Sarasota FHA Mortgage
Sarasota FHA Mortgage, Sarasota FHA home loans
Core Mortgage Financial are considered experts at Sarasota FHA mortgages. During 2013, there will be some significant changes to Sarasota FHA mortgage loans that are important for potential borrowers to understand. In part, these changes are being made in order to keep the FHA solvent following the unprecedented mortgage crisis.
Understanding the FHA Loan
If you are interested in a Sarasota FHA mortgage, it is critical that as a consumer you have a basic understanding of the rules associated with FHA loans. FHA home loans are government backed loans that are intended for borrowers that cannot provide traditional down payment and credit score requirements. Typically, borrowers who have a steady income and a credit score as low as 580 may be eligible for a Sarasota FHA home loan. Other programs often require credit scores that are significantly higher.
Sarasota FHA home loan upfronts
In addition to making a 3.5% down payment on your home, you will also be required to pay other costs upfront. These include some of the following:
- Homeowners Insurance – Many insurance companies require that the first year of insurance payments are paid in advance before they issue an insurance binder. This may still be required even if you are going to be paying your insurance and taxes along with your mortgage payment through a lender’s escrow.
- FHA Mortgage Insurance – When your down payment is less than 20 percent of the value of your home, you will be required to make an upfront payment towards mortgage insurance. The initial payment is typically 1.75 percent of the loan payment. While many lenders will roll this amount into your financing, this may change in 2013 and going forward. In addition, there is an annual cost of 1.25 percent of the mortgage amount annually. In 2013, there is a chance that your first years payment may be payable upfront depending on what changes the FHA makes to the program.
- Property taxes – Nearly all borrowers will be required to make some type of upfront payment towards property taxes. The amount due is based on when the taxes are due on the property. In general, any portion of the taxes that are due prior to the end of the quarter must be paid upfront at the time you obtain your Sarasota FHA mortgage. ( escrow account)
- Title insurance – Title insurance is in force to protect the lender from title defects. These defects include mortgages that were not property discharged, heirs or divorced partners who have not been removed from the title, etc. It is important to understand that unless otherwise specified, title insurance covers the lender in the event of a problem, not the homeowner or buyer.
Borrowers who may be eligible for a Sarasota FHA home loan should make sure they are aware of all the potential changes that may be made during 2013. In some cases, the changes will not impact most borrowers but in others, there may be a significant change in how much they need to finance or how much they need to pay upfront out of pocket. At Core Mortgage Financial, we specialize in knowing how the changes in programs impact our clients. Contact us today and let us help you understand the changes in the Sarasota FHA mortgage programs and how they impact you.
Call our office today at 855-554-2673. Alternatively, you can personally visit our Sarasota office.
Disclaimer: This article is for informational purposes only. Programs, guidelines change daily, please call our office for current FHA lending requirements. NMLS #849597