each borrower will be
understand, but it is under FHA/HUD guidelines creditrequired to have copies of include;
scores cannot be considered during the underwriting- Driver License and Social Security Card
process, only payment history. This gives FHA home- 90 days of bank statement for all checking and
loan applicants who might not otherwise have thesavings accounts
ability to secure a low fixed FHA interest rate- For any financial accounts that report quarterly (401k
mortgage ample opportunity to succeed in purchasingetc) your last quarterly statement
a new Florida home. It is one of the biggest benefits- 30 days of your most recent pay stub
that many FHA mortgage offer to people just like you.- Your last two years of tax returns including all W2's
Want to learn more? Call 954-667-9110 or Visit us ator 1099's
www.  Did you know the FHA home loan programThese are the core fundamental documents you'll
typically only requires a 3% down payment and FHAneed to have, and when making copies, all pages
allows the seller to pay up to 6% concessionsinclude even blank pages which are numbered. The
towards your closing costs and prepaid taxes andbalance of documents for those who need to apply
insurance? You wont find this with anyother mortgagefor a mortgage will be based upon your individual
programcircumstances. These added documents include things
The FHA home loan programs vary; to learn more,like bankruptcy paperwork, child support paperwork,
simply select the FHA loan product type that interestssocial security benefits paperwork, existing mortgage
you and contact us for a pre approval on a FHApaperwork, existing creditor statements etc.
home loan in Florida.:If you need to apply for a mortgage, 1st Continental
Answers to FHA Mortgage QuestionsMortgage would be thrilled with the opportunity to help
Whether FHA Refinancing or Buying with FHA, Weyou along! Just give us a call today at 1-800-570-0448
Deliver Good Answers to Great Questions!or use our quick application to learn more.
 I need an FHA  mortgage. Why should I do businessWhat is the difference between afixed and adjustable
with you?rate mortgage?
We love the fact you've recognized you need aThe fundamental difference between a fixed rate
mortgage. 1st Continental Mortgage is a 14 year oldmortgage and adjustable rate mortgage really are
company licensed to lend in 17 states, to include;easily defined.
Alaska, California, Colorado, Florida, Montana, Indiana,A fixed rate mortgage has an Interest rate that will
Louisiana, Maryland, Minnesota, Mississippi, New Mexico,never change throughout the term of the loan.
North Carolina, North Dakota, Pennsylvania, SouthAn adjustable rate mortgage has an Interest rate that
Carolina, South Dakota, Tennessee and Texas.comes with periodic changes based upon pre-defined
So really, why work with us just because you believecriteria established within the original loan agreement.
"I need a mortgage"? Within every financial institution,Can I buy a house using a FHA Loan?
the quality of the service and counsel you receive isAbsolutely! As one of the largest FHA lenders in the
directly related to the quality of the individual you workstates we do business, we would love the opportunity
with. This fact remains whether you're working with ato assist you in buying a house using our FHA loan
big box lender, or a small town broker. With us, weprogram! Give us a call today at 1-800-570-0448 or
don't want to just give you a mortgage because youapply today using our hassle free no obligation quick
believe you need a home loan. We want to evaluateapplication!
your needs and see if a new FHA Mortgage really isHow much mortgage do I qualify forusing an FHA
the right decision for you.Loan?
We operate branches in multiple cities throughoutWith flexible FHA housing and debt ratios, the FHA
multiple states. We consistently provide a local smallinsured loan program can actually allow a home buyer
town relationship based service that is combined withor homeowner to qualify for financing a larger loan
real, big business capabilities. Finally, we work hard toamount than could be achieved through a comparable
ensure each of our representatives is well qualifiedtraditional conventional loan program. The front end
and well trained to understand the home loanhousing ratio allowance can range anywhere from 1%
requirements of every searcher that types "I need ato 5% above conventional financing based upon the
mortgage".income, credit quality and compensating factors of the
Interested in learning more? We are to! Lets learnborrower. To learn more, give us a call today at
about one another together. Give us a call today at1-800-570-0448 or use our quick application!
1-800-570-0448 or just use our fast and easy quickDoes the FHA loan impact how muchhouse I can
application to find out more.qualify to buy?
What is an FHA Home Loan?Yes and No. The FHA insured loan program offers
An FHA  home loan is a loan that is secured by aLoan Limits which are very comparable to those
residence. This includes property that is owneroffered via traditional conventional financing. Unlike
occupied and investment property. What propertytraditional financing, the FHA insured program does not
types are included? We're glad you asked! Propertyoffer "creative" financing programs that could
types that can be associated with a home loan includepotentially allow an unqualified borrower to purchase a
single family homes, condominiums, townhomes, duplexhome they really couldn't afford. The motto of the
units, tri-plex units (three apartments) and four-plexFHA insured program is "Disclosure" that not only
units (four apartments). We do hope this answercovers that of a lender, but that of a borrower. If you
thoroughly addressed your original question of "What iscannot disclose your income, then you cannot qualify
a home loan".for an FHA loan. To learn more, call us today at
What is a FHA Mortgage?1-800-570-0448.
While this question has multiple answers, for theHow do I qualify for a FHA home mortgageusing the
purpose of answering the "What is a mortgage"FHA program?
question illustrated here, a mortgage is basically aQualifying for a home mortgage using the FHA loan
pledge of your home made to a mortgage lender inprogram is traditionally much easier than the
the form of a lien which is filed with the local county.qualification process involved in comparable
Basically, you sign home loan documents which pledgeconventional Freddie/Fannie loan or Sub-Prime loan
the home as collateral for meeting the repaymentproduct. The benefits of the FHA insured loan program
terms as outlined in the loan documents. Theseare substantial and many, with the most important
documents are registered as a lien (mortgage) withbeing the security offered to borrowers and the
the county.expanded opportunities of homeownership that home
What is FHA Refinancing?buyers will receive Versus that offered by any other
FHA Refinancing a home is the process by which aproduct. To learn more about the FHA insured loan
borrowers seeks out a lender who will meet the termsprogram.
and conditions (rate, length of time, loan type) requiredWhat is the difference between a regularmortgage
by the borrower. The borrower signs new home loanand an FHA mortgage Loan?
documents which then satisfies the existing home loanAside from who establishes the underwriting
and mortgage. The new documents create a newparameters for the loan, the differences can involve
home loan which is secured by a new mortgage. Thisthe maximum loan amount, the types of programs
is all a refinance represents. The creation of a newavailable and the loan being insured by the FHA, the
loan and mortgage which settles an existing loan andbiggest difference is that far more people will qualify
mortgage.for an FHA insured loan than will qualify for a
What is an  FHA mortgage loan?comparable conventional mortgage. The program
FHA is a acronym for Federal Housing Administration.offers virtually the same rates of interest. To learn
The FHA was created by the U.S. Federalmore, give us a call at 1-800-570-0448 or use our
Government to be responsible for insuring loans madequick application to have a mortgage originator contact
by FHA approved lenders on single family homes,you at your earliest convenience.
multi-family homes and manufactured homes. FHADo you have to improve your credit scoreto get a
does not make loans or lending decisions, rather, theybetter rate with FHA?
only manage the mortgage insurance premiums paidNo. Under FHA guidelines, underwriters cannot use a
by borrowers of FHA insured properties. Only FHAcredit score as a basis for qualifying whether a
approved lenders can make loans insured by FHA.borrower can be approved or declined for an FHA
What is FHA/HUD?loan.
HUD is the acronym for the U.S. Department ofWhat is the importance of credit whenyou apply for
Housing and Urban Development. A branch of thean FHA Loan?
Federal Government, HUD is responsible for increasingThe FHA loan program focuses on credit quality that is
homeownership, community development and accesstraditionally factored based upon the most recent 12
to affordable housing throughout the United States.month period. Underwriters are not overly concerned
Part of those responsibilities include the managementabout late payments which occurred 18, 24 or 36
of the FHA housing program in addition to regulatingmonths ago, though letters of explanation are required.
lending practices, rental practices, housing discriminationThey are concerned about whether the loan makes
etc.sense and you have addressed whatever issues may
What is Sub Prime?have arisen to create past credit problems.
Sub Prime is the term used to describe higher risk,I heard the FHA loan is only for 1st timebuyers, is that
non-conforming lending practices that are not utilizedtrue?
within the traditional Freddie/Fannie conventional lendingAbsolutely not true. The FHA loan program is designed
market. The underwriting of Sub Prime borrowers canfor everyone from single parents to individuals to
include combinations of traditionally unacceptablemultimillionaires. Your past home buying experience
borrower traits such as; Loan Amounts, Housingcould consist of owning 20 investment properties, 5
Ratios, Debt Ratios, Bad Credit Issues, Employmentprimary residence or a single condominium. It doesn't
History, Cash Reserves, Credit Scores, Bankruptcies,matter. If it's your primary residence; and the loan
Foreclosures, and Legal Status. A non-traditionalmeets the loan limits for your area; and the home
borrower can have any combination of issues whichmeets the quality standards designed to protect home
would prevent them from qualifying today for abuyers; you can get approved without having to be a
conventional low interest rate mortgage. Sub Primefirst time buyer.
loans involve higher risks to both the borrower and theMy FHA mortgage company says I should not 
investor. As a result, these loans charge much higherconsider the FHA program. Why should I  listen to you
than traditional Interest rates typically tied to anand not them?
adjustable interest rate. In the secondary mortgageWhile every situation is unique, most of the time when
investment market, these were an attractive buy duea mortgage company is telling a borrower not to look
to the return on investment. The loan products, whileat an FHA loan, it's because they are not a HUD
still available in a more limited capacity today, are notapproved FHA Lender. If this is the case, you are
the ideal vehicle to owning or refinancing a home.strongly encouraged to speak with a 1st Continental
What is an FHA mortgage Lender? Do I need aMortgage loan representative. Give us a call today at
Lender?1-800-570-0448 or use our quick application so we can
A Lender is a FHA mortgage company which cangive you an unbiased review of your situation. If you
lend its own money. The typical lender makes lendingfind the mortgage company is FHA approved, you can
decisions based upon the underwriting requirements ofstill call for a second opinion.
the buyer of a loan. Establishing rates and termsI want to improve my mortgage term.
based upon what the investor will pay for the loan toCan I refinance my FHA loan now?
create the profit the lender requires to keep theirThe FHA loan program offers three types of
doors open. In answer to question of do you need aRefinance options. The first is a cash out refinance
lender, Yes. A borrower will always need a Mortgagewhich allows a borrower to take out a new loan of up
Lender to actually fund a loan. Mortgage brokersto 85% Maximum LTV to consolidate debts, convert
cannot make loans, only lenders can.equity to cash, or consolidate a Second Mortgage less
What is a FHA mortgage Broker? Should I use athan 12 months old into a single mortgage loan
Mortgage Broker?payment. The second type of refinance allows up to
A mortgage broker is licensed with the state. The97% LTV and can consolidate older debts including
broker license give an individual or broker business theHELOC's and Second Mortgages into a single note,
authority to place loans with lenders in a given state. Athat could create a lower mortgage payment. The last
mortgage broker must always have their mortgagetype of refinance is called a streamline refinance. The
broker license placed with a mortgage broker business.streamline refinance takes an existing FHA loan and
Neither a mortgage broker nor a mortgage brokercreates a new FHA loan to reduce either the
business can make a loan in any state. A mortgagerepayment terms or the monthly payment. Under a
broker acts as a facilitator working with multiplestreamline loan, a borrower does not have to qualify
lenders to negotiate loan terms that meet the financialfor the loan provided the monthly payment is not
requirements of a borrower. Only a mortgage lenderincreasing and the loan reduces the monthly mortgage
can approve a loan and lend the funds necessary topayment by at least $50.00 per month. In this situation,
create mortgage, the broker simply acts as conduit.the streamline loan does not require an appraisal of the
Many of todays mortgage lenders act as both ahome. Further, closing costs associated with a
Lender and Broker. Should you use a mortgagestreamline refinance are typically much lower than
broker? As mortgage lender we're biased and saythose experienced with a traditional refinance. To learn
"No" you shouldn't.more give us a call at 1-800-570-0448 or just use our
What is an FHA Mortgage Originator?quick application.
A mortgage originator is another term used toHow soon can I refinance to a new home loan?
describe an individual who helps a borrower to prepareIf you find yourself in a position of being in the wrong
for and complete a mortgage application. As part ofhome loan, in some instances you can refinance a loan
the duties of a mortgage originator, they will counselwithin 1 to 6 months after the original closing. These
you on what loan products are appropriate basedearly loan exits require extraordinary compensating
upon your credit quality, debt ratios, and housing ratios.factors that can include Sub-Prime loan placement
Mortgage originators put together specific loanwithin a high risk loan product when a borrower would
offerings, can lock interest rates, and traditionallyhave qualified for a low fixed rate loan, or a recent
manage the signing of specific loan documents amongdeath where the deceased just purchased or
other duties. They are also known as loan officers,refinance and you're now required to remove their
loan associates, and mortgage brokers.name from the note and mortgage. If you're in a
What is a FHA Mortgage Loan Processor?situation where you believe you need to refinance.
After your initial application is reviewed by a mortgageHow often can I refinance my home?
originator and you have selected a specific loanTraditionally, a qualified borrower can refinance their
product, a loan processor is traditionally responsible forhome every 12 months. The reality is, if you are finding
organizing a loan file and gathering required loanyourself needing to refinance frequently, chances are
documents necessary for an underwriter to reviewhigh you're getting terrible financial advice. If you're in a
and approve your loan file. This process is also calledposition of needing repeated refinancing, give us a call
"File Stacking". Typically upon initial review of a properlytoday at 1-800-570-0448 or use our quick application
prepared and stacked file, and underwriter will haveto make contact with us. The typical borrower pays 12
what are call "Stips" that are additional documentationto 20 thousand dollars a year in mortgage interest.
and information required to approve a mortgage loan.That amount of interest will never go down unless you
The loan processor is traditionally responsible forbegin paying more towards your principle. Constant
ensuring all outstanding stips are met and cleared byrefinancing under the same 30 years term is like
the underwriter.starting your loan all over again. A new loan each time
What is an FHA Mortgage Underwriter?that in many instances increases the original amount
A mortgage underwriter is a person who reviews afinanced through additional closing costs. It's a ground
borrowers file to ensure the documentation necessaryhog day mortgage you don't want to repeat!
for approval matches the stipulations and parametersHow can I refinance my home when
established for a particular loan product. Traditionally,I have credit problems?
when there are areas in which the underwriterCredit problems do not always prevent a homeowner
requires clarification, they will seek additionalfrom being approved for a new home loan. While they
documentation from a borrower in which they use todo represent obstacles, at 1st Continental Mortgage,
create a paper trail that will support their underwritingwe work hard to find the right program that can
decision.create either a short term or long term mortgage
What is an FHA  Pre-Approval Letter?solution with almost any credit issues you have today.
A preapproval letter is a document which a homeGive us a call at 1-800-570-0448 or apply using our
buyer can receive from a mortgage broker or lenderquick application to learn more. Remember; Until a new
that tells them that, based upon the informationhome loan closes, never stop making a mortgage
provided at the time of application, they have apayment on an existing mortgage loan.
probability of being approved for a particular loanWhere can I refinance my home if I'mlate on my
product. Home Buyers use these letters to reassuremortgage?
home sellers of their ability to receive the financing andAt 1st Continental Mortgage we offer several
funding necessary to close on the purchase ofprograms that can potentially assist homeowners who
property. Pre-Approval letters are non-binding and areare facing financial difficulties that have resulted in late
not legal documents. Rather, they are a professionalmortgage payments. Give us a call today at
assessment of a borrowers potential financial1-800-570-0448 or use our quick application to learn
capability.more. Regardless of whether you do business with us,
What is an FHA  Mortgage Commitment?or another mortgage firm, never stop paying your
A mortgage commitment letter is used by lenders tomortgage payment during a refinance until you've
confirm to a borrower they are approved for fundingclosed on your new mortgage!
of a loan under very specific terms and conditions.